Natural Resources Forum - 2023 - Debonheur

Received: 13 October 2022 Revised: 6 September 2023 Accepted: 11 September 2023
DOI: 10.1111/1477-8947.12341
ORIGINAL ARTICLE
The effect of natural resources rents on human

development in selected African countries
Kadagde Dalam Debonheur 1 | Désiré Avom 1 | Idrissa Ouedraogo 2
1
Faculty of Economics and
Management, CEREG, University of Abstract
Yaoundé II, Yaoundé, Cameroon This research analyses the effects of natural resource rents
2
Department of Economics, CEDRES, Thomas on human development in selected African countries. It
Sankara University, Saaba, Burkina Faso
focuses on a panel of 41 countries and covers the period
Correspondence 1996–2019. We used the ordinary least squares, quantile
Kadagde Dalam Debonheur, Faculty of
Economics and Management, CEREG,
regression, and the two-step system generalized method of
University of Yaoundé II, Yaoundé, Cameroon. moments (GMM) estimates. The results show that total nat-
Email: debonheurkadagde@yahoo.fr
ural resource rents have a negative effect on human devel-
opment. However, this negative effect is mitigated by food
imports, which ensure food security for the countries con-
cerned. Furthermore, taken individually, the effect of natu-
ral resource rents on human development is differentiated
according to their type: forestry and natural gas rents have
a positive effect on human development while, oil and coal
rents have a negative effect. After controlling for per capita
income and other macroeconomic, institutional, and
environmental factors, these results are robust. The results
suggest better management of natural resource rents,
economic diversification and industrial development,
environmental protection, food security, and the investment
of the natural resources rents in human capital development
to ensure long-term human development in the region.
KEYWORDS
Africa, human development, natural resources
1 | I N T RO DU CT I O N
Natural resource1 endowment can be a fundamental determinant of a country's socioeconomic development.

Indeed, the exploitation of natural resources can generate rents that can be used as investment in key sectors such
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2 DEBONHEUR ET AL.
as the accumulation of physical and human capital, economic diversification and, more generally, social well-being.
Natural resources are also essential for promoting the sustainable development of countries (Shao & Razzaq, 2022).
However, the problems posed by the exploitation of natural resources in economic studies are generally linked to
the question of their depletion and their consequences for the long-term economic growth of countries. According
to Missemer (2012), as early as 1865, William Stanley Jevons, for example, considered the depletion of British coal, a
vital resource for his economy, to be the cause of the country's declining growth. The depletion of natural resources
such as oil, gas, coal and timber, pollution of the air, land and oceans, and desertification are major obstacles to long-
term development. The increasing exploration of land and water resources by humans is having a significant impact
on the immediate environment, as human demand has outstripped the earth's capacity to produce resources and is
leading to environmental degradation (Khan, Hou, Zakari, Irfan, & Ahmad, 2022).
Environmental degradation harms the quality of life and seriously affects communities (Khan, Tan, Hassan, &
Bilal, 2022). Over the last few decades, thinking on economic development has been profoundly altered by two dif-
ferent but complementary concepts that have emerged in the literature: human development and sustainable devel-
opment. According to Alam et al. (2022), the relentless increase in global warming has prompted governments
around the world to commit to decarbonizing the environment.
Given that sustainable development aims to continuously improve living conditions over the long term through
economic development, social progress, and environmental protection (ecological dimension),2 this concept is now
inseparable from that of human development. This is why the sustainable development goals (SDGs) recognize
human development and sustainable development as complementary objectives.
The social, economic, and political development of nations is an undeniable requirement, and natural resources,
through the global increase in demand for energy and the income they generate, remain at the heart of the develop-
ment strategies of many countries around the world. Some natural resources can also represent a less polluting
source of energy. This is particularly true of natural gas, which meets around 20% of industrial energy needs and
accounts for 22% of electricity production worldwide (Cai & Magazzino, 2019).
African economies are dominated by the exploitation of natural resources, which contributes to the formation of
national wealth. The importance of natural resources for Africa's development is recognized in the African Union's
(AU) Agenda 2063, an African economic policy document in which natural capital3 represents an opportunity in
terms of monetary returns, means of combating poverty through the creation of decent jobs, investment in human
capital and physical capital (African Union Commission, 2015).
Almost 40% of the African countries have more than 30% of the world's non-energy mineral reserves and signif-
icant offshore oil production capacity. Central Africa, like most other regions of the continent, is indeed rich in natu-
ral resources. In the CEMAC4 countries for example, the average rate of oil revenue was 53.9% in 2014, 39.2% in
2015, and 30.7% in 2016 (authors based on BEAC,5 2016). The exploitation of natural resources in Africa should
serve to improve the well-being of present generations without compromising the possibility for future generations
to also improve their level of well-being.
Yet, Africa remains the only continent in the world with the most countries endowed with natural resources.
Paradoxically, however, it is also the continent where the standard of living is still very low. While the steady rise in
commodity prices in recent years has stimulated growth in African economies and raised hope of real development,
the continent has failed to make the most of its resources. The poor performance of resource-dependent economies
has reignited the debate on how to distribute the rents. In general, the recommended policy for resource-rich coun-
tries is to channel the rent into the accumulation of public sovereign wealth funds to support long-term consump-
tion. However, this policy risks delaying the development process in African countries where public and human
capital is still very weak to support economic growth. In this case, resource rents should instead be used as opportu-
nities to increase and improve human development. According to the UNDP (1990), human development is a process
that leads to a widening of the range of opportunities open to everyone, which implies the fulfillment of three essen-
tial conditions: living a long and healthy life, acquiring knowledge, and having access to the resources needed to
enjoy a decent standard of living. If these conditions are not met, many opportunities remain inaccessible.
DEBONHEUR ET AL. 3
Against a backdrop of low domestic production of basic consumer goods, many resource-exporting African
countries are heavily dependent on food and/or fuel imports to meet growing domestic demand. Despite the conti-
nent's high agricultural potential, many African countries continue to import a significant proportion of their food and
other agricultural products due to high population growth, low agricultural productivity, policy distortions, weak institu-
tional frameworks, and inadequate infrastructure (Rakotoarisoa et al., 2011). On the other hand, Nkurunziza et al. (2017)
note that heavy dependence on food and energy imports has negative effects on the macroeconomic performance of
vulnerable countries due to inflationary pressures, deterioration of foreign exchange reserves, and sharp fluctuations in
the terms of trade. According to data from the United Nations Conference on Trade and Development (UNCTAD),
despite strong growth in Africa's agricultural sector, in 2020 more than 80 percent of basic food imports absorbed by
African countries will come from outside the continent, that is around 60.5 billion dollars, compared with just 13.2 billion
purchased from other countries in the region, putting African countries well ahead of the rest.
The ongoing conflict between Russia and Ukraine is a major humanitarian crisis affecting millions of people
around the world, as well as a serious economic shock that is likely to have a continuing impact on the global econ-
omy. Both countries are major producers and exporters of food, minerals, and essential energy products. They
account for 30% of world exports of wheat, 20% of maize, mineral fertilizers and natural gas, and 11% of oil. The
duration and scale of the crisis are still uncertain, and the cereals agreements being called into question are likely to
further deteriorate the socioeconomic conditions of developing countries, which are particularly dependent on food
imports from these two countries.
Our work seeks to analyze the effects of natural resource rents on human development in 41 African
countries. Its contributions are manifold.
First, few studies have sought to assess the effects of natural resource rents on human development in African
countries, even though these countries, most of which are exporters of natural resources, and have a low human
development index compared with other developing countries.
Second, this analysis takes into account the differentiated effects that different types of natural resource rents
can have on human development. It distinguishes and identifies the types of natural resource rents that improve
human development in Africa. This research is therefore motivated by the paucity of research considering the differ-
ent types of natural resource rents in the context of African economies.
Third, the choice of these African countries is also motivated by the fact that many of them, being producers of nat-
ural resources such as oil, minerals, or metals, are also the biggest importers of agricultural products. Little research has
addressed the link between natural resources and human development, considering the importance of food imports as a
source of food security that the exploitation of resources generates. To our knowledge, this research is the first to
empirically identify natural resource rents as a source of stable food supply in African countries.
To analyze the effect of natural resource rents on human development in Africa and the role of food imports in
this effect, we use ordinary least squares (OLS), quantile regressions, and the two-step system generalized method
of moments (GMM) estimates. In addition to accounting for potential endogeneity in the model, the GMM also
accounts for the dynamic effects of the process of human development. This study also uses other determinants of
the human development index (HDI) such as the share of agriculture in GDP, public investment expenditure, infla-
tion, institutional quality, or carbon emissions to present a broader perspective.
The remainder of this article is organized as follows: Section 2 presents the literature review; Section 3 is
devoted to the presentation of the data and methodology; Section 4 presents the main results; and Section 5 con-
cludes while examining the economic policy implications that can be drawn from the main results.
2 | R E V I E W O F T H E LI T E R A T U R E
Economic history teaches us that the exploitation of natural resources in several countries has been highly
successful, thanks in particular to appropriate economic policies, institutions favorable to extractive activity (mature
4 DEBONHEUR ET AL.
democracy), and a super-cycle (sustained upward trend) in commodity prices that prevailed. In recent years, some
resource-rich countries have also experienced rapid positive economic growth and significant human capital accumu-
lation (e.g., Norway, Sweden, and Botswana6). However, at the end of the 1980s, a growing number of economists
questioned this positive view of natural capital on economic development. An abundance of literature shows that
abundance and/or dependence on natural resources is associated with a negative outcome in terms of social, politi-
cal, and economic development.
This negative effect is linked to the Dutch disease which refers to the paradoxical situation of the Dutch econ-
omy following the development of natural gas reserves in the Slochteren field in the 1960s. The boom in the
(exporting) energy sector was accompanied by a relative decline in other manufacturing sectors (Corden, 1984).
The result was a severe recession with a high current account surplus. This risk applies to countries that generate sig-
nificant revenues from the export of a natural resource. These revenues boost demand for goods and services, push-
ing up the price of services but not the price of goods, which are set globally (Beitone et al., 2019). The rise in the
relative price of services then directs capital into this sector, de-industrializing and impoverishing the country. In
addition, rising demand often leads to higher wage rates, which reduces the competitiveness of the (exporting) indus-
trial sector. This is also known as the “natural resources curse” or the “curse of raw materials.”
Sachs and Warner (1995), for example, found that natural resource abundance was negatively correlated with
economic growth. Similarly, Brunnschweiler (2008) found an inverse relationship between natural resources and eco-
nomic development. Venables (2016) also finds that resource-rich countries develop less than resource-poor coun-
tries. However, some research has presented an ambiguous link between natural resource rents and economic
growth. Asiedu et al. (2021) found a positive relationship between all-natural resources, natural gas, and long-term
economic growth, while mineral resource rents, oil rents, and forestry rents had negative connotations. Smith (2015),
assessing the impact of natural resource discoveries since 1950 on GDP per capita, finds a positive long-term effect
on GDP per capita levels following resource exploitation.
Other researchers have pointed out that the decline in economic growth in resource-rich countries is not due to
the abundance of natural resources, but rather to the abundance of “particular types” of natural resources. This is
particularly true for “concentrated or point” natural resources such as oil, minerals, or plantation crops. Isham et al.
(2005) found that countries rich in point natural resources experienced much slower growth during the 1980s and
1990s. Similarly, Angelier (2005) found that hydrocarbon-exporting countries as a whole experienced relatively low
growth rates compared with hydrocarbon-importing countries.
In many resource revenue-dependent developing countries such as those in Africa, the exploitation of natural
capital has not necessarily been synonymous with better economic performance. Amini (2018), for example, points
out that resource-rich African countries (Angola, Sudan, Nigeria, and Congo) perform worse in terms of per capita
income and quality of life than resource-poor East Asian economies (Japan, South Korea, Taiwan, Singapore, and
Hong Kong), which have achieved high standards of living equivalent to those in the West.
Auty (1993) has shown that the exploitation of raw materials has had a perverse effect, as the financial windfall
from these resources has become a factor of economic and social regression with sometimes dramatic conse-
quences. In economies abundantly endowed with natural resources, the exploitation of resources can also lead to
the underperformance of the agricultural sector, thus engendering the resource curse in the agricultural sector
(Chopra et al., 2022; Dorinet et al., 2020).
Using a country's comparative advantage for its development, particularly when it comes to diffuse natural
resources (e.g., wheat, maize, rice, and forests), can be a source of economic performance, especially as the risk asso-
ciated with the rent is relatively limited, if not non-existent. But when it comes to natural resources with high rents
(particularly concentrated resources), the risk of a loss of competitiveness in the economy, poor governance, a fall in
living standards or, more generally, the risk of dysfunction in the political, economic, and social system (sometimes
leading to extreme forms such as civil war) is tangible. Rosser (2006) notes that this literature on the resource curse
has been extremely influential. The idea that natural resources are harmful to development is widely accepted by
researchers and officials at international financial institutions such as the World Bank and the International Monetary
DEBONHEUR ET AL. 5
Fund (Bannon & Collier, 2003; Gelb, 1988; Sala-I-Martin & Subramanian, 2003), as well as by non-governmental
organizations (Oxfam International and Save the Children), the Publish What You Pay (PWYP) coalition, and the
Extractive Industries Transparency Initiative (EITI).
While research on the economic development of resource-rich countries shows that the relationship between
the exploitation of primary products and economic performance is essentially economic in nature, another group of
researchers has shown that the exploitation of resources can also encourage dysfunctional political systems which,
in turn, encourage poor economic performance. Analyses now consider the fact that the economic performance of
resource-rich countries is closely linked to the political structure of the state (Acemoglu et al., 2001;
Bhattacharyya & Huddler, 2010; Bulte et al., 2005; Collier & Hoeffler, 2000; Mehlum et al., 2006). In developing
countries, empirical research tends to show that resource exploitation is associated with poor institutional quality.
Jensen and Wantchekon (2004) showed that in Africa, countries endowed with natural resources were more likely
to be authoritarian and to experience democratic breakdown after democratic transition than countries without nat-
ural resources.
Subsequently, several researchers have examined the link between natural resources and human development
(Avik & Tuhin, 2019; Cockx & Francken, 2014, 2016; Ouedraogo, 2015; Papyrakis & Gerlagh, 2004; Pérez &
Claveria, 2020; Pineda & Rodríguez, 2011; Stijns, 2006). Gylfason (2001, 2008a) argues that natural capital intensity
crowds out human capital (as well as social and physical capital), implying a negative effect on education. Cabrales
and Hauk (2010) point out that the effect of natural resources, in particular oil and gas rents, on schooling depends
on the quality of institutions. They argue that natural resource abundance may blunt private and public incentives to
save and invest in real capital no less than in human capital, thereby weakening financial institutions and reducing
economic growth. Furthermore, they argue that natural resource wealth is a fixed factor of production that hampers
economic growth potential by causing a growing labor force and a growing stock of capital to run into diminishing
returns. Ouedraogo (2015) analyses the effect of mining resources on human development measured by the human
development index and its monetary and non-monetary components in Burkina Faso. Using time series and descrip-
tive statistics, he finds that over the period 1997–2012, mining resources measured by mining rent as a percentage
of GDP have a positive and significant effect on the monetary and non-monetary secondary and tertiary education
components of the human development index. Examining the production of natural resources in Colombia, Mejía
(2020) finds that mining increases primary school enrolment and reduces the drop-out rate throughout the school
cycle. Using panel data over a long period, from 1970 to 2011, Kim and Lin (2018) show that dependence on natural
resources positively affects education but worsens health. In countries with poor governance, mining rents tend to
influence career choices, particularly through an increase in enrolment in rent-seeking professions (Ebeke
et al., 2015).
Over the last few decades, the role of natural resources and sustainable development as fundamental aspects of
human development have received considerable attention in the literature. Natural resources are seen as necessary
inputs for production, and the quality of the environment is a key determinant of well-being. Although the first
human development reports did not explicitly consider the role of the environment in improving people's living con-
ditions over the long term, sustainable development is increasingly seen not as a limit to economic growth but as a
source of enhanced human development. The quality of the environment has always been an important component
of quality of life (Khan, Hou, Zakari, Tawiah, & Ali, 2022).
Research shows that human capital is closely linked to the natural environment. For Ganda (2022b), human capi-
tal supports the adoption of green technologies through research and development, encourages public ecological
awareness of ways to preserve the natural environment, and motivates the transformation of the economic system
by accelerating the growth of industries. The poor quality of the natural environment in many poor countries tends
to hinder education, agriculture, and industrialization, thus slowing down the economic growth of these countries
(Ezeala-Harrison, 2015).
Other studies have also shown that energy efficiency is essential for reducing carbon emissions and stimulating
economic activity, leading to economic growth and sustainable development in countries (Akram et al., 2020;
6 DEBONHEUR ET AL.
Rajbhandari & Zhang, 2018). According to Khan, Zakari, Zhang, Dagar, and Singh (2022), energy sustainability is not
only an opportunity to develop economies but also a prerequisite to meet the world's growing energy demand and
reduce the carbon footprint. However, the relationship between natural resource rents and carbon emissions has
always produced mixed results, particularly with regard to the impact of corruption on environmental
sustainability (see e.g., Ganda, 2020a).
Sustainable development is a form of development that allows current generations to generate economic and
social gains without compromising the opportunities of future generations or altering the long-term biological capac-
ity of ecosystems. It is therefore imperative that countries dependent on the exploitation of natural resources invest
in other wealth-generating assets (diversification of the economy) to replace the income from the natural resources
sector, which is tending to run out and preserve the environment. Dutch disease, a phenomenon that undermines
the competitiveness of non-resource market sectors, particularly the industrial sector, can slow down not only eco-
nomic growth but also investment, and compromise the objectives of diversifying the economy, halting environmen-
tal degradation and, ultimately, improving human development. Solving the problem of Dutch disease is therefore a
necessary condition for effective environmental management. As Chen et al. (2023) point out, eliminating Dutch dis-
ease is a prerequisite for sustainable development.
Instead, other work has suggested that a financial sector that allocates the economy's natural resources to the
acquisition of high-level human capital directed in particular at ecological education, technological innovation, and
sustainable energy promotes the acceleration of economic development (see e.g., Ganda, 2021; Ganda, 2022a;
Zahoor et al., 2022). Zakari and Khan (2022) in examining the role of green finance in achieving environmental sus-
tainability (in terms of investment in environmental protection) have shown that green finance improves environ-
mental sustainability. Khan, Duojiao Tan, Azam, and Hassan (2022) in a study on the determinants of the ecological
footprint (environmental quality) in Germany also suggest in one of their recommendations the intensification of
green budgeting.
Inspired by this rich literature, we are analyzing the effects of natural resource rents on human development in
certain African countries. Our research thus aims to contribute to the wider debate on the natural resource curse
in Africa.
3 | D A TA , M OD EL , A N D E M P I R I CA L ST R A TE GI ES
This section presents the data, the empirical model, and the estimation strategies.
3.1 | Data
The data used in this research are annual. Most of these data are from the World Development Indicators (WDI)
database of the World Bank (2023a). The variables used to measure institutional quality are also taken from the
Worldwide Governance Indicators (WGI) database of the World Bank (2023b). This database takes into account six
dimensions of governance from 1996 onwards (Kaufmann et al., 2010). The six dimensions of governance are as fol-
lows: voice and accountability, political stability and absence of violence, government effectiveness, regulatory qual-
ity, rule of law, and control of corruption.7 Given the availability of data, the study covers 41 African countries (see
Table A1 for the list of countries) and the period 1996–2019. The choice of variables in this paper is based on the
relevant literature (Acar, 2017; Carmignani & Avom, 2010; Costantini & Monni, 2008; Raheem et al., 2018).
We consider the HDI as the dependent variable. Since economic growth alone cannot explain countries' devel-
opment progress, the HDI was created to remedy this shortcoming. It is calculated based on three key dimensions of
human development: education, health, and standard of living. The index ranges from 0 to 1, with 0 being considered
DEBONHEUR ET AL. 7
the lowest level of human development and 1 the highest. We use the HDI from the United Nations Development
Programme (UNDP, 2020) database available on its website.8
Our independent variables are the level of economic development represented by the logarithm of GDP per
capita, the share of the agricultural sector in GDP, food imports, the quality of institutions, ores and metals exports,
and natural resource rents. We use the World Bank (2023a) definition of natural resource rents, which is represented
by total natural resource rents. According to the World Bank (2023a), total natural resource rents are the sum of oil,
natural gas, coal, minerals, and forestry rents as a proportion of GDP. The rents derived from the various natural
resources as a percentage of GDP are also taken individually, namely the oil rent, the natural gas rent, the coal rent,
the minerals rent, and the forestry rents. The other control variables included in the analysis are trade openness,
measured as the sum of exports and imports relative to GDP, public investment measured by gross fixed capital for-
mation (GFCF), and macroeconomic stability measured by inflation. A full description of the variables is presented in
Table A2 in the Appendix.
3.2 | Empirical model and estimation strategies
We first use quantile regression (QR) and the ordinary least squares (OLS) method before implementing the general-
ized method of moments (GMM) proposed by Arellano and Bond (1991) and developed by Arellano and Bover
(1995) and Blundell and Bond (1998). The generalized method of moments is becoming increasingly popular in eco-
nomic research. It is widely known and used to generate relatively efficient estimators. The GMM estimator is used
in particular because of its ability to deal with endogeneity problems and to take dynamic effects into account
(Roodman, 2009a). The GMM estimator can also be used when the number of data periods available, T (24 years), is
smaller than the size of the sample, N, which is large (41).
Also, to reduce possible biases, we use the GMM system estimate developed by Blundell and Bond (1998),
which is more efficient than the difference GMM (Arellano & Bond, 1991; Blundell & Bond, 1998). We use the two-
step system-GMM estimator while incorporating Windmeijer's (2005) correction for standard errors. This estimator
uses an optimal weighting matrix for the moment conditions. It weights the instruments with a consistent estimate
of their covariance matrix or, more precisely, weights the moments in inverse proportion to their variance and covari-
ance, so that highly correlated instruments receive less weight in the estimation process (Roodman, 2009a, 2009b).
To further facilitate reproducibility, human development is predetermined in the list of variables. Food imports,
total natural resource rents, GDP per capita, openness to trade, agriculture, inflation, and gross fixed capital forma-
tion are exogenous. Institutional quality and total natural resource rents are endogenous. The first- and second-order
lags of the endogenous variables are used as instruments.
To test the validity of the instruments, we use the Hansen test for overidentifying restrictions. Since the prob-
lem of the proliferation of instruments is likely to vitiate Hansen's test, we also used a test to check for its absence.
This compares the number of instruments to the number of countries, with the former being less than the latter.
Arellano and Bond's (1991) AR (1) and AR (2) tests are used for first- and second-order serial autocorrelation.
Thus, to empirically test the effects of natural resource rents on human development, we model the HDI as a
function of natural resource revenues as a percentage of GDP, food imports, and a set of control variables. Following
Nkurunziza et al. (2017), we define our baseline model as follows:
hdiit ¼ αo þ δ1 hdiit1 þ δ2 tnrrit þ δ3 instit þ δ4 ðtnrr foodmÞit1 þ δV it þ εit : ð1Þ
Where the dependent variable hdi is the HDI in country i at time t; tnrr, inst are, respectively, the total natural
resource rents and the institutional quality. tnrr*foodm represents the interaction term between natural resources
and food imports. It captures the indirect effect of natural resources on human development through food imports.
V is a set of control variables including log GDP per capita, trade openness, agriculture, inflation, gross fixed capital
8 DEBONHEUR ET AL.
formation, and εit is an error term including fixed effects and idiosyncratic shocks. The inclusion of the autoregressive
term AR (1) (hdiit1) is justified by the dynamic nature of human development: past human development influences
its current level.
The effect of natural resource rents on human development may also depend on food imports into African coun-
tries, hunger being a brake on human development. Natural resource rents can improve human development if they
enable countries to import food and ensure food security. This effect can be expressed by deriving tnrr in relation to
foodm in model 1 [Equation (1)]. We then obtain:
∂tnrr it
¼ δ1 þ δ4 foodmit ð2Þ
∂foodmit
4 | EMPIRICAL RESULTS AND DISCUSSION
This section presents the main empirical results and the discussion. In particular, it presents the sections relating to
the cross-sectional dependence test, the correlation matrix, the descriptive statistics of the variables, the stationarity
test, as well as the results obtained by quantile regression, the OLS method, and the two-step system GMM.
4.1 | Cross-sectional dependence
Cross-sectional dependence could be a factor that significantly distorts the empirical results of unit root tests on
panel data. It is therefore essential to carry out the cross-sectional dependence test beforehand to confirm the pres-
ence or otherwise of cross-sectional dependence. In the case where N > T (N = 41 countries and T = 24 years), the
CD test proposed by Pesaran (2021) is appropriate for verifying cross-sectional dependence between panel series.
We perform the Lagrange multiplier LM test of Breusch and Pagan (1980) and the cross-sectional dependence CD
test of Pesaran (2021). The results are presented in Table 1.
The LM and CD test statistics are 5500.9 and 19.487, respectively, both significant at the 1% level. Our cross-
sectional dependence test results suggest rejection of the null hypothesis of cross-sectional dependence.
4.2 | Correlation matrix
To avoid multiple collinearities between variables that could potentially provide erroneous results, we analyze the
correlation involving the main variables.
The results indicate a negative association between total natural resource rents, food imports, the share of agri-
culture in GDP, ores and metal exports, inflation, and the HDI. On the other hand, correlation analysis shows a posi-
tive association between the quality of institutions, the level of GDP per capita, public investment expenditure, trade
openness, and the HDI. Table 2 presents the results of the correlation matrix between the variables.
TABLE 1 Panel cross-sectional dependence tests.
Statistics p-value
Breusch and Pagan LM (1980) 5500.9*** 0.0000
Pesaran CD (2021) 19.487*** 0.0000
***Denote 1% significance level.

Source: Authors.
DEBONHEUR ET AL.
TABLE 2 Correlation between HDI and control variables.
Variables (1) (2) (3) (4) (5) (6) (7) (8) (9)
(1) hdi 1.000
(2) Total resources rent 0.134*** 1.000
(3) Food imports 0.124*** 0.307*** 1.000
(4) Institutional quality 0.514*** 0.479*** 0.063* 1.000
(5) Log GDP per capita 0.879*** 0.040 0.129*** 0.473*** 1.000
(6) Gross fixed capital formation 0.319*** 0.150*** 0.218*** 0.061** 0.313*** 1.000
(7) Agriculture value added 0.661*** 0.007 0.153*** 0.42*** 0 .748*** 0.232*** 1.000
(8) Trade openness 0.447*** 0.128*** 0.133*** 0.38*** 0.521*** 0.306*** 0.481*** 1.000
(9) Inflation 0.065** 0.144*** 0.093*** 0.078** 0.021 0.008 0.033 0.031 1.000
Note: Significant at 1% ***; 5% **; 10%*.

Source: Authors based on WDI and WGI data from the World Bank (2023a, 2023b) and UNDP (2020).
9
10 DEBONHEUR ET AL.
The results in Table 2 show a low correlation between the independent variables, suggesting that there is no
problem of multicollinearity between them. This result is confirmed by the calculation of the variance inflation factor
(VIF) in Table A3 in the Appendix. Table A3 shows that all the independent variables have a VIF of less than 10, which
allows us to confirm that the independent variables used are not affected by multicollinearity. This result therefore
suggests that the results of the regression estimates are not affected by multicollinearity (see e.g., Pedace, 2013;
Wold et al., 1984).
Figure 1 presents the correlation between natural resource rents and human development in Africa over the
period 1996–2019. It shows a negative correlation between natural resource rents and human development. This
means that countries that are rich in natural resources overall tend to have a low level of human development.
Figures A1–A6 (in the Appendix) present the correlations between ores and metals exports (% merchandise
exports), coal rents (%GDP), forestry rents (%GDP), mineral rents (%GDP), natural gas rents (%GDP), oil rents (%
GDP), and human development in Africa over the period 1996–2019. There is a negative correlation between ores
and metal exports (Figure A1), forest rents (Figure A3), mineral rents (Figure A4), and human development in Africa
over the period 1996–2019, indicating that countries with these natural resources tend to have a low level of devel-
opment. In contrast, there is a positive correlation between coal rents (Figure A2), natural gas rents (Figure A5), oil
rents (Figure A6), and human development in Africa over the same period. This means that wealth in these natural
resources is associated with high human development in African countries over the period 1996–2019.
4.3 | Descriptive statistics
Table A4 in the Appendix presents the descriptive statistics for the different variables. On average, over the period
1996–2019, the HDI in the countries in the sample is 0.505 on a scale from 0 to 1, and total natural resource rents
represent 9.935% of GDP. As for the rents from natural resources taken individually, the rent from coal represents
an average of 0.126% of GDP, while those from natural gas, minerals, forests, and oil represent 0.209%, 1.028%,
4.711%, and 3.841% of GDP, respectively.
In terms of control variables, GDP per capita is estimated at 2161,439 constant dollars. Institutional quality is
0.527, which represents low institutional quality. Food imports account for an average of 17.52% of GDP. Gross
fixed capital formation is estimated at an average of 20.711% of GDP, while value added in the agricultural sector is
.8
SYC
MUS
.7
Human development index (hdi)
TUN DZA
ZAF EGY GAB
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM COG
.5 MDG CMR MRT NGA
ZMB AGO
LSO ZWE
BEN
CIV
TZA TGO UGA
SDN
SEN
GMB RWA
.4 GIN ETH
MLI BFA MOZ
SLE BDI
CAF
NER
.3
0 10 20 30 40
Natural resource rents (% GDP)
FIGURE 1 Correlation between natural resource rents and human development in Africa. Source: Authors.
Quantile regression at 95% confidence level. Source: Authors. FIGURE 2
11
DEBONHEUR ET AL.
12 DEBONHEUR ET AL.
estimated at 20.068%. The degree of openness to trade is 65.17%, compared with 11.805% (of GDP) for mineral
and metal exports.
4.4 | Stationarity tests
To avoid spurious regressions, we carry out stationarity tests. We apply the traditional unit root tests: The
Augmented Dickey-Fuller (ADF) test, the KPSS test, and the Philips-Peron (PP) test.
Table A5 the in Appendix presents the results of the stationarity tests with a specification with a trend and with-
out a trend. Our results show that the various variables are stationary in level. The total natural resource rent, food
imports, coal rent, and oil rent are not stationary in the KPSS test with a specification without a trend, whereas they
are all stationary in the KPSS test with a specification with a trend.
4.5 | Main results from the quantile regression
Quantile regressions are econometric tools whose purpose is to describe the impact of an explanatory variable on a
dependent variable. They provide a richer characterization and description of the data than traditional linear regres-
sions, as they can show different effects of the independent variables on the dependent variable depending on the
spectrum of the dependent variable. They provide a more accurate description of the distribution of a variable of
interest conditional on its determinants than a simple linear regression that focuses on the conditional mean. They
are also flexible for modeling data with heterogeneous conditional distributions. Median regression is more robust to
outliers than ordinary least squares (OLS) mean regression. For Gerelmaa and Kotani (2016), not only are the
assumptions required by conditional mean models unrealistic for social phenomena but also, when we analyze the
effect of independent variables, the conditional mean method cannot be extended to a location other than the cen-
tral location.
In this research, we use nine different quantiles: the 10th, 20th, 30th, 40th, 50th, 60th, 70th, 80th, and 90th
quantiles which are increasing and represent different levels of the HDI. As the countries in the sample have differ-
ent HDI values, quantile regression thus allows us to isolate and capture the impact of natural resource rents on dif-
ferent levels of HDI values (see e.g., Sinha & Sengupta, 2019). The graphical results from the quantile regressions are
presented in Figure 2.
Empirical results show that total natural resource rents have a negative and significant effect on the HDI at the
10th, 20th, 30th, 40th, 50th, and 60th quantiles. This negative effect remains very weak in the 70th quantile. This
result implies that the negative effect of natural resource rents on human development is stronger for countries with
low HDI levels (25th, 30th, and 40th quantile) and those with medium HDI levels (40th, 50th, and 60th quantile).
Consequently, as we move to higher HDI levels (80th and 90th quantile), natural resource rents appear to have no
effect on HDI.
Food imports have a negative and significant effect on human development in the 10th, 20th, 30th, and 90th
quantiles.
The level of GDP per capita and public investment expenditure have a positive and highly significant effect on
human development in all the quantiles specified (10th, 20th, 30th, 40th, 50th, 60th, 70th, and 90th). As for institu-
tional quality, it has a statistically significant and positive effect in all quantiles except the 10th and 90th quantiles,
where it appears to have no effect.
However, these results may suffer from certain limitations due in particular to the potential endogeneity of the
variables. Nkurunziza et al. (2017) point out that there could, for example, be a reverse causality between human
development and natural resources, as countries with low human development could lack the technology and
resources that would help them diversify their economies and move away from heavy dependence on the
DEBONHEUR ET AL. 13
exploitation of natural resources. Human development can be seen as a determinant of commodity export and
import dependence. In addition, as discussed in Section 2, countries with natural resource rents can also use them to
invest in human capital development and improve their human development.
To deal more effectively with the potential endogeneity problems of the variables, we use the two-step GMM
system estimator (see Roodman, 2009a, 2009b). According to Roodman (2009a), the GMM estimator is an instru-
mental variable method that can be used in dynamic models (existence of an autoregressive-AR term) and when the
sample size (N) is greater than the study period (T).
4.6 | Main results from OLS and two-step system GMM
To determine whether the effects of natural resource rents on human development depend on the “type” of natural
resources, we then decompose the total natural resource rent into its different components (oil, gas, coal, mining,
and forestry rents). Table 3 presents the results obtained by OLS with robust standard errors and Table 4 presents
the results obtained by the two-step system GMM estimator with Windmeijer (2005) correction for standard errors.
In Table 4, we first check the validity of all diagnostic tests according to the modern application of the GMM
estimator. The results of the first- and second-order autocorrelation tests are in line with theoretical expectations. In
other words, the null hypothesis of no autocorrelation is rejected by the AR (1) test statistic, while it is accepted
in the case of the AR (2) test. The Hansen test for over-identification restrictions accepts the null hypothesis that
there is no correlation between institutional quality, natural resource rents, and the error terms in Equation (1), which
confirms the validity of the set of instruments. Furthermore, the problem of instrument proliferation is not a concern,
thus confirming the validity of the Hansen test. Finally, the lagged independent variable hdi (t-1) is positive and sig-
nificant, which further justifies the choice of a dynamic model of human development: the process of human devel-
opment improves slowly over time and past values of human development affect current values.
Total natural resource rents negatively affect human development in both estimators (Tables 3 and 4). This result
confirms those obtained by Carmignani and Avom (2010). This can be explained by the fact that the rent from the
extraction of natural resources defies intergenerational equity, particularly in terms of resource availability. The con-
tinued exploitation of natural resources limits growth and hence development in these countries. Atangana (2019)
has also shown that rents from the exploitation of natural resources are at the origin of the volatility of GDP per
capita, which translates into a low level of accumulation of human and physical capital. Gylfason (2008b) indicates
that abundant natural resources may weaken incentives to accumulate human capital, even if the rent stream from
the resources may enable nations to give a high priority to education. In addition, to illustrate the negative effects of
natural resources rents on human development, he highlighted that in Equatorial Guinea, following oil discoveries,
the purchasing power of per capita GDP increased by a factor of six or seven from 1990 to 2005, while life expec-
tancy plunged from 46 years to 42. One child in five dies before reaching its fifth birthday. More than half of the
population of 500,000 lives on less than a dollar a day. Our empirical result globally confirms the hypothesis of
the natural resources curse in Africa. However, it clashes with the result found by Dialga and Ouoba (2022) who
showed a positive and significant effect of extractive resources on the HDI.
After decomposing natural resource rents into their component parts, we obtain in Tables 3 and 4 a negative
effect of coal and oil rents on human development. This result is consistent with that obtained by Cockx and
Francken (2016) who showed that the effect of the resource curse on education comes mainly from concentrated
natural resources. Blanco and Grier (2012) also argued that oil exports have a negative and significant long-term
effect on human capital development. However, this result contradicts those of Cotet and Tsui (2013) who argue
that oil wealth has led to a significant reduction in infant mortality rates particularly in oil-rich countries.
The rents received from other natural resources (natural gas and forests in particular) contribute to improving
human development. The exploitation of clean (less polluting) natural resources such as natural gas has a positive
impact on human development. This result can be explained by the fact that the use of this energy source is less
14 DEBONHEUR ET AL.
damaging to the environment and therefore to people's quality of life. This result is in line with those of Magazzino
et al. (2021) who, assessing the causal link between natural gas consumption and economic growth in Germany and
Japan, show that increasing gas supplies should make it possible to gradually replace the most polluting fuels (oil
and coal) without compromising environmental objectives. It is also similar to that obtained by Sinha and Sengupta
(2019), who point out that these rents promote human development. Ceteris paribus, the rent from these natural
resources (natural gas and forests) helps to build national wealth and thus contributes to the overall development of
countries. This conclusion is in line with that of Stijns (2006), who shows that countries that extract more natural
resources can invest more in human capital accumulation.
By considering the interaction between natural resource rents and food imports, the negative effect of
natural resource rents is mitigated. This suggests that the exploitation of natural resources generates significant
revenues that enable countries to pay their food import bills. The revenues generated by the exploitation of natural
resources thus enable countries to meet their high and growing food import bills and solve the problem of food
insecurity, thereby improving human development. The results obtained in Table 4 indicate that
∂tnrr
δ1 ¼ 0:0421 et δ4 ¼ 0:00218, so ∂foodm ¼ 0:0421 þ 0:00218 foodm. In the empirical literature, researchers
generally choose between the median and the mean of the conditional variable (in this case food imports)
to determine the precise size of the conditional effect. In this research, we propose to choose the mean of food
imports to calculate this magnitude. According to Table A4 (in the Appendix), on average, over the period
1996–2019, the total natural resource rent represents 9.935% of GDP, which implies that
∂tnrr
∂foodm ¼ 0:0421 þ 0:00218 9,935,that is 0:0204417. Food imports therefore mitigate the negative effect of nat-
ural resource rents on human development in Africa. This result is in line with the conclusions of Rakotoarisoa
et al. (2011).
Physical capital, represented by gross fixed capital formation, has a positive and significant effect on the HDI.
Investment expenditure increases human development because it serves as an indicator of the proportion of public
revenue devoted to improving public services such as schools, hospitals, housing, and productive capacity infrastruc-
ture. This result is in line with those obtained by Tiba and Frikha (2019) and Shao and Yang (2014) who stressed the
importance of sufficient investment in human capital to escape the resource curse.
The positive and highly significant sign of GDP per capita in both models indicates that richer countries may be
able to afford better quality education and health. Income growth in African countries is therefore necessary to
improve human development. Similarly, the effect of the quality of institutions is positive and highly significant in
both models, suggesting that countries with more effective institutions have higher human development indicators.
This result is in line with that obtained by Dialga and Ouoba (2022), who stress that improving the quality of institu-
tions must be a prerequisite for the exploitation of extractive resources in order to support human development.
4.7 | Robustness analyses
The robustness analysis involved using the two-step system GMM method to estimate the effect of natural
resources on human development by adding an additional control variable, namely carbon dioxide (CO2) emissions, a
factor that severely affects human development and which makes up a large proportion of greenhouse gases
(GHGs). The inclusion of this variable is also motivated by the fact that many developing economies have experi-
enced rapid growth in carbon emissions in recent decades (see, e.g., Ganda, 2018).
The results summarized in Table 5 show a persistent phenomenon of negative effects of natural resource rents
on human development in Africa and its mitigation by food imports promoting food security and hence human devel-
opment. This conclusion is consistent with our previous results (see Tables 3 and 4).
The individual results for natural resource rents are also robust (see Table 5): the effect of natural resource rents
on human development is differentiated according to their type. Forestry and natural gas rents improve human
development, while oil and coal rents worsen human development.
TABLE 3 Natural resource rents on human development in Africa: OLS estimates.
Estimation method: OLS estimates
Dependent variable: human development index (HDI)

DEBONHEUR ET AL.
Variables (1) (2) (3) (4) (5) (6) (7) (8)

Food imports 0.0496** 0.128*** 0.0356* 0.0174 0.0267 0.0401** 0.0367* 0.0395*
(0.0203) (0.0246) (0.0206) (0.0213) (0.0202) (0.0200) (0.0190) (0.0230)
Institutional quality 1.419*** 1.485*** 2.693*** 2.720*** 2.663*** 3.213*** 0.769* 2.691***
(0.446) (0.449) (0.404) (0.399) (0.403) (0.405) (0.459) (0.411)
Log(GDP per capita) 10.26*** 10.15*** 10.21*** 10.60*** 10.23*** 9.878*** 11.00*** 10.16***
(0.327) (0.333) (0.331) (0.397) (0.333) (0.327) (0.342) (0.359)
Trade openness 0.00634 0.000520 0.0155*** 0.0183*** 0.0161*** 0.0107* 0.00753 0.0145**
(0.00590) (0.00584) (0.00597) (0.00624) (0.00596) (0.00574) (0.00559) (0.00614)
Value added of agriculture 0.0263 0.0325* 0.0216 0.0246 0.0180 0.0102 0.0375* 0.0118
(0.0194) (0.0196) (0.0192) (0.0193) (0.0187) (0.0185) (0.0195) (0.0218)
Gross fixed capital formation 0.110*** 0.105*** 0.0945*** 0.108*** 0.0978*** 0.0785*** 0.124*** 0.0975***
(0.0166) (0.0165) (0.0171) (0.0173) (0.0171) (0.0161) (0.0165) (0.0178)
Inflation 0.0264 0.0191 0.0283 0.0265 0.0273 0.0251 0.0227 0.0289
(0.0163) (0.0137) (0.0188) (0.0187) (0.0186) (0.0185) (0.0149) (0.0190)
Total resource rents 0.113*** 0.230***
(0.0235) (0.0256)
Total resource rents * Food imports 0.00957***
(0.00181)
Coal rents 0.490**
(0.216)
Forest rents 0.119**
(0.0479)
Mineral rents 0.0688
(0.0547)
15
(Continues)
(Continued)
16
TABLE 3
Estimation method: OLS estimates
Variables (1) (2) (3) (4) (5) (6) (7) (8)

Natural gas rents 1.809***
(0.293)
Oil rents 0.182***
(0.0245)
Ores and metals exports 0.00533
(0.0106)
Constant 21.62*** 19.90*** 21.03*** 24.83*** 21.62*** 18.97*** 27.96*** 20.90***
(2.688) (2.753) (2.692) (3.272) (2.710) (2.643) (2.791) (3.042)
Number of countries 41 41 41 41 41 41 41 41
Observations 836 836 837 837 837 834 837 817
R-squared 0.795 0.800 0.790 0.791 0.790 0.801 0.802 0.787
Prob > F 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000
Note: Coefficients significant at 1% ***, 5% **, and 10% *.

Source: Authors.
DEBONHEUR ET AL.
TABLE 4 Natural resource rents and human development in Africa: Two step system-GMM estimates.
Estimation method: Two-step GMM system estimates

DEBONHEUR ET AL.
(1) (2) (3) (4) (5) (6) (7) (8)

(Human development index)t-1 0.871*** 0.862*** 0.863*** 0.872*** 0.970*** 0.956*** 0.867*** 0.881***
(0.0216) (0.0278) (0.0179) (0.0240) (0.00787) (0.0160) (0.0246) (0.0324)
Food imports 0.0118 0.0278 0.00897 0.0932 0.00253 0.00434 0.0108 0.00702
(0.0125) (0.0197) (0.00793) (0.215) (0.00412) (0.00385) (0.00980) (0.0160)
Institutional quality 0.0699 0.0389 0.256** 0.232** 0.175* 0.221** 0.0672 0.169*
(0.232) (0.249) (0.0989) (0.111) (0.0933) (0.0995) (0.291) (0.0931)
Log(GDP per capita) 1.225*** 1.426*** 1.397*** 1.146*** 0.276** 0.399* 1.466*** 1.220**
(0.280) (0.368) (0.307) (0.414) (0.125) (0.201) (0.371) (0.518)
Trade openness 0.000460 0.00191 0.000919 0.00299 0.000548 0.000502 0.00164 0.00325*
(0.00296) (0.00436) (0.00172) (0.00522) (0.00161) (0.00166) (0.00384) (0.00182)
Value added of agriculture 0.00482 0.00388 0.00554** 0.00211 0.00266 0.00383 0.00134 0.0227*
(0.0118) (0.0148) (0.00259) (0.00983) (0.00481) (0.00508) (0.0146) (0.0128)
Gross fixed capital formation 0.0155** 0.0171** 0.0163* 0.0194* 0.00651* 0.00693 0.0188** 0.0196*
(0.00650) (0.00834) (0.00836) (0.0113) (0.00366) (0.00578) (0.00727) (0.0109)
Inflation 0.00212 0.000544 0.00930* 0.00446 0.000224 0.000804 0.00207 0.0103*
(0.00190) (0.00215) (0.00465) (0.00442) (0.00104) (0.00123) (0.00227) (0.00582)
Total resource rents 0.0421** 0.0570**
(0.0193) (0.0280)
Total resource rents * Food imports 0.00218*
(0.00126)
Coal rents 0.193***
(0.0555)
Forest rents 0.0621**
(0.0255)
17
(Continues)
(Continued)
18
TABLE 4
(1) (2) (3) (4) (5) (6) (7) (8)

(0.0418)
Natural gas rents 0.127***
(0.0316)
Oil rents 0.0263**
(0.0122)
Ores and metals exports 0.0689***
(0.0230)
Constant 1.909 2.404 2.355 1.243 0.117 0.139 3.454 3.289
(1.558) (2.269) (1.804) (2.279) (0.773) (0.910) (2.104) (2.135)
Observations 808 808 809 809 809 806 809 709
Number of instruments 32 35 36 28 22 18 32 28
AR(1) 0.001 0.002 0.001 0.001 0.000 0.000 0.001 0.001
AR(2) 0.554 0.544 0.339 0.603 0.661 0.571 0.647 0.457
Hansen test p-value 0.106 0.127 0.126 0.167 0.344 0.236 0.146 0.145
Note: Robust standard errors in parentheses.

***p < 0.01; **p < 0.05; *p < 0.1.Source: Authors.
DEBONHEUR ET AL.
TABLE 5 Natural resource rents and human development index in Africa: GMM system estimates with additional control variable (CO2 emissions).
Dependent variables: human development index

DEBONHEUR ET AL.
(1) (2) (3) (4) (5) (6) (7) (8)

(Human Development Index)t1 0.892*** 0.893*** 0.895*** 0.943*** 0.986*** 0.929*** 0.880*** 0.898***
(0.0205) (0.0176) (0.0126) (0.0158) (0.0135) (0.0188) (0.0201) (0.0193)
Food imports 0.0113 0.0570* 0.00619 0.00130 0.0491* 0.00537 0.0108 0.00401
(0.00958) (0.0289) (0.00714) (0.00442) (0.0274) (0.00383) (0.00872) (0.0103)
Institutional quality 0.660*** 0.440*** 0.284** 0.308** 0.238** 0.267** 0.297*** 0.241**
(0.196) (0.133) (0.140) (0.133) (0.108) (0.100) (0.110) (0.118)
Log (GDP per capita) 0.945*** 0.451** 0.752*** 0.974*** 0.354** 0.803*** 0.622*** 0.964**
(0.238) (0.188) (0.250) (0.226) (0.163) (0.245) (0.179) (0.365)
Trade Openness 0.00151 0.00233 0.000478 0.00143 0.00229 0.000499 0.00213 0.000296
(0.00295) (0.00291) (0.00219) (0.00215) (0.00189) (0.00183) (0.00344) (0.00367)
Agricultural value added 0.0102*** 0.00988** 0.00819** 0.00234 0.00516 0.00812* 0.00873** 0.0187*
(0.00374) (0.00393) (0.00325) (0.00480) (0.00372) (0.00407) (0.00399) (0.00990)
Gross fixed capital formation 0.0147** 0.0138* 0.0133* 0.00917 0.0143* 0.0125** 0.0171** 0.0161***
(0.00700) (0.00738) (0.00733) (0.00708) (0.00829) (0.00595) (0.00695) (0.00589)
Inflation 0.00221 0.0134* 0.00231 0.00218 0.00318 0.00147 0.00167 0.00396
(0.00238) (0.00713) (0.00342) (0.00214) (0.00343) (0.00330) (0.00212) (0.00275)
CO2 emissions 0.0990*** 0.0728*** 0.179*** 0.118** 0.0835*** 0.0840** 0.0748*** 0.169***
(0.0273) (0.0265) (0.0337) (0.0455) (0.0276) (0.0324) (0.0267) (0.0604)
Total resource rents 0.0583*** 0.0550**
(0.0201) (0.0259)
Total resource rents*food imports 0.00655**
(0.00276)
Coal rents 0.257***
(0.0572)
19
(Continues)
(Continued)
20
TABLE 5
Dependent variables: human development index
(1) (2) (3) (4) (5) (6) (7) (8)

Forest rents 0.0761***
(0.0246)
(0.0457)
Natural gas rents 0.185*
(0.0967)
Oil rents 0.0341**
(0.0154)
Ores and metal exports 0.0663***
(0.0210)
Constante 1.283 0.101 1.205 3.673*** 0.346 1.141 3.292 2.758
(1.319) (0.712) (1.794) (1.142) (0.869) (1.371) (2.060) (1.753)
Observations 775 775 775 775 775 772 775 755
Number of instruments 25 34 37 19 27 25 35 29
AR(1) 0.000 0.001 0.000 0.000 0.000 0.000 0.001 0.001
AR(2) 0.723 0.442 0.917 0.551 0.767 0.527 0.750 0.478
Hansen test p-value 0.234 0.121 0.208 0.205 0.109 0.233 0.149 0.100
Note: Robust standard errors in parentheses.

***p < 0.01; **p < 0.05; *p < 0.1.Source: Authors.
DEBONHEUR ET AL.
DEBONHEUR ET AL. 21
Table 5 shows that CO2 emissions degrade human development conditions in African countries. The depletion
of natural resources due to extraction is associated with CO2 emissions, which have a negative impact on the quality
of life of African populations. Pollution of the environment by carbon emissions leading to climate change is a major
obstacle to achieving the SDGs and the aspirations of the Agenda 2063 advocated by the United Nations and the
African Union. This result is in line with that obtained by Dialga and Ouoba (2022) and Khan, Tan, Hassan, and
Bilal (2022).
In general, the signs of our variables of interest do not change according to the estimation methods. Overall, the
signs of most of the other variables remain unchanged. In addition, the robustness analysis taking carbon emissions
into account shows that the results are stable overall.
5 | C O N C L U S I O N A ND P O LI C Y I M P L I C A T I O N S
In this paper, we examined the effects of natural resource rents on human development in 41 African countries over
the period 1996–2019. To do this, we used the Ordinary Least Squares method, the quantile regression, and the
two-step system GMM. The results obtained show a negative relationship between natural resource rents and
human development, thus confirming the thesis of the natural resources curse in the region. However, when dis-
aggregated, the different types of rent have different effects on human development. The negative relationship
applies to oil and coal rents. On the other hand, forestry and natural gas rents improve human development in Africa.
Thus, in line with the results obtained by Acar (2017), our results reveal that the notion of natural resource curse can
be challenged under certain specifications and can also be extended to explain various economic and social aspects
(such as human development) alongside economic growth. We have also examined an important aspect of depen-
dence on natural resource rents. This is the interaction between natural resource rents and food imports. We have
found that revenues from the exploitation of natural resources enable countries to pay food import bills, which has a
positive impact on human development.
In terms of economic policies, one of the main challenges for African countries is to develop and implement
strategies that minimize the negative consequences of natural resource rents (in particular by reducing their vulnera-
bility to commodity prices) to improve their human development over time. Given their heavy dependence on pri-
mary products and the weakness of their domestic production structure, diversification of revenue sources remains
an important key to improving human development. These countries should devise strategies that consolidate local
production, which implies strategies based on the long term. As Carmignani and Avom (2010) have pointed out, this
raises complex issues relating to the dynamics of structural change, improving the business climate, environmental
sustainability, and ultimately human development. In the context of the war between Russia and Ukraine, leading to
uncertainty over the supply of food and agricultural products, the acceleration and consolidation of this strategy is
necessary for African countries. Although the exploitation of natural resources provides countries with foreign cur-
rency to pay their food import bills, given the instability of this source of revenue, low level of incomes, and high
demographic growth on the continent, strengthening national food production, improving food trade between
African countries and implementing macroeconomic reforms are measures that can help these countries to effec-
tively combat food insecurity in the long term and improve the well-being of their populations.
Our results also show a positive effect of institutional quality on human development. This suggests that promoting
good institutions contributes to better human development. The importance of institutional quality lies in the fact that it
enables governments to maintain an efficient and transparent allocation of resources in human development initiatives.
Insofar as the exploitation of natural resources is accompanied by CO2 emissions and deforestation, which have conse-
quences for the well-being of populations, good institutions also promote effective environmental regulation.
Measures to combat rent-seeking behavior, compliance with the principles of the extractive industries transpar-
ency initiative, and transparent management of tax revenues can be complementary measures to strengthen good
governance of these resources in these countries.
22 DEBONHEUR ET AL.
The results for variables representing sectors of the economy such as investment or GDP per capita follow the
conclusions of economic theory. Moreover, our analysis shows that substantial investment leads to a significant
improvement in human development. To promote a policy of redistribution, countries can choose specific and
targeted forms of expenditure such as spending on education, health, or transfers and subsidies. Significant invest-
ment in health and education and a more equitable redistribution of resource rents can go a long way toward
supporting human development in these countries. These investments in human capital will ultimately help to
increase labor productivity and develop a competitive manufacturing sector.
The robustness analysis taking carbon emissions into account shows that the results are stable overall. Furthermore,
our results clearly show a negative effect of carbon emissions on human development in the countries in the sample.
Generally speaking, some determinants of economic growth (industrial practices) and urbanization contribute to environ-
mental degradation (Ahmed et al., 2020; Ganda, 2020b). As a result, reducing the health risks associated with carbon
emissions by moving toward more environmentally and climate-friendly forms of production is a priority, which will
result in maintaining biodiversity, reducing environmental deterioration and pollution, and reducing the risk to food secu-
rity. This requires significant investment in education, health, training, and other elements necessary for well-being.
Access to better quality education, support for a healthier population and a more equitable distribution of income can
be the main routes to high performance in human development and thus to accelerating the achievement of the SDGs
of the United Nations and the aspirations of the Agenda 2063 of the African Union for Africa.
Given the immense and pressing need for capital to finance productive capacity infrastructures and in a context
of low human capital, it is not necessarily essential for African countries to systematically support policies that
encourage public savings.
All the same, this research is not without limitations. Due to data availability, the study does not consider some
resource-rich African countries and does not include other indicators that may allow us to better understand how
the resource curse works in Africa. This analysis should be completed to include a considerable number of countries
and other indicators of human development taken individually, notably education and health.
Finally, future research could examine other channels through which the exploitation of natural resources in
Africa can affect human development. These include the role of the financial sector in resource-rich African countries
in improving the natural environment. Future research could also examine how environmental degradation through
the exploitation of natural resources affects agricultural productivity in African countries. Other research could also
focus on the public management of natural resource rents, particularly in terms of their contribution to development
projects, or on the role of extractive industries in contributing to national income in African countries.
DATA AVAI LAB ILITY S TATEMENT

The data that support the findings of this study are available on request from the corresponding author.
ORCID
Idrissa Ouedraogo https://orcid.org/0000-0001-6058-0359
ENDNOTES
1
According to Beitone et al. (2019), natural resources are goods that are not produced by humans but are useful to them
either as production goods (ores, energy resources, water, etc.) or as consumption goods (water, game, etc.). Alternatively,
according to the World Trade Organization (2010), natural resources are “stocks of materials in the natural environment
that are both scarce and economically useful for production or consumption, either in their raw state or after minimal
processing.”
2
The environment is now seen as a means of reducing poverty, achieving high standards of living, and increasing levels of
human development.
3
According to Daly (1994) “Natural capital is the stock that produces the flow of natural resources; the fish population in
the ocean that generates the flow of fish to market; the standing forest that generates the flow of cut trees; the oil
reserves in the ground whose exploitation provides the flow of oil to the pump.”
DEBONHEUR ET AL. 23
4
The CEMAC (Economic and Monetary Community of Central Africa) is made up of six countries: Cameroon, Chad, Congo,
Gabon, Central African Republic and Equatorial Guinea.
5
BEAC: Bank of Central African States.
6
Having managed its diamonds quite well and used the rents to support rapid growth, Botswana has become one of the
richest countries in Africa, measured by the purchasing power of per capita GDP (Gylfason, 2008a, 2008b).
7
Following Chong and Gradstein (2007), Easterly and Levine (2003), and Ouedraogo et al. (2022), we calculated an index of
institutional quality by using a simple average of the six institutional quality measures from the Worldwide Governance
Indicators of the World Bank (2023b). These institutional quality measures take values ranging from 2.5 to +2.5, with a
higher level indicating a greater effort to improve the quality of the institutions.
8
http://hdr.undp.org/en/content/human-development-index-hdi
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How to cite this article: Debonheur, K. D., Avom, D., & Ouedraogo, I. (2023). The effect of natural resources
rents on human development in selected African countries. Natural Resources Forum, 1–35. https://doi.org/
10.1111/1477-8947.12341
DEBONHEUR ET AL. 27
APPENDIX
TABLE A1 List of countries in the sample.
Country name Country name Country name Country name

(country code) (country code) (country code) (country code)
Algeria (DZA) Ethiopia (ETH) Mauritius (MUS) South Africa (ZAF)
Angola (AGO) Gabon (GAB) Morocco (MAR) Sudan (SDN)
Benin (BEN) Gambia (GMB) Mozambique (MOZ) Tanzania (TZA)
Botswana (BWA) Ghana (GHA) Namibia (NAM) Togo (TGO)
Burkina Faso (BFA) Guinea (GIN) Niger (NER) Tunisia (TUN)
Burundi (BDI) Cote d'Ivoire (CIV) Nigeria (NGA) Uganda (UGA)
Cape Verde (CPV) Kenya (KEN) Congo (COG) Zambia (ZMB)
Cameroon (CMR) Lesotho (LSO) Rwanda (RWA) Zimbabwe (ZWE)
Central African Republic Madagascar (MDG) Senegal (SEN)
(CAF)
Comoros (COM) Mali (MLI) Seychelles (SYC)
Egypt (EGY) Mauritania (MRT) Sierra Leone (SLE)
Source: Authors.
List of variables, definition, unit, and sources.
28
TABLE A2
Variable Definition Unit Source

tnr Total resource rents (%GDP) Total natural resource rents are the sum of oil, natural gas, coal, minerals, and WDI https://databank.worldbank.org/
forestry rents data/source/world-development-
indicators.
ores Ores and metals exports (% of ores and metals include crude fertilizers, minerals, metal ores, scrap metal, and WDI https://databank.worldbank.org/
merchandise exports) nonferrous metals. data/source/world-development-
indicators.
gfcf Gross fixed capital formation GFCF Gross fixed capital formation (GFCF) includes land improvements WDI https://databank.worldbank.org/
(fences, ditches, drains, etc.), purchases of plant, machinery, and equipment, data/source/world-development-
and construction of roads, railroads, and other facilities, including schools, indicators.
offices, hospitals, private residential housing, and commercial and industrial
buildings. According to the System of National Accounts (SNA) 1993, net
acquisitions of valuables are also considered as capital formation.
gdp GDP per capita (constant GDP is the sum of gross value added by all resident producers in the economy WDI https://databank.worldbank.org/
2015 US dollars) plus taxes on products less subsidies not included in the value of products. data/source/world-development-
indicators.
Agri The variable value added of Agriculture includes forestry, hunting, fishing, and crop and livestock WDI https://databank.worldbank.org/
agriculture, forestry, and production. data/source/world-development-
fishing (% of GDP) indicators.
Foodm Food imports Food includes food and live animals, beverages and tobacco, animal and WDI https://databank.worldbank.org/
vegetable oils and fats, and oil seeds, nuts, and oil kernels. data/source/world-development-
indicators.
Hdi Human Development Index This index ranges from 0 to 1. 0 being considered the lowest level of human UNDP http://hdr.undp.org/en/content/
development and 1 a high level of human development. human-development-index-hdi
Trade Trade openness Trade openness is measured as the sum of exports and imports of goods and WDI https://databank.worldbank.org/
services over GDP. data/source/world-development-
indicators.
ipc Consumer price index Inflation reflects the annual percentage change in the cost to the average WDI https://databank.worldbank.org/
consumer of acquiring a basket of goods and services that may be fixed or data/source/world-development-
changed at specified intervals, such as once a year. The Laspeyres formula indicators.
is generally used.
Control of
corruption
DEBONHEUR ET AL.
TABLE A2 (Continued)

Reflects perceptions of the extent to which public power is exercised for WGI https://databank.worldbank.org/
private gain, including both petty and grand forms of corruption, as well as source/worldwide-governance-
indicators#
DEBONHEUR ET AL.
“capture” of the state by elites and private interests.
Government Reflects perceptions of the quality of public services, the quality of the civil WGI https://databank.worldbank.org/
effectiveness service and the degree of its independence from political pressures, the source/worldwide-governance-
quality of policy formulation and implementation, and the credibility of the indicators#
government's commitment to such policies
Political stability Political Stability and Absence of Violence/Terrorism measures perceptions of WGI https://databank.worldbank.org/
and absence of the likelihood of political instability and/or politically motivated violence, source/worldwide-governance-
violence/ including terrorism. indicators#
terrorism
Regulatory quality Reflects perceptions of the ability of the government to formulate and WGI https://databank.worldbank.org/
implement sound policies and regulations that permit and promote private source/worldwide-governance-
sector development. indicators#
Rule of law Reflects perceptions of the extent to which agents have confidence in and WGI https://databank.worldbank.org/
abide by the rules of society, and in particular the quality of contract source/worldwide-governance-
enforcement, property rights, the police, and the courts, as well as the indicators#
likelihood of crime and violence.
Voice and Reflects perceptions of the extent to which a country's citizens can participate WGI https://databank.worldbank.org/
accountability in selecting their government, as well as freedom of expression, freedom of source/worldwide-governance-
association, and free media. indicators#
Inst Institutional Quality This is an index based on six individual indicators, namely voice and Authors based on WGI https://databank.
accountability, political stability and absence of violence/terrorism, worldbank.org/source/worldwide-
government effectiveness, regulatory quality, rule of law, and control of governance-indicators#
corruption.
Coal Coal rents (% of GDP) Coal rents are the difference between the value of hard and soft coal WDI https://databank.worldbank.org/
production at world prices and their total production costs. data/source/world-development-
indicators.
Forest Forest rent (% of GDP) Forest rent is the product of the roundwood harvest multiplied by regional WDI https://databank.worldbank.org/
prices and a regional rental rate. data/source/world-development-
indicators.
Min Mineral rents (% of GDP)
29
(Continues)
(Continued)
30
TABLE A2

Mineral rents are the difference between the production value of a mineral WDI https://databank.worldbank.org/
stock at world prices and its total production costs. Minerals included in the data/source/world-development-
calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and indicators.
phosphate.
Natg Natural gas rents (% of GDP) Natural gas rents are the difference between the value of natural gas WDI https://databank.worldbank.org/
production at regional prices and total production costs. data/source/world-development-
indicators.
Oil Oil rents (% of GDP) Oil rents are the difference between the value of crude oil production at WDI https://databank.worldbank.org/
regional prices and total production costs. data/source/world-development-
indicators.
CO2 emissions CO2 emissions (metric tons Carbon dioxide emissions are those stemming from the burning of fossil fuels WDI https://databank.worldbank.org/
per capita) and the manufacture of cement. They include carbon dioxide produced data/source/world-development-
during consumption of solid, liquid, and gas fuels and gas flaring. indicators.
Note: The Human development index (hdi) indicates the dependent variable. The remaining variables are all explanatory variables.
Abbreviations: WDI, World Development Indicators; WGI, Worldwide Governance Indicators.
Source: Authors using WDI and WGI of the World Bank (2023a, 2023b), and UNDP (2020) data.
DEBONHEUR ET AL.
DEBONHEUR ET AL. 31
TABLE A3 Multicollinearity test with the variance inflation factor (VIF).
Variables First equation Second equation Third equation

Total resources rent 3.493 3.56
Food imports 1.857 1.95
Institutional quality 2.082 2.10
GDP per capita 2.690 4.19
Gross fixed capital formation 1.196 1.27
Agriculture value added 2.402 2.41
Trade openness 1.687 1.71
Ores and metals exports 1.108 1.287
Inflation 1.13
Coal rent 1.056
Natural gas rent 1.153
Mineral rent 1.216
Forest rent 1.076
Oil rent 1.206
CO2 emissions 2.77
Source: Authors.
TABLE A4 Statistiques descriptives des variables.
Variables Mean Std. dev Skewness Kurtosis Min Max Obs.

Hdi 0.505 0.119 0.319 0.470 0.244 0.804 950
Total resources rent 9.935 10.168 2.022 4.629 0.001 58.650 982
Food imports 17.517 9.435 0.690 0.754 0.00 52.31 926
Institutional quality 0.527 0.574 0.316 0.432 1.698 0.853 984
GDP per capita 2161.439 2494.929 2.483 7.259 236.460 15913.949 982
Gross fixed capital formation 20.711 9.973 0.540 2.845 2.424 81.021 963
Agricultural value added 20.068 12.934 0.496 0.333 0.000 60.611 980
Trade openness 65.17 34.853 1.155 2.169 0.000 225.02 957
Ores and metals exports 11.805 18.730 1.948 3.020 0,0000 86.419 907
Inflation 12.534 136.219 29.640 895,328 9.616 4145.106 943
Coal rents 0.126 0.587 6.854 4.058 0.000 8.047 984
Natural gas rents 0.209 0.650 4.058 17.185 0.000 4.399 981
Mineral rents 1.028 2.556 4.693 29.659 0.000 25.162 984
Forest rents 4.711 5.370 2.333 7.744 0.000 40.408 984
Oil rents 3.841 9.615 3.085 9.439 0.000 55.457 984
CO2 emissions 1.059 1.619 2.723 7.922 0.021 9.093 943
Source: Authors.
32
TABLE A5 Panel unit root tests.
ADF test KPSS test PP test
Specification without Specification with Specification without Specification with Specification without Specification with
Variables trend trend trend trend trend trend
hdi 6.94 (0.01) 6.93 (0.01) 0.0195 (0.1) 0.0188 (0.1) 93.7 (0.01) 93.7 (0.01)
Total resources rent 5.43 (0.01) 5.64 (0.01) 0.559 (0.0284) 0.0814 (0.1) 98.9 (0.01) 109 (0.01)
Food imports 6.65 (0.01) 7.01 (0.01) 0.669 (0.0163) 0.0758 (0.1) 142 (0.01) 156 (0.01)
Institutional quality 5.35 (0.01) 5.33 (0.01) 0.0662 (0.1) 0.067 (0.1) 61.9 (0.01) 61.9 (0.01)
GDP per capita 6.00 (0.01) 6.00 (0.01) 0.0196 (0.1) 0.02 (0.1) 66.9 (0.01) 67(0.01)
Gross fixed capital 8.00 (0.01) 8.01 (0.01) 0.0499 (0.1) 0.0518(0.1) 149 (0.01) 150 (0.01)
formation
Agriculture value added 5.94 (0.01) 5.94 (0.01) 0.0511 (0.1) 0.0268 (0.1) 82.8 (0.01) 83.6 (0.01)
Trade openness 5.72 (0.01) 5.72 (0.01) 0.025 (0.1) 0.0246 (0.1) 79.3 (0.01) 79.3 (0.01)
Ores and metals exports 5.44 (0.01) 5.93 (0.01) 0.893 (0.1) 0.0653 (0.1) 105 (0.01) 124 (0.01)
Inflation 10.1 (0.01) 10.2 (0.01) 0.315 (0.1) 0.136(0.0681) 987 (0.01) 984 (0.01)
Coal rent 5.92 (0.01) 6.13 (0.01) 0.594 (0.0232) 0.0761 (0.1) 189 (0.01) 202 (0.01)
Natural gas rent 8.18 (0.01) 8.17 (0.01) 0.045 (0.1) 0.0217 (0.1) 64 (0.01) 65.8 (0.01)
Mineral rent 8.08 (0.01) 8.24 (0.01) 0.251 (0.1) 0.0702 (0.1) 153 (0.01) 158 (0.01)
Forest rent 5.18 (0.01) 5.19 (0.01) 0.0803 (0.1) 0.0504 (0.1) 92.3 (0.01) 92.5 (0.01)
Oil rent 4.75 (0.01) 4.94 (0.01) 0.543 (0.0319) 0.0738 (0.1) 71.2 (0.01) 80.5 (0.01)
CO2 emissions 5.53(0.01) 5.58(0.01) 0.0702 (0.1) 0.0291 (0.1) 57 (0.01) 57.7 (0.01)
Source: Authors.
DEBONHEUR ET AL.
DEBONHEUR ET AL. 33
.8
SYC
MUS
.7
TUN
DZA
EGY
GAB ZAF
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM
COG
.5 AGO
NGA CMR MDG MRT ZMB
BEN LSO ZWE
UGA
CIV TGO
SDN TZA
SEN
GMB RWA
.4 ETH GIN
BFA
MLI BDI SLE MOZ
CAF
NER
.3
0 20 40 60 80
Ores and metals exports (% of merchandise exports)
FIGURE A1 Correlation between ores and metals exports and human development in Africa. Source: Authors.
.8
SYC
MUS
.7
TUN
DZA
EGY
GAB ZAF
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM
COG
.5 AGO
MDG
NGA
ZMB
MRT
CMR
BEN
LSO ZWE
UGA
CIV
TGO
TZA
SDN
SEN
GMB
RWA
.4 ETH
GIN
BFA
MLI
SLE
BDI MOZ
CAF
NER
.3
0 .5 1 1.5 2 2.5
Coal rents (% of GDP)
FIGURE A2 Correlation between coal rents and human development in Africa. Source: Authors.
34 DEBONHEUR ET AL.
.8
SYC
MUS
TUN
DZA
ZAF
EGY GAB
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM COG MDG
AGONGA CMR
MRT ZMB
ZWE
BEN
LSO
CIV TZA TGO UGA
SDN SEN
GMB RWA
.4 GIN ETH
MLI BFAMOZ SLE BDI
CAF
NER
.2
0 5 10 15 20 25
Forest rent (% of GDP)
FIGURE A3 Correlation between forest rents and human development in Africa. Source: Authors.
.8
SYC
MUS
.7
DZA TUN
EGY
GAB ZAF
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM
COG
.5 AGO
MDG
NGA
CMR ZMB MRT
BEN
LSO ZWE
UGA
CIV TGO
GMB SEN TZA
SDN
RWA
.4 ETH GIN
MOZ
BDI SLE BFA MLI
CAF
NER
.3
0 2 4 6 8
Mineral rents (% of GDP)
FIGURE A4 Correlation between mineral rents and human development in Africa. Source: Authors.
DEBONHEUR ET AL. 35
.8
SYC
MUS
.7
TUN DZA
ZAF
GAB EGY
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM COG
.5 MDG
ZMB
MRT AGO
CMR NGA
ZWE
BEN
LSO
UGA
TGO CIV
SENTZA
SDN
GMB
RWA
.4 ETH
GIN
BFA
MLI
SLE
BDI MOZ
CAF
NER
.3
0 1 2 3
Natural gas rents (% of GDP)
FIGURE A5 Correlation between natural gas rents and human development in Africa. Source: Authors.
.8
SYC
MUS
.7
TUN DZA
ZAF EGY GAB
BWA
CPV
.6 MAR
NAM
GHA
KEN
COM COG
.5 MDGMRT
ZMB CMR NGA AGO
ZWE
BEN
LSO
UGA CIV
TGO
TZA
SEN SDN
GMB
RWA
.4 ETH
GIN
BFA
MLI
MOZ
SLE
BDI
CAF
NER
.3
0 10 20 30 40
Oil rents (% of GDP)
FIGURE A6 Correlation between oil rents and human development in Africa. Source: Authors.

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Received: 13 October 2022 Revised: 6 September 2023 Accepted: 11 September 2023

The effect of natural resources rents on human

Kadagde Dalam Debonheur 1 | Désiré Avom 1 | Idrissa Ouedraogo 2

Natural resource1 endowment can be a fundamental determinant of a country's socioeconomic development.

Nat Resour Forum. 2023;1–35. wileyonlinelibrary.com/journal/narf © 2023 United Nations. 1

3.2 | Empirical model and estimation strategies

hdiit ¼ αo þ δ1 hdiit1 þ δ2 tnrrit þ δ3 instit þ δ4 ðtnrr foodmÞit1 þ δV it þ εit : ð1Þ

4 | EMPIRICAL RESULTS AND DISCUSSION

4.1 | Cross-sectional dependence

4.2 | Correlation matrix

TABLE 1 Panel cross-sectional dependence tests.

***Denote 1% significance level.

TABLE 2 Correlation between HDI and control variables.

Note: Significant at 1% ***; 5% **; 10%*.

4.3 | Descriptive statistics

4.4 | Stationarity tests

4.5 | Main results from the quantile regression

4.6 | Main results from OLS and two-step system GMM

4.7 | Robustness analyses

Estimation method: OLS estimates

Dependent variable: human development index (HDI)

Variables (1) (2) (3) (4) (5) (6) (7) (8)

Estimation method: OLS estimates

Dependent variable: human development index (HDI)

Variables (1) (2) (3) (4) (5) (6) (7) (8)

Note: Coefficients significant at 1% ***, 5% **, and 10% *.

Estimation method: Two-step GMM system estimates

Dependent variable: human development index (HDI)

(1) (2) (3) (4) (5) (6) (7) (8)

Estimation method: Two-step GMM system estimates

Dependent variable: human development index (HDI)

(1) (2) (3) (4) (5) (6) (7) (8)

Note: Robust standard errors in parentheses.

Estimation method: Two-step GMM system estimates

Dependent variables: human development index

(1) (2) (3) (4) (5) (6) (7) (8)

Estimation method: Two-step GMM system estimates

Dependent variables: human development index

(1) (2) (3) (4) (5) (6) (7) (8)

Note: Robust standard errors in parentheses.

DATA AVAI LAB ILITY S TATEMENT

TABLE A1 List of countries in the sample.

Country name Country name Country name Country name

Variable Definition Unit Source

Variable Definition Unit Source

“capture” of the state by elites and private interests.

Variable Definition Unit Source

TABLE A3 Multicollinearity test with the variance inflation factor (VIF).

Variables First equation Second equation Third equation

TABLE A4 Statistiques descriptives des variables.

Variables Mean Std. dev Skewness Kurtosis Min Max Obs.

TABLE A5 Panel unit root tests.

ADF test KPSS test PP test

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Note: Significant at 1% ; 5% ; 10%.

Note: Coefficients significant at 1% , 5% , and 10% .