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Africa's natural resource curse: Does the arrival of new heads of state break the spell?

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  • Limi Kouotou, Hibrahim
  • Atangana Ondoa, Henri

Abstract

This paper investigates how the political alternation of heads of state channels the link between natural resources and economic growth in 43 African countries from 1972 to 2014. The results show that the direct effect of natural resources on growth is negative; but the indirect effect via the channel of political alternation is rather positive. Also, a threshold analysis shows that before the 6th political alternation within a country, the overall effect of natural resources on growth is negative; beyond that, this overall effect becomes positive. We conclude that recursive changes of heads of state improve the effect of natural resources on growth and that, in the long run, the arrival of new heads of state breaks the curse in Africa.

Suggested Citation

  • Limi Kouotou, Hibrahim & Atangana Ondoa, Henri, 2023. "Africa's natural resource curse: Does the arrival of new heads of state break the spell?," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000648
    DOI: 10.1016/j.resourpol.2023.103356
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