ECONOMIC GROWTH AND SUSTAINABILITY IN AFRICAN OIL-EXPORTING COUNTRIES: A DYNAMIC PANEL ANALYSIS OF RESOURCES, ENERGY, AND INVESTMENT

Abstract

This study investigates the dynamic interplay between natural resources, carbon emissions (CO₂), oil exports, foreign direct investment (FDI), renewable energy, and economic growth (GDP) in four major African oil-exporting countries Nigeria, Angola, Gabon, and the Democratic Republic of the Congo over the period 2001–2021. Utilizing a dynamic panel regression model based on the Generalized Method of Moments (GMM), the analysis accounts for growth persistence through lagged GDP and addresses endogeneity and dynamic panel bias. Diagnostic checks, including the Arellano-Bond and Sargan/Hansen tests, validate the model's robustness. This study distinguishes itself by focusing on African oil-exporting economies and integrating both conventional and modern growth drivers, such as renewable energy and FDI quality. It adopts a hybrid econometric approach (GMM and FEM) to yield stronger insights and policy relevance, particularly in the post-COVID context. Notably, the study evaluates the sustainability of oil exports and the broader economic implications of resource dependence. Key findings reveal that lagged GDP, natural resources, and renewable energy significantly enhance economic growth, emphasizing the need for continued performance, effective resource use, and investment in clean energy. Conversely, oil exports negatively affect GDP, highlighting economic vulnerability to global oil price shocks. CO₂ emissions were not statistically significant. The study recommends economic diversification, renewable energy investment, and sustainable resource management to promote long-term, inclusive growth.