Economic growth; Industrial development; Natural resources; Africa
The study examines the role of natural resources in promoting income growth and industrial performance among twenty-two (22) resource-rich African nations from 1999 to 2019. The explained regressors include economic growth and industrial development, while natural resources, control of corruption, foreign direct investment, gross capital formation and trade openness are the predictors. The employed panel ARDL estimation reveals that economic growth positively but insignificantly impacted short-term natural resource wealth. Again, natural resources negatively and significantly affect growth, implying the reality of the resource curse syndrome in the selected resource-rich African countries. Also, natural resources significantly but negatively impact long-run industrial development. The findings indicate that resource-rich African economies must channel their resource revenues into developing and boosting their industrial sectors.