Born with a silver spoon but raised as a beggar: Fresh empirical investigations into the resource curse thesis in Africa

Although African countries are richly blessed with several types of natural resources, Africa's development trajectory over the years has remained derisory. Consequently, this study empirically probed into the direct and indirect effects of natural resources on sustainable development. The empirical investigations covering the social, economic and environmental dimensions of sustainable development were conducted using the System Generalised Method of Moments approach for a panel of 44 African economies from 1996 to 2022. The results reveal that natural resources adversely contribute to economic development while fostering social development and environmental sustainability. Besides, the negative contribution of natural resources to economic development is higher among resource-rich countries compared to resource-scarce countries, thereby showing evidence of the resource curse thesis in Africa. However, the resource bless thesis is apparent with regard to the contribution of natural resources to social development and environmental sustainability. Moreover, the effects of natural resources on sustainable development are divergent for different types of natural resources. Furthermore, the interactive regressions reveal the critical role of good governance in modulating the negative impact of resource rents on sustainable development, as evidenced by the established positive net effects and threshold values. Practical policy implications emanating from the findings are discussed.