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Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa

Author

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  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey)

  • Chuka Uzoma Ifediora

    (Marketing Department, University of Nigeria, Enugu Campus (UNEC), Enugu 400241, Nigeria)

  • Jamiu Adetola Odugbesan

    (Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey)

  • Benneth Chiemelie Iloka

    (Department of Marketing, Faculty of Management Sciences, Enugu State University of Science and Technology, Enugu 400241, Nigeria)

  • João Xavier Rita

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • Rui Miguel Dantas

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • Mário Nuno Mata

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal)

  • José Moleiro Martins

    (ISCAL-Instituto Superior de Contabilidade e Administração de Lisboa, Instituto Politécnico de Lisboa, Avenida Miguel Bombarda 20, 1069-035 Lisbon, Portugal
    Instituto Universitário de Lisboa (ISCTE-IUL), Business Research Unit (BRU-IUL), 2649-026 Lisbon, Portugal)

Abstract

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.

Suggested Citation

  • Husam Rjoub & Chuka Uzoma Ifediora & Jamiu Adetola Odugbesan & Benneth Chiemelie Iloka & João Xavier Rita & Rui Miguel Dantas & Mário Nuno Mata & José Moleiro Martins, 2021. "Implications of Governance, Natural Resources, and Security Threats on Economic Development: Evidence from Sub-Saharan Africa," IJERPH, MDPI, vol. 18(12), pages 1-18, June.
    • Handle: RePEc:gam:jijerp:v:18:y:2021:i:12:p:6236-:d:571668
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