Economics, Econometrics and Finance
3 years ago

Natural resources hinder industrialization in Africa, governance key to success.

International Review of Applied Economics
Linking natural resource dependence and industrialization in sub-Saharan African countries
Guivis Zeufack Nkemgha, Symphorin Engone Mve, Hermine Balouki Mikala, Honoré Oumbé Tékam

Paper Summary

Related papers

Theme background image
Computer Science
8 years ago

Rent-Seeking Cripples Reforms, Traps Developing Nations in Poverty

Financial Access
Foreign Aid
2 views
Economics, Econometrics and Finance
8 years ago

Transition Economies Trapped in Rent-Seeking Quagmire, Hampering Market Reforms

Monetary Models
Tax Evasion
Credit Expansion
3 views
Economics, Econometrics and Finance
3 years ago

Rent-Seeking Costs Soar as Governments Fail to Protect Profits

Infrastructure Impact
Credit Expansion
Retirement Planning
3 views

The article explores how natural resources impact industrialization in sub-Saharan African countries. By studying 27 countries from 2000 to 2016, the researchers found that relying heavily on natural resources can slow down industrialization. They discovered a U-shaped relationship, meaning some types of natural resources hinder industrialization while others help. Oil, gas, and mineral rents can hold back industrial growth, but forest and coal rents can actually support it. The study also highlights the importance of good governance in lessening the negative effects of natural resources on industrialization in these countries.