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How does institutional strength moderate the impact of mineral resources on economic growth? Evidence from sub-Saharan African countries

Author

Listed:
  • Issa Moh’d Hemed

    (Zanzibar University)

  • Masoud Mohammed Albiman

    (Institute of Tax Administration (ITA))

Abstract

This study examines the impact of different categories of mineral resources on the growth of sub-Saharan African (SSA) economies. The role of institutional strength in the link between mineral resources and economic growth is also considered. The paper employs a panel estimation technique of dynamic generalized method of moment (GMM) with 46 SSA countries covering the period from 1998 to 2018. This study is one among the few studies that assess the impact of special divisions of mineral resources on the economic growth of SSA countries. Many studies in the lesser developed countries have treated mineral resources in aggregate form when studying their impact on economic growth. The results depict that different categories of minerals have different impacts on growth. On the one hand, crude fertilizers, precious stones, and metalliferous minerals reduce economic growth. On the other, non-ferrous minerals promote economic growth. Institutional quality indicators enhance the positive role of all mineral resources categories on economic growth. The findings of this study support the argument that arrangements to extract and export minerals should be aligned with improving the institutional capacities and governance in the SSA countries. Governments and policy analysts are therefore encouraged to reform policies to ensure that the bounty of resources benefits the society and promotes social and economic development.

Suggested Citation

  • Issa Moh’d Hemed & Masoud Mohammed Albiman, 2025. "How does institutional strength moderate the impact of mineral resources on economic growth? Evidence from sub-Saharan African countries," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 27(1), pages 246-266, April.
    • Handle: RePEc:spr:jsecdv:v:27:y:2025:i:1:d:10.1007_s40847-024-00341-9
    DOI: 10.1007/s40847-024-00341-9
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