Global Journal of Economic and Finance Research

This study investigates the relationship between natural resource rents and economic growth, focusing on a diverse sample of developed and developing economies. Using panel data (1998–2021) and robust estimation methods, it examines the roles of institutional quality, governance, economic diversification, and global demand in shaping outcomes across varying contexts.

The findings reveal that the impact of resource rents on growth is complex, differing by resource type, income group, and governance quality. The resource curse is not inevitable; its negative effects are most pronounced in oil-dependent countries with poor governance and limited diversification. In contrast, gas and mineral rents provide more stable growth opportunities when effectively managed. Strong governance and diversification are essential to mitigate risks and maximize the benefits of resource rents. While stable global demand minimizes the impact of fuel price fluctuations on growth, mineral price volatility hampers growth in high- and low-income countries but not in middle-income ones, reflecting varying levels of dependency and resilience.

This study’s key contribution lies in addressing the existing gap in the literature by analyzing the impact of resource rents across a diverse set of countries, integrating both developed and developing economies. To our knowledge, only a limited number of studies use mixed samples that encompass both. By doing so, this study provides a more comprehensive understanding of the heterogeneous effects of resource dependence, highlighting the role of institutional quality and economic structures across varying levels of development.

Oil Rents; Economic Growth; Resource Curse; Natural Resources

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