The Effect of Natural Resources on Economic Growth in West Africa: The Mediating Role of Human Capital Disaggregation

https://doi.org/10.55214/jcrbef.v4i2.172

Authors

  • Chernor Momodu Bah School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei Province, PR China.
  • Mohamed Ouedraogo School of Economics, Huazhong University of Science and Technology, Wuhan, Hubei Province, PR China.

Abstract

The purpose of this paper is to examine the conditional impacts of natural resources on economic growth through human capital development. This study employs Dynamic Ordinary Least Squares (DOLS) and Vector Error Correction Model (VECM) methodologies in a panel dynamic analysis. The research demonstrates that natural resources and trade openness are the key contributors to lower economic growth. On the other hand, labour force, physical capital, and human capital development measures are effective in boosting growth. Furthermore, the estimates are much higher in the model of tertiary school enrolment (TSE) than in the model of secondary school enrolment (SSE). This means that TSE performs better than SSE in terms of augmenting natural resources to improve growth. From a policy aspect, governments in such nations should devise policies that will improve human capital. The emphasis must be on improving tertiary education quality.

Keywords:

Economic growth, Resource curse, Secondary education enrolment, Tertiary education enrolment, Natural resource endowments, Panel dynamic analysis.

How to Cite

Bah, C. M. ., & Ouedraogo, M. (2022). The Effect of Natural Resources on Economic Growth in West Africa: The Mediating Role of Human Capital Disaggregation. Journal of Contemporary Research in Business, Economics and Finance, 4(2), 27–42. https://doi.org/10.55214/jcrbef.v4i2.172
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