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Natural resource rents in developing countries: Is the positive influence on the fragilities real?

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  • Ongo Nkoa, Bruno Emmanuel
  • Song, Jacques Simon
  • Minkoue Bikoula, Brice

Abstract

Natural resource rents continue to expend an extremely fruitful literature. In this article, we examine their consequences on the observed fragilities in developing countries (DC's). Thus, starting from the different dimensions of fragility (economic, social, political, security, environmental), we specify and estimate a linear model by using a cross-sectional data on the sample of 91 countries based on an average data over the period from 2010 to 2019. By using econometric technique based on the two-stage least squares (2SLS), our results show that resource rents increase global fragility in developing countries, as well as economic, political, social and security fragilities. Controlled by historical and fractionalization variables our results remain stable and robust. We suggest responsible, transparent and inclusive management of these resources. Governments, companies and international organizations must work together to promote good governance, transparency and accountability in the exploitation of natural resources in developing countries.

Suggested Citation

  • Ongo Nkoa, Bruno Emmanuel & Song, Jacques Simon & Minkoue Bikoula, Brice, 2024. "Natural resource rents in developing countries: Is the positive influence on the fragilities real?," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s0301420723012527
    DOI: 10.1016/j.resourpol.2023.104541
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    More about this item

    Keywords

    Developing countries; Fragility; Resource rents; 2SLS;
    All these keywords.

    JEL classification:

    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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