Extractive Wealth, Governance, and Sustainable Development in Africa

Disaggregated Evidence on Growth, Inequality, Environment, and Security

Bibliographic Data

ID12307795
AuthorsXiming Yue (0000-0003-3732-4204, Zhejiang Tongji Vocational College of Science and Technology), Xinting Yue (School of Economics and Information Zhejiang Tongji Vocational College of Science and Technology Zhejiang Hangzhou China), Ridwan Lanre Ibrahim (0000-0002-6429-2335, Advanced Research Centre European University of Lefke Mersin Turkey), Abdulrahman Alomair (0000-0001-7493-7822, Accounting Department, Business School King Faisal University Al‐Ahsa Saudi Arabia), Abdulaziz S Al Naim (0009-0003-3491-9234, Accounting Department, Business School King Faisal University Al‐Ahsa Saudi Arabia, corresponding author)
Year2025
Volume34
Issue2
Pages1533-1552
Publication date2025-11-10
Open AccessYes
TypeARTICLE
VenueSustainable Development (JOURNAL)
Journal identifiersISSN: 0968-0802 • E-ISSN: 1099-1719
PublisherWiley (PUBLISHER • GB)
DOI10.1002/sd.70405
OpenAlexW4416137224
LanguageEN
Citations received6
References cited42

Why do resource‐rich African countries struggle to achieve inclusive and sustainable development despite decades of extractive wealth? This study revisits the resource curse hypothesis through the lens of institutional mediation and SDG‐aligned outcomes, focusing on 10 of Africa's most resource‐dependent economies between 1996 and 2022. Employing a mixed‐method econometric strategy—Common Correlated Effects Mean Group for baseline analysis, Cross‐Sectionally Augmented ARDL (CS‐ARDL) for short‐run, and Mean Group estimators for country‐specific insights—the study investigates the effects of natural resource rents on economic growth (SDG 8), income inequality (SDG 10), environmental degradation (SDG 13), and militarization (SDG 16). A composite institutional quality index, derived via Principal Component Analysis of six World Governance Indicators, is introduced as a moderator to capture governance effectiveness. Results reveal a consistent pattern of multidimensional resource curse: resource rents depress growth, worsen inequality, heighten environmental degradation, and drive up military spending. However, strong institutional quality systematically mitigates these negative outcomes. Country‐specific estimates identify Nigeria, Angola, and Congo as particularly vulnerable to institutional failure. These findings affirm that institutional capacity is not just a mediating variable but a decisive condition for converting extractive wealth into sustainable development. The study offers actionable policy insights aligned with SDG targets, emphasizing the need for governance reform, fiscal accountability, and environmental responsibility. It contributes to a growing literature that calls for disaggregated, multidimensional, and governance‐sensitive approaches to resource management in Africa

Corporate governance · Economic rent · Environmental degradation · Environmental quality · Moderation · Natural resource · Natural resource management · Resource (disambiguation · Resource curse · Sustainable development · Economic Growth and Development · Energy, Environment, Economic Growth · Natural Resources and Economic Development

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