IDEAS home Printed from https://ideas.repec.org/a/jso/coejbm/v1y2013i3p154-165.html
   My bibliography  Save this article

Petroleum Resource, institutions and economic growth in Nigeria

Author

Listed:
  • Frances N Obafemi

    () (University of Calabar, Calabar, Nigeria)

  • Uchechi R Ogbuagu
  • Emmanuel Nathan

Abstract

Empirically, the importance of natural resource abundance on economic growth in natural-resource-rich countries has not been in doubt. In this paper, we investigate this role in the context of petroleum resource abundance, institutional quality and economic growth in Nigeria. Share of oil exports to GDP as a measure of petroleum resource abundance and institutional quality were examined using time series data and error correction econometric technique. Findings show that petroleum sector in Nigeria need to be encouraged to play the leading role in the economic growth and development process by improving on the performance of institutions through less corrupt activities, effective governance and sound contract enforcement in order to have a sizeable positive effect on economic growth. Macroeconomic indicators like openness and inflation play crucial role to ensure regular and significant impact of petroleum resources on economic growth in Nigeria. The paper concluded that, an abundance of petroleum resources may in fact be much less of a curse and more of a boom for economic performance than often believed if quality institutions are in place. The petroleum sector remains very strategic to the sustenance of rapid economic growth and development in Nigeria.

Suggested Citation

  • Frances N Obafemi & Uchechi R Ogbuagu & Emmanuel Nathan, 2013. "Petroleum Resource, institutions and economic growth in Nigeria," Journal of Business & Management (COES&RJ-JBM), , vol. 1(3), pages 154-165, July.
  • Handle: RePEc:jso:coejbm:v:1:y:2013:i:3:p:154-165
    as

    Download full text from publisher

    File URL: http://www.centreofexcellence.net/J/JBM/Vol1/No.3/Article3,pp.154-165.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
    2. Anne D. Boschini & Jan Pettersson & Jesper Roine, 2007. "Resource Curse or Not: A Question of Appropriability," Scandinavian Journal of Economics, Wiley Blackwell, vol. 109(3), pages 593-617, September.
    3. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    4. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    5. Acemoglu, Daron & Johnson, Simon & Robinson, James & Thaicharoen, Yunyong, 2003. "Institutional causes, macroeconomic symptoms: volatility, crises and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 49-123, January.
    6. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    7. Robert J. Barro, 1999. "Determinants of Democracy," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 158-183, December.
    8. Jonathan Isham & Michael Woolcock & Lant Pritchett & Gwen Busby, 2005. "The Varieties of Resource Experience: Natural Resource Export Structures and the Political Economy of Economic Growth," World Bank Economic Review, World Bank Group, vol. 19(2), pages 141-174.
    9. Francesco Caselli & Guy Michaels, 2013. "Do Oil Windfalls Improve Living Standards? Evidence from Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 208-238, January.
    10. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    11. Stephen Knack & Philip Keefer, 1995. "Institutions And Economic Performance: Cross-Country Tests Using Alternative Institutional Measures," Economics and Politics, Wiley Blackwell, vol. 7(3), pages 207-227, November.
    12. Rabah Arezki & Frederik van der Ploeg, 2007. "Can the Natural Resource Curse Be Turned Into a Blessing? The Role of Trade Policies and Institutions," IMF Working Papers 07/55, International Monetary Fund.
    13. Gylfason, Thorvaldur, 2001. "Natural resources, education, and economic development," European Economic Review, Elsevier, vol. 45(4-6), pages 847-859, May.
    14. Papyrakis, Elissaios & Gerlagh, Reyer, 2004. "The resource curse hypothesis and its transmission channels," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 181-193, March.
    15. Bulte, Erwin H. & Damania, Richard & Deacon, Robert T., 2005. "Resource intensity, institutions, and development," World Development, Elsevier, vol. 33(7), pages 1029-1044, July.
    16. Tobias Kronenberg, 2004. "The curse of natural resources in the transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(3), pages 399-426, September.
    17. Clague, Christopher & Keefer, Philip & Knack, Stephen & Olson, Mancur, 1999. "Contract-Intensive Money: Contract Enforcement, Property Rights, and Economic Performance," Journal of Economic Growth, Springer, vol. 4(2), pages 185-211, June.
    18. Mikesell, Raymond F, 1997. "Explaining the resource curse, with special reference to mineral-exporting countries," Resources Policy, Elsevier, vol. 23(4), pages 191-199, December.
    Full references (including those not matched with items on IDEAS)

    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:jso:coejbm:v:1:y:2013:i:3:p:154-165. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (COES&RJ LLC. Maintainer-Workplace-Name: Centre of Excellence for Scientific & Research Journalism - COES&RJ LLC Maintainer-Address: 10685-B Hazelhurst Dr., Houston, TX 77043, USA) or (). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.