A Study on the Impact of Natural Resources Endowment on Economic Growth: Empirical Evidence from Mali
Bah Boubacar Alpha, Yibing Ding

Slow growth has been the case in many Sub-Saharan Africa (SSA) countries in the 1980s and 1990s. The natural resources export of most SSA countries in the 1990s to early 2000s has been a curse rather than blessing. This situation is the case for the economy of Mali; the revenues from natural resources export have been mixed and largely attributed to weak government management of the natural resources endowment, institutional and administrative bottlenecks in the natural resources sector. Given the role of natural resources export on growth, this study investigates the impact of natural resources endowment on economic growth in Mali from 1990-2013, using the Error Correction Model (ECM) regression technique. This study shows that natural resources export has a positive impact on growth in Mali. However, the interaction of natural resources export and corruption impact negatively on economic growth in Mali. The policy implication is that, there is need for the country to improve on the management of natural resources revenues by putting in place effective and robust policy measures to lessen and/ or possibly eliminate corruption in the public domain. This study contributes to current literature by providing an econometric understanding of relationships in natural resources endowment and growth for SSA countries. This understanding is important for academics, policy makers and development organizations that are assisting with the growth process of Africa in shaping the future stability of natural resources infrastructure and economic growth in the region.

Full Text: PDF     DOI: 10.15640/jeds.v4n4a8