Main Article Content
Abstract
This study investigates the impact of natural resource dependence on inclusive growth in oilrich sub-Saharan African countries, addressing the resource curse paradox. The research
emphasizes the significance of institutional quality, including regulatory quality, control of
corruption, and government effectiveness, in moderating the effects of natural resource
exploitation on economic inclusivity. Using the cross-sectional augmented autoregressive
distributed lag (CS-ARDL) technique, the study analyzes data from Algeria, Congo Republic,
Gabon, Nigeria, South Africa, and Sudan over the period 1991-2022. The findings highlight
that natural resource rents and oil resource rents significantly influence inclusive growth, with
institutional quality playing a critical role in this relationship. Specifically, the results suggest
that weak institutions exacerbate the negative effects of natural resource dependence, leading
to increased income inequality and limited economic diversification. Conversely, strong
institutional frameworks can mitigate these adverse effects, promoting more equitable
economic development. This research provides valuable insights for policymakers and
development practitioners, emphasizing the need for robust institutional mechanisms to
ensure that natural resource wealth translates into broad-based economic benefits. The study
aligns with the UN’s Sustainable Development Goals, particularly those related to poverty
reduction, good governance, and inclusive growth. The results underscore the importance of
governance reforms and effective policy implementation in harnessing natural resources for
sustainable and inclusive development in sub-Saharan Africa.