IDEAS home Printed from https://ideas.repec.org/p/agd/wpaper/20-104.html

Oil Resources, Deficit Financing and Per Capita GDP Growth in Selected Oil-Rich African Nations: A Dynamic Heterogeneous Panel Approach

Author

Listed:
  • Perekunah B. Eregha

    (Pan Atlantic University, Lagos, Nigeria.)

  • Ekundayo P. Mesagan

    (Pan Atlantic University, Lagos, Nigeria)

Abstract

This study examines the effect of oil resource abundance and deficit finance on per capita GDP growth in selected oil-rich African countries between 1980 and 2017. We analyse panel data from Algeria, Angola, Egypt, Libya, and Nigeria using the dynamic heterogeneous panel approach. Results show that oil production positively enhances GDP growth in the panel, Algeria, Angola, Egypt, and Libya, except in Nigeria. Oil rents adversely affect growth in Algeria, Angola, Egypt, and Libya, while net oil export negatively affects GDP growth in the short- and long-run in Africa, Angola, Egypt, Libya, and Algeria, but positive in Nigeria. Lastly, deficit finance is growth-enhancing in Algeria and Egypt, but growth-reducing in Libya, Nigeria, and Angola. It is therefore essential for these countries to invest their oil largesse in boosting the productive base of their economies to lower fiscal deficits during periods of crude oil price uncertainties and boost GDP growth.

Suggested Citation

  • Perekunah B. Eregha & Ekundayo P. Mesagan, 2020. "Oil Resources, Deficit Financing and Per Capita GDP Growth in Selected Oil-Rich African Nations: A Dynamic Heterogeneous Panel Approach," Working Papers of the African Governance and Development Institute. 20/104, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:20/104
    as

    Download full text from publisher

    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Oil-Resources-Deficit-Financing-and-Per-Capita-GDP-Growth-in-Selected-Oil-Rich-African-Nations.pdf
    File Function: Revised version, 2020
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N57 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Africa; Oceania
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

    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:agd:wpaper:20/104. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Asongu Simplice (email available below). General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    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.