Exploring the nexus among natural resource rents, human capital and industrial development in the SSA region

For many years, the United Arab Emirates has been using its natural resource wealth to develop infrastructure and attain economic growth. Nevertheless, human capital theory stresses the importance of human capital to reach sustainability in the long-term. This study examines the impacts of natural resource rents and institutional quality on human capital by applying the cointegration and error correction model based on the autoregressive distributed lag (ARDL) approach. The study uses corruption and law and order as proxies for institutional quality. The results indicate that one percent increases in resource rents and corruption decrease the human capital by 0.16% and 0.14%, respectively, in the long-term. Moreover, in the short-term, the current corruption and lag of resource rents have significant negative impacts on human capital. However, law and order has a positive impact on human capital in both the short and long-term. Thus, this study suggests that there is an instant need to prioritize education to reach long-term sustainability.

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Foreign Capital, Natural Resource Rents and Financial Development: A New Approach

Global Business Review ◽

10.1177/0972150920961364 ◽

2020 ◽

pp. 097215092096136

Author(s):

Muhammad Shahbaz ◽

Mohammad Ali Aboutorabi ◽

Farzaneh Ahmadian Yazdi

Keyword(s):

Financial Development ◽

Natural Resource ◽

Capital Accumulation ◽

Foreign Capital ◽

New Approach ◽

Resource Rents ◽

Long Run ◽

Natural Resource Rents ◽

Rich Countries ◽

The Impact

This article explores the impact of financial development on the ‘natural resources rents–foreign capital accumulation nexus’ in selected natural resource–rich countries during 1970Q1–2016Q4. In doing so, we propose a new approach by applying the autoregressive distributed lag (ARDL) rolling regression technique for our empirical purpose. The results show that financial development has a positive and significant effect on the way natural resource rents affect foreign capital in the case of Australia, Chile, Ecuador, Egypt and Peru in both the short run and the long run. We achieve the same results in the case of Colombia and Iran too, but just in the long run. Also, short-term and long-term negative effects of financial development on the rents–foreign capital nexus are witnessed just in the case of Algeria. We provide some empirical evidence for further robustness of our findings. Finally, we suggest that there is a necessity for the development of the financial system in natural resource–rich countries to reach higher levels of foreign capital, which has a crucial role in their economic growth.

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Growth Recoveries (from Collapses)

10.18235/0003419 ◽

2021 ◽

Author(s):

Juan Francisco Meneses ◽

José Luis Saboin

Keyword(s):

Exchange Rate ◽

Natural Resource ◽

Exchange Rate Regime ◽

Democratic Accountability ◽

Resource Rents ◽

Financial Account ◽

External Conditions ◽

Economic Collapse ◽

Low Levels ◽

Natural Resource Rents

This paper analyzes the behavior of a long list of economic variables during episodes of recovery from an economic collapse. A set of stylized facts is proposed so as to depict what in this work is called \saygrowth recoveries. Through different estimation techniques, it is inferred under which conditions and policies the likelihood of experiencing a growth recovery increases. The results of the paper indicate that collapses tend to occur in countries with high dependence on natural resource rents, macroeconomic mismanagement, low levels of democratic accountability and rule of law and high levels of conflict. Recoveries, on the other hand, tend to be longer than collapses and are more likely to occur in contexts of: improved external conditions, less natural resource rents, balanced fiscal accounts, where the exchange rate corrects but within a more fixed exchange rate regime and a more restricted financial account, and where there are: rebounds in private consumption, increases in international trade and improvements on property rights.

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Federal finance arrangements in Canada: the challenges of fiscal imbalance and natural resource rents

Intergovernmental Transfers in Federations ◽

10.4337/9781789900859.00015 ◽

2020 ◽

pp. 109-133

Author(s):

Marcelin Joanis ◽

François Vaillancourt

Keyword(s):

Natural Resource ◽

Resource Rents ◽

Fiscal Imbalance ◽

Natural Resource Rents

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Natural resource rents, political regimes and terrorism in Africa

International Economics ◽

10.1016/j.inteco.2020.04.003 ◽

2020 ◽

Vol 162 ◽

pp. 50-66 ◽

Cited By ~ 2

Author(s):

Kazeem B. Ajide ◽

Juliet I. Adenuga ◽

Ibrahim D. Raheem

Keyword(s):

Natural Resource ◽

Political Regimes ◽

Resource Rents ◽

Natural Resource Rents

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Nigerian Governance Challenge: Exploring the Role of Natural Resource Rents

Global Journal of Emerging Market Economies ◽

10.1177/0974910120919001 ◽

2020 ◽

Vol 12 (3) ◽

pp. 335-358

Author(s):

Fisayo Fagbemi ◽

Grace Omowumi Adeoye

Keyword(s):

Natural Resource ◽

Good Governance ◽

Political Commitment ◽

Causality Test ◽

Resource Rents ◽

Long Run ◽

Short Run ◽

Resource Wealth ◽

Natural Resource Rents ◽

Natural Resource Wealth

Nigeria is a glaring example of a country where weak public institutions are pervasive in spite of its huge natural resource wealth. The presence of natural resource abundance has exacerbated the overwhelming development challenge in the economy. While the upshot of most empirical findings of the resource impact covers how the growth path is determined through the channel of institutions, the question as to why resource rents often fail to stimulate improved governance is more critical than ever. Hence, the study examines the effect of natural resource rents on the quality of governance in Nigeria for the period 1984–2017, using ARDL bounds test approach, Dynamic Least Squares (DOLS), and Granger Causality test based on Vector Error Correction Model (VECM). Results reveal that natural resource rents have an insignificant effect on governance indicators in the long-run as well in the short-run, suggesting that natural resource windfalls have a shallow effect on the development of good governance. However, further evidence indicates that pervasive institutional gaps in Nigeria could be stimulated or caused by the overdependence on natural resource rents and entrenched mismanagement tendencies. Thus, the study suggests that maintaining strong political commitment, curtailing overdependence on natural resources, and ensuring sound management of natural resource wealth are central for improved governance.

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No taxation, no representation: An investigation of the relationship between natural resources and fiscal decentralization

Environment and Planning C Politics and Space ◽

10.1177/2399654417752683 ◽

2018 ◽

Vol 36 (7) ◽

pp. 1234-1255

Author(s):

Mohammad Arzaghi ◽

Andrew Balthrop

Keyword(s):

Natural Resources ◽

Natural Resource ◽

Local Governments ◽

Central Government ◽

Fiscal Decentralization ◽

Government Expenditures ◽

Government Control ◽

Resource Rents ◽

Natural Resource Rents ◽

The Relationship

Rents from natural resources can alter the relationship between central and local governments by providing a new source of government financing. We develop a model to explore the relationship between fiscal decentralization and resource abundance. Our model indicates that natural resource rents can detach central government expenditures from the tax base so that the central government can spend more to persuade a fractious periphery to remain under central government control. Thus, other things being equal, higher natural resource rents can result in less decentralized government expenditures. We empirically explore the relationship between fiscal decentralization and natural resource rents using a panel of 60 countries over the past 40 years. Empirical results support our economic model: A 1% increase in natural resource rents as a fraction of gross domestic product results in government expenditures that are 0.53% less decentralized.

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