IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-24-00009.html

Does resource abundance impede growth in services? An empirical study from global panel data

Author

Listed:
  • Mamoudou Camara

    (IESEG School of Management)

Abstract

Most empirical studies on the relationship between natural resource abundance and sectoral output focused on manufacturing and agriculture. Given the growing importance of services both in developed and developing economies for several decades, this article aims to analyze the effects of natural resource abundance on services with special focus on sub-Saharan Africa. Applying the Generalized Quantile Regression (GQR) estimator on panel data from 100 countries over the period 1990-2020, the results reveal that natural resource abundance negatively affects services. Especially, we find robust evidence that natural resource rents have a negative and significant impact on services both for the full sample and in sub-Saharan Africa, suggesting that natural resource abundance impedes the growth in services. Our results are robust to the use of oil and gas rents as an alternative proxy for natural resource abundance, especially for the full sample.

Suggested Citation

  • Mamoudou Camara, 2025. "Does resource abundance impede growth in services? An empirical study from global panel data," Economics Bulletin, AccessEcon, vol. 45(3), pages 1573-1587.
    • Handle: RePEc:ebl:ecbull:eb-24-00009
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P137.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Auty, Richard M., 2001. "The political economy of resource-driven growth," European Economic Review, Elsevier, vol. 45(4-6), pages 839-846, May.
    2. Pham, Tien & Jago, Leo & Spurr, Ray & Marshall, Justin, 2015. "The Dutch Disease effects on tourism – The case of Australia," Tourism Management, Elsevier, vol. 46(C), pages 610-622.
    3. Fan, Rui & Fang, Ying & Park, Sung Y., 2012. "Resource abundance and economic growth in China," China Economic Review, Elsevier, vol. 23(3), pages 704-719.
    4. Alssadek, Marwan & Benhin, James, 2021. "Oil boom, exchange rate and sectoral output: An empirical analysis of Dutch disease in oil-rich countries," Resources Policy, Elsevier, vol. 74(C).
    5. Shahbaz, Muhammad & Balsalobre-Lorente, Daniel & Sinha, Avik, 2019. "Foreign Direct Investment–CO2 Emissions Nexus in Middle East and North African countries: Importance of Biomass Energy Consumption," MPRA Paper 91729, University Library of Munich, Germany, revised 19 Jan 2019.
    6. Byaro, Mwoya & Rwezaula, Anicet & Ngowi, Nicholaus, 2023. "Does internet use and adoption matter for better health outcomes in sub-Saharan African countries? New evidence from panel quantile regression," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. Auty, Richard M, 1998. "Mineral wealth and the economic transition: Kazakstan," Resources Policy, Elsevier, vol. 24(4), pages 241-249, December.
    8. David Powell, 2020. "Quantile Treatment Effects in the Presence of Covariates," The Review of Economics and Statistics, MIT Press, vol. 102(5), pages 994-1005, December.
    9. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
    10. Marañon, Matias & Kumral, Mustafa, 2021. "Empirical analysis of Chile's copper boom and the Dutch Disease through causality and cointegration tests," Resources Policy, Elsevier, vol. 70(C).
    11. Arin, K. Peren & Braunfels, Elias, 2018. "The resource curse revisited: A Bayesian model averaging approach," Energy Economics, Elsevier, vol. 70(C), pages 170-178.
    12. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    Full references (including those not matched with items on IDEAS)

    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. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    2. Navendradat Hardyal & Stephan Moonsammy & Devin Warner, 2024. "A systematic review of the effects and symptoms of the Dutch Disease globally: Lessons for Guyana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(3), pages 5665-5688, March.
    3. Federico Inchausti-Sintes, 2024. "Avoiding the Dutch Disease in tourism-led economies: reconciling tourism development and sectoral diversification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(2), pages 213-239, May.
    4. Apergis, Nicholas & El-Montasser, Ghassen & Sekyere, Emmanuel & Ajmi, Ahdi N. & Gupta, Rangan, 2014. "Dutch disease effect of oil rents on agriculture value added in Middle East and North African (MENA) countries," Energy Economics, Elsevier, vol. 45(C), pages 485-490.
    5. Baena, César & Sévi, Benoît & Warrack, Allan, 2012. "Funds from non-renewable energy resources: Policy lessons from Alaska and Alberta," Energy Policy, Elsevier, vol. 51(C), pages 569-577.
    6. Nhabinde, Simeão & Heshmati, Almas, 2020. "The Extractive Industry’s impact on Economic Growth in SADC Countries," GLO Discussion Paper Series 656, Global Labor Organization (GLO).
    7. Akhmetov, Almaz, 2017. "Testing the Presence of the Dutch Disease in Kazakhstan," MPRA Paper 77936, University Library of Munich, Germany.
    8. Constantine, Collin & Khemraj, Tarron, 2025. "The monetary aspects of the Dutch disease," International Review of Economics & Finance, Elsevier, vol. 101(C).
    9. Tiba, Sofien & Frikha, Mohamed, 2019. "The controversy of the resource curse and the environment in the SDGs background: The African context," Resources Policy, Elsevier, vol. 62(C), pages 437-452.
    10. Mamoudou Camara, 2023. "How do Natural Resource Abundance and Agriculture Affect Economic Growth in Guinea?," International Journal of Economics and Financial Issues, Econjournals, vol. 13(3), pages 109-116, May.
    11. Erling Røed Larsen, 2004. "Escaping the Resource Curse and the Dutch Disease? When and Why Norway Caught up with and Forged ahead of Its Neighbors," Discussion Papers 377, Statistics Norway, Research Department.
    12. Hassan F Gholipour & Reza Tajaddini & Usama Al-mulali, 2022. "Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation," Tourism Economics, , vol. 28(5), pages 1401-1415, August.
    13. Kaznacheev, Peter, 2013. "Resource Rents and Economic Growth: Economic and institutional development in countries with a high share of income from the sale of natural resources. Analysis and recommendations based on internatio," EconStor Research Reports 121950, ZBW - Leibniz Information Centre for Economics.
    14. Inchausti-Sintes, Federico, 2015. "Tourism: Economic growth, employment and Dutch Disease," Annals of Tourism Research, Elsevier, vol. 54(C), pages 172-189.
    15. Shahbaz, Muhammad & Ahmed, Khalid & Tiwari, Aviral Kumar & Jiao, Zhilun, 2019. "Resource curse hypothesis and role of oil prices in USA," Resources Policy, Elsevier, vol. 64(C).
    16. Yap, Woon Kan & Anuar, Nor Liyana M. & Choong, Yun Cyn, 2025. "The blessing and curse of natural resource dependence: A stochastic frontier analysis on productivity, resource rent, governance and sustainability," Resources Policy, Elsevier, vol. 108(C).
    17. Eregha, Perekunah B. & Mesagan, Ekundayo P., 2020. "Oil resources, deficit financing and per capita GDP growth in selected oil-rich African nations: A dynamic heterogeneous panel approach," Resources Policy, Elsevier, vol. 66(C).
    18. Frederick van der Ploeg, 2011. "Natural Resources: Curse or Blessing?," Journal of Economic Literature, American Economic Association, vol. 49(2), pages 366-420, June.
    19. Silvana Sandonato & Henry Willebald, 2018. "Natural Capital, Domestic Product and Proximate Causes of Economic Growth: Uruguay in the Long Run, 1870–2014," Sustainability, MDPI, vol. 10(3), pages 1-26, March.
    20. Ruslan Aliyev, 2012. "Monetary Policy in Resource-Rich Developing Economies," CERGE-EI Working Papers wp466, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation

    Statistics

    Access and download statistics

    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:ebl:ecbull:eb-24-00009. 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: John P. Conley (email available below). General contact details of provider: .

    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.