<p>Developing nations with abundance natural resources are believed not to receive any substantial economic gain from the resources endowed in their countries because of high political instability and corruption levels in these countries. However, this research shows that natural resources can play an instrumental role in advancing economic development and raising the living standards in the development nations. This research also investigates on how to advance economic development with technological innovations, financial resources and through Government effectiveness. The Sub-Saharan African nations are taken as the case, with a dataset ranging from 2000 to 2021. This research provides new evidence through adopting the Methods of Moments Quantile Regression technique. The major results presented in the study shows that natural resources rents play a crucial role in ensuring the income per capita in this region is raised. This shows that the Resource Curse theory does not hold in the Sub-Saharan African nations, rather the Resource Bless theory holds. Technological innovations, Green Finance, financial development and Government effectiveness significantly raises the income per capita in this region. Renewable energy is observed to reduce the income per capita in the Sub-Saharan African nations, posing a dilemma in making policies since renewable energy is important in achieving environmental sustainability. Therefore, developing countries should promote natural resources extraction and conservation, technological advancement, financial resources advancement and governance to ensure the attainment of economic development. Developing nations should also take advantage of Green Finance in supporting renewable energy generation to resolve the dilemma of attaining economic goods and sustainability.</p>

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Are natural resources a curse or a blessing in the developing nations? New evidence from the Sub-Saharan African countries

  • Abraham Deka,
  • Suleiman Bako,
  • Huseyin Ozdeser

摘要

Developing nations with abundance natural resources are believed not to receive any substantial economic gain from the resources endowed in their countries because of high political instability and corruption levels in these countries. However, this research shows that natural resources can play an instrumental role in advancing economic development and raising the living standards in the development nations. This research also investigates on how to advance economic development with technological innovations, financial resources and through Government effectiveness. The Sub-Saharan African nations are taken as the case, with a dataset ranging from 2000 to 2021. This research provides new evidence through adopting the Methods of Moments Quantile Regression technique. The major results presented in the study shows that natural resources rents play a crucial role in ensuring the income per capita in this region is raised. This shows that the Resource Curse theory does not hold in the Sub-Saharan African nations, rather the Resource Bless theory holds. Technological innovations, Green Finance, financial development and Government effectiveness significantly raises the income per capita in this region. Renewable energy is observed to reduce the income per capita in the Sub-Saharan African nations, posing a dilemma in making policies since renewable energy is important in achieving environmental sustainability. Therefore, developing countries should promote natural resources extraction and conservation, technological advancement, financial resources advancement and governance to ensure the attainment of economic development. Developing nations should also take advantage of Green Finance in supporting renewable energy generation to resolve the dilemma of attaining economic goods and sustainability.