This study investigates the role of institutions in the relationship between natural resources and economic growth using a panel data of 44 African countries over the period 1996-2016. We use natural resource rents as a percentage of GDP and the share of ores and metals in total merchandise exports as variables for natural resources and six indicators of institutional quality. To check for endogenetity, heterogeneity and non-linearity we undertake a crosssectional instrumental variable analysis, a system dynamic panel-data instrumental variable regression and panel smooth transition regression. The relationship between natural resources on economic growth vary for indicators of institutional quality and the measure for natural resources. The non-linear relationship between natural resources and economic growth is significantly ameliorate when we consider the variables rule of law and regulations and quality for both natural resource rents as a percentage of GDP and the share of ores and metals to total export.

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