Mineral Rent–Human Development Nexus: Experience from Selected Subsahara African Countries.

Abstract

This study examines the relationship between the mineral rent and human development (HD). Impact of mineral and other resources on the human development has been one of interesting topics in recent decades. We used evidence from selected five sub-Sahara African countries (Tanzania, democratic republic of Congo, Botswana, Namibia and South Africa) as the relevant case. Fixed effect model was adopted to analyze the paneldata of five resources rich countries from sub-Sahara Africa. Findings revealed that the resource rent has a positive significant effect on human development. These results were confirmed through running the robustness test of the parameter estimates. We therefore concluded that, resource endowment is a blessing rather than a curse in the selected sub Saharan African countries. The study therefore recommended that countries should not hesitate in the investment in exploitation and sustainable usage of mineral resources as long as there will be stable institutions and policies to ensure that the resources are channeled into economic development activities.