IDEAS home Printed from https://ideas.repec.org/a/gam/jijerp/v18y2021i12p6236-d571668.html
   My bibliography  Save this article

Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

Author

Listed:
  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey)

  • Chuka Uzoma Ifediora

    (Marketing Department, University of Nigeria, Enugu Campus (UNEC), Enugu 400241, Nigeria)

  • Jamiu Adetola Odugbesan

    (Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey)

  • Benneth Chiemelie Iloka

    (Department of Marketing, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu 400241, Nigeria)

  • João Xavier Rita

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • Rui Miguel Dantas

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • Mário Nuno Mata

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • José Moleiro Martins

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal
    Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), 2649-026 Lisbon, Portugal)

Abstract

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

Suggested Citation

  • Husam Rjoub & Chuka Uzoma Ifediora & Jamiu Adetola Odugbesan & Benneth Chiemelie Iloka & João Xavier Rita & Rui Miguel Dantas & Mário Nuno Mata & José Moleiro Martins, 2021. "Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa," IJERPH, MDPI, vol. 18(12), pages 1-18, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:12:p:6236-:d:571668
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1660-4601/18/12/6236/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1660-4601/18/12/6236/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrés Burgos & Frédéric Mertens, 2017. "Participatory management of community-based tourism: A network perspective," Community Development, Taylor & Francis Journals, vol. 48(4), pages 546-565, August.
    2. Eberhardt, Markus & Presbitero, Andrea F., 2015. "Public debt and growth: Heterogeneity and non-linearity," Journal of International Economics, Elsevier, vol. 97(1), pages 45-58.
    3. Arnold, Jens & Bassanini, Andrea & Scarpetta, Stefano, 2011. "Solow or Lucas? Testing speed of convergence on a panel of OECD countries," Research in Economics, Elsevier, vol. 65(2), pages 110-123, June.
    4. Regis Musavengane & Danny Mulala Simatele, 2016. "Community-based natural resource management: The role of social capital in collaborative environmental management of tribal resources in KwaZulu-Natal, South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 33(6), pages 806-821, November.
    5. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    6. Jeffrey M. Wooldridge, 2002. "Inverse probability weighted M-estimators for sample selection, attrition, and stratification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 1(2), pages 117-139, August.
    7. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    8. Pesaran M.H. & Schuermann T. & Weiner S.M., 2004. "Modeling Regional Interdependencies Using a Global Error-Correcting Macroeconometric Model," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 129-162, April.
    9. Chow, Gregory C & Lin, An-loh, 1971. "Best Linear Unbiased Interpolation, Distribution, and Extrapolation of Time Series by Related Series," The Review of Economics and Statistics, MIT Press, vol. 53(4), pages 372-375, November.
    10. Stojanovska, M. & Miovska, M. & Jovanovska, J. & Stojanovski, V., 2014. "The process of forest management plans preparation in the Republic of Macedonia: Does it comprise governance principles of participation, transparency and accountability?," Forest Policy and Economics, Elsevier, vol. 49(C), pages 51-56.
    11. Yeboah-Assiamah, Emmanuel & Muller, Kobus & Domfeh, Kwame Ameyaw, 2016. "Rising to the challenge: A framework for optimising value in collaborative natural resource governance," Forest Policy and Economics, Elsevier, vol. 67(C), pages 20-29.
    12. Sebastian Elischer, 2019. "Contemporary Civil-Military Relations in the Sahel," West African Papers 19, OECD Publishing.
    13. Husam Rjoub & Jamiu Adetola Odugbesan & Tomiwa Sunday Adebayo & Wing-Keung Wong, 2021. "Investigating the Causal Relationships among Carbon Emissions, Economic Growth, and Life Expectancy in Turkey: Evidence from Time and Frequency Domain Causality Techniques," Sustainability, MDPI, vol. 13(5), pages 1-20, March.
    14. Benson, Catherine S., 2012. "Shifting accountabilities? Understanding the connections between national and provincial fisheries in Papua New Guinea," Marine Policy, Elsevier, vol. 36(4), pages 859-866.
    15. Daniel Eizenga, 2019. "Long term trends across security and development in the Sahel," West African Papers 25, OECD Publishing.
    16. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    17. Damiaan Persyn & Joakim Westerlund, 2008. "Error-correction–based cointegration tests for panel data," Stata Journal, StataCorp LP, vol. 8(2), pages 232-241, June.
    18. Ian Bannon & Paul Collier, 2003. "Natural Resources and Violent Conflict : Options and Actions," World Bank Publications - Books, The World Bank Group, number 15047, December.
    19. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    20. Gulasekaran Rajaguru & Tilak Abeysinghe, 2004. "Quarterly real GDP estimates for China and ASEAN4 with a forecast evaluation," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 23(6), pages 431-447.
    21. Francesco Fuso Nerini & Julia Tomei & Long Seng To & Iwona Bisaga & Priti Parikh & Mairi Black & Aiduan Borrion & Catalina Spataru & Vanesa Castán Broto & Gabrial Anandarajah & Ben Milligan & Yacob Mu, 2018. "Mapping synergies and trade-offs between energy and the Sustainable Development Goals," Nature Energy, Nature, vol. 3(1), pages 10-15, January.
    22. Pesaran, M. Hashem, 2015. "Time Series and Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780198759980.
    23. Jamiu Adetola Odugbesan & Husam Rjoub, 2019. "Relationship among HIV/AIDS Prevalence, Human Capital, Good Governance, and Sustainable Development: Empirical Evidence from Sub-Saharan Africa," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    24. Peter C. B. Phillips & Donggyu Sul, 2003. "Dynamic panel estimation and homogeneity testing under cross section dependence *," Econometrics Journal, Royal Economic Society, vol. 6(1), pages 217-259, June.
    25. Siakwah, Pius, 2017. "Are natural resource windfalls a blessing or a curse in democratic settings? Globalised assemblages and the problematic impacts of oil on Ghana's development," Resources Policy, Elsevier, vol. 52(C), pages 122-133.
    26. Paul Collier & V. L. Elliott & Håvard Hegre & Anke Hoeffler & Marta Reynal-Querol & Nicholas Sambanis, 2003. "Breaking the Conflict Trap : Civil War and Development Policy," World Bank Publications - Books, The World Bank Group, number 13938, December.
    27. Patrick Milabyo Kyamusugulwa, 2013. "Local ownership in community-driven reconstruction in the Democratic Republic of Congo," Community Development, Taylor & Francis Journals, vol. 44(3), pages 364-385, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferreira, João J. & Gomes, Sofia & Lopes, João M. & Zhang, Justin Z., 2023. "Ticking time bombs: The MENA and SSA regions' geopolitical risks," Resources Policy, Elsevier, vol. 85(PA).
    2. Afolabi, Joshua Adeyemi, 2023. "Natural resource rent and environmental quality nexus in Sub-Saharan Africa: Assessing the role of regulatory quality," Resources Policy, Elsevier, vol. 82(C).
    3. Wing-Keung Wong, 2022. "Editorial Statement and Research Ideas on Using Behavioral Models in Environmental Research and Public Health with Applications," IJERPH, MDPI, vol. 19(12), pages 1-3, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmet Erülgen & Husam Rjoub & Ahmet Adalıer, 2020. "Bank Characteristics Effect on Capital Structure: Evidence from PMG and CS-ARDL," JRFM, MDPI, vol. 13(12), pages 1-13, December.
    2. Zhenxiong Li & Hilary Ingham, 2020. "Financial Development, Economic Performance and Democracy," Working Papers 291296033, Lancaster University Management School, Economics Department.
    3. Gianni Carvelli, 2023. "The long-run effects of government expenditure on private investments: a panel CS-ARDL approach," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(3), pages 620-645, September.
    4. Victor Mawutor Agbo & Larry Swatuk, 2023. "From conflict to collaboration: Atewa Forest governance," Natural Resources Forum, Blackwell Publishing, vol. 47(1), pages 134-151, February.
    5. Jabir Esmaeil & Husam Rjoub & Wing-Keung Wong, 2020. "Do Oil Price Shocks and Other Factors Create Bigger Impacts on Islamic Banks than Conventional Banks?," Energies, MDPI, vol. 13(12), pages 1-16, June.
    6. Rizvi, Syed Kumail Abbas & Naqvi, Bushra & Boubaker, Sabri & Mirza, Nawazish, 2022. "The power play of natural gas and crude oil in the move towards the financialization of the energy market," Energy Economics, Elsevier, vol. 112(C).
    7. Antonia Arsova, 2019. "Exchange rate pass-through to import prices in Europe: A panel cointegration approach," Working Paper Series in Economics 384, University of Lüneburg, Institute of Economics.
    8. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2021. "Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 330-341.
    9. Alexander Chudik & M. Hashem Pesaran & Kamiar Mohaddes, 2020. "Identifying Global and National Output and Fiscal Policy Shocks Using a GVAR," Advances in Econometrics, in: Essays in Honor of Cheng Hsiao, volume 41, pages 143-189, Emerald Group Publishing Limited.
    10. Elisabet Rodriguez Llorian & Janelle Mann, 2022. "Exploring the technology–healthcare expenditure nexus: a panel error correction approach," Empirical Economics, Springer, vol. 62(6), pages 3061-3086, June.
    11. Giampaolo Arachi & Valeria Bucci & Alessandra Casarico, 2015. "Tax structure and macroeconomic performance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(4), pages 635-662, August.
    12. Kuhn, Michael & Minniti, Antonio & Prettner, Klaus & Venturini, Francesco, 2023. "Medical innovation, life expectancy, and economic growth," Department of Economics Working Paper Series 342, WU Vienna University of Economics and Business.
    13. NguyenHuu, Tams & Karaman Örsal, Deniz Dilan, 2020. "A new and benign hegemon on the horizon? The Chinese century and growth in the Global South," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-35.
    14. Bruno Albuquerque & Georgi Krustev, 2018. "Debt Overhang and Deleveraging in the US Household Sector: Gauging the Impact on Consumption," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 459-481, June.
    15. Chudik, Alexander & Grossman, Valerie & Pesaran, M. Hashem, 2016. "A multi-country approach to forecasting output growth using PMIs," Journal of Econometrics, Elsevier, vol. 192(2), pages 349-365.
    16. Hector Sala & Pedro Trivín, 2018. "The effects of globalization and technology on the elasticity of substitution," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 617-647, August.
    17. Zallé, Oumarou, 2022. "Natural Resource Dependence, Corruption, and Tax Revenue Mobilization," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 316-336.
    18. Devdatta Ray & Mikael Linden, 2020. "Health expenditure, longevity, and child mortality: dynamic panel data approach with global data," International Journal of Health Economics and Management, Springer, vol. 20(1), pages 99-119, March.
    19. Mariam Camarero & Sergi Moliner & Cecilio Tamarit, 2022. "Which are the long-run determinants of US outward FDI? Evidence using large long-memory panels," Working Papers 2022.08, International Network for Economic Research - INFER.
    20. Eberhardt, Markus, 2019. "Democracy Does Cause Growth: Comment," CEPR Discussion Papers 13659, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijerp:v:18:y:2021:i:12:p:6236-:d:571668. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.