Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources
The objective of this study is to assess the short and long run effects of renewable and non-renewable resource rents on economic growth in Cameroon. Taking crude oil rents and forest resource rents as proxies for non-renewable and renewable resources respectively for the period 1977–2018, we employ...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-02-01
|
| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024011095 |
| _version_ | 1797304460515475456 |
|---|---|
| author | Gildas Dohba Dinga Ndam Mama Elvis D. Achuo |
| author_facet | Gildas Dohba Dinga Ndam Mama Elvis D. Achuo |
| author_sort | Gildas Dohba Dinga |
| collection | DOAJ |
| description | The objective of this study is to assess the short and long run effects of renewable and non-renewable resource rents on economic growth in Cameroon. Taking crude oil rents and forest resource rents as proxies for non-renewable and renewable resources respectively for the period 1977–2018, we employed the autoregressive and dynamic autoregressive distributive lag (ARDL/DynARDL) modelling frameworks to achieve the stated objective. Results from the ARDL model indicate that, in the short run, both the renewable and non-renewable resources have a positive and significant effect on economic growth but the point resource is more significant than the diffused. A clear disparity in results is however noticed in the long run. While the point resources show that natural resources are a curse to long run growth, the diffuse resources reveal that natural resources are a blessing to long run growth. From the DynARDL simulation, a negative shock of the point resources leads to a fall in economic growth whereas diffuse resource indicates an increase. This shows that point resources are more prone to the resource-curse thesis and diffuse resources to resource-bless thesis. Contingent on these findings, the Cameroon government should ensure a proper allocation of natural resource revenues especially point resource rents to growth-inducing investment or social overhead capital such as open new markets, transport infrastructures, and power sectors, so as to enhance growth and development. |
| first_indexed | 2024-03-08T00:10:49Z |
| format | Article |
| id | doaj.art-1844fb9d04cf4e5c8bc68e5105061f5e |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-03-08T00:10:49Z |
| publishDate | 2024-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-1844fb9d04cf4e5c8bc68e5105061f5e2024-02-17T06:39:32ZengElsevierHeliyon2405-84402024-02-01103e25078Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resourcesGildas Dohba Dinga0Ndam Mama1Elvis D. Achuo2University of Bamenda, Cameroon; Ministry of Secondary Education, CameroonUniversity of Bamenda, Cameroon; Department of Management, Higher Institute of Commerce and Management (HICM), Cameroon; Corresponding author. University of Bamenda, Cameroon.Ministry of Secondary Education, Cameroon; University of Dschang, CameroonThe objective of this study is to assess the short and long run effects of renewable and non-renewable resource rents on economic growth in Cameroon. Taking crude oil rents and forest resource rents as proxies for non-renewable and renewable resources respectively for the period 1977–2018, we employed the autoregressive and dynamic autoregressive distributive lag (ARDL/DynARDL) modelling frameworks to achieve the stated objective. Results from the ARDL model indicate that, in the short run, both the renewable and non-renewable resources have a positive and significant effect on economic growth but the point resource is more significant than the diffused. A clear disparity in results is however noticed in the long run. While the point resources show that natural resources are a curse to long run growth, the diffuse resources reveal that natural resources are a blessing to long run growth. From the DynARDL simulation, a negative shock of the point resources leads to a fall in economic growth whereas diffuse resource indicates an increase. This shows that point resources are more prone to the resource-curse thesis and diffuse resources to resource-bless thesis. Contingent on these findings, the Cameroon government should ensure a proper allocation of natural resource revenues especially point resource rents to growth-inducing investment or social overhead capital such as open new markets, transport infrastructures, and power sectors, so as to enhance growth and development.http://www.sciencedirect.com/science/article/pii/S2405844024011095Renewable resourcesNon-renewable resourcesEconomic growthARDL/DynARDL |
| spellingShingle | Gildas Dohba Dinga Ndam Mama Elvis D. Achuo Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources Heliyon Renewable resources Non-renewable resources Economic growth ARDL/DynARDL |
| title | Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources |
| title_full | Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources |
| title_fullStr | Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources |
| title_full_unstemmed | Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources |
| title_short | Resource abundance: Blessing or curse? Comparative analyses of point and diffuse resources |
| title_sort | resource abundance blessing or curse comparative analyses of point and diffuse resources |
| topic | Renewable resources Non-renewable resources Economic growth ARDL/DynARDL |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024011095 |
| work_keys_str_mv | AT gildasdohbadinga resourceabundanceblessingorcursecomparativeanalysesofpointanddiffuseresources AT ndammama resourceabundanceblessingorcursecomparativeanalysesofpointanddiffuseresources AT elvisdachuo resourceabundanceblessingorcursecomparativeanalysesofpointanddiffuseresources |