“Natural Resource Dependence and Economic Growth in Guinea: Does Institutional Quality Play a Role?”

https://doi.org/10.65770/KQXZ1332

ABSTRACT 

This paper investigates the relationship between natural resource dependence, institutional quality, and economic growth in Guinea over the period 1985–2022. It suggests an empirical approach based on the of ARDL, augmented by an interaction term between natural resource rents and institutional quality in order to test whether institutions can moderate the resource curse effect. The results indicate that while resource dependence negatively impacts growth, institutional quality serves as a positive driver. However, the analysis was unable to establish a specific institutional threshold required to neutralize the adverse effects of resource dependency. These results could further convince political authorities in Guinea of the importance of strengthening governance and promoting economic diversification for sustainable development, for the benefit of more stable dynamics of their economy.

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