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Natural Resource Rents, Chinese Financing and Sustainable Economic Growth nexus in sub-Saharan Africa

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Observational analysis uncovers the weak link between natural resource rents and growth in sub-Saharan Africa, highlighting the role of governance.

Natural resource rents show a weak correlation with GDP growth, requiring attention to governance for impact.
Using 20 years of panel data, foreign direct investment consistently correlates with lower growth in sub-Saharan Africa.
Econometric models reveal that effective trade policies may enhance growth prospects in the region by improving trade efficiency.
Chinese investment lacks a robust positive effect on economic performance, indicating a disconnect with resource abundance.

Sambiri et al. (2025) studied this question.

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Observational analysis uncovers the weak link between natural resource rents and growth in sub-Saharan Africa, highlighting the role of governance.