Oil resource abundance, institutions and growth: Evidence from oil producing African countries

Resource Endowment and Export Diversification: Implications for Growth in Nigeria

“…However, on the basis of this study, previous studies will be reviewed in two components. The first focuses on factor endowment and economic growth (Gaitan and Roe, 2011;Isham et al, 2005;Alexeev and Chernyavskiy, 2015;Shao and Yang, 2014;Andersen et al, 2014;Murshed and Serino, 2011;Sachs andWarner, 1995, 2001Eregha and Mesagan, 2016). Out of the studies reviewed in component A, only Andersen et al, (2014), showed that there was a positive effect on growth as a result of the abundant resource, while the rest of the studies reviewed indicated the opposite.…”

“…Sachs and Warner (1995) found that there was an indirect relationship between natural resource abundance and economic growth even after controlling for a large number of variables which were germane for cross-country growth. In a recent study conducted on resource abundant African economies by Eregha and Mesagan (2016), it was confirmed that institutions had insignificant effect on per capita GDP growth and that large crude oil export earnings have not been properly used to develop sectors that can help to grow and develop oil-rich African countries, thereby turning the resource blessing into curse.…”

“…Several studies have shown that many countries that have plentiful natural resource, particularly oil-rich countries, have been ensnared by their resources (Shao and Yang, 2014;Murshed and Serino, 2011;Eregha and Mesagan, 2016). For instance, it was observed that oil-dependent African economies have failed to transform their large oil earnings into funding productive sectors that have positive linkages with their various economies, thereby turning the resource blessing into a curse (Eregha and Mesagan, 2016).…”

“…Several studies have shown that many countries that have plentiful natural resource, particularly oil-rich countries, have been ensnared by their resources (Shao and Yang, 2014;Murshed and Serino, 2011;Eregha and Mesagan, 2016). For instance, it was observed that oil-dependent African economies have failed to transform their large oil earnings into funding productive sectors that have positive linkages with their various economies, thereby turning the resource blessing into a curse (Eregha and Mesagan, 2016). Similarly, studies have shown that countries with abundant resources have the tendency to be highly import-dependent, thereby leading to domestic output and export instability (Malik and Temple, 2009;Acemoglu and Zilibotti, 1997;Di Giovanni and Levchenko, 2006).…”

“…In modern times, diversification of exports in resource-rich countries is now getting the attention of researchers and policy makers, and that is what has necessitated a research of this nature. Several studies have been carried out on the nexus between resource endowment and economic growth (Sachs and Warner, 1995;Isham et al, 2005;Gaitan and Roe, 2011;Murshed and Serino, 2011;Regolo, 2013;Shao and Yang, 2014;Andersen et al, 2014;Alexeev and Chernyavskiy, 2015;Eregha and Mesagan, 2016) with the aim of recommending policies that reduce overdependence on resource endowments. These studies mostly looked at the effect of resource endowment on economic growth, and also the impact of export diversification on several variables such as trade costs, institutions and on the political economy.…”