A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African
Sub-Saharan African (SSA) nations are falling behind in human development when compared to other regions globally, despite their abundant natural resources. Several Sub-Saharan African states have an underdeveloped financial structure, leading to underutilization of natural resource profits for huma...
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| Format: | Article |
| Language: | English |
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Econjournals
2024
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| Online Access: | http://psasir.upm.edu.my/id/eprint/118917/ http://psasir.upm.edu.my/id/eprint/118917/1/118917.pdf |
| _version_ | 1848867823037710336 |
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| author | Bani, Yasmin Ali Gutale, Ali Abdulkadir Abdul-Rahim, Abdul Samad Mohammad Afandi, Syamsul Herman |
| author_facet | Bani, Yasmin Ali Gutale, Ali Abdulkadir Abdul-Rahim, Abdul Samad Mohammad Afandi, Syamsul Herman |
| author_sort | Bani, Yasmin |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Sub-Saharan African (SSA) nations are falling behind in human development when compared to other regions globally, despite their abundant natural resources. Several Sub-Saharan African states have an underdeveloped financial structure, leading to underutilization of natural resource profits for human development. This research examines how the level of financial development impacts the relationship between natural resource rents and sustainable human development in 40 SSA countries from 2005 to 2019. This research used the dynamic panel threshold (DPT) approach, an advanced econometric methodology designed to address concerns often seen in panel data such as endogeneity, cross-sectional dependence, and heterogeneity. The cointegration findings showed a long-term association among the variables. The dynamic panel threshold analysis showed that natural resource rent had a detrimental influence on human capital development when financial development was below a certain threshold. Conversely, the outcomes were different when financial development exceeded the threshold. Financial system progress in Sub-Saharan African states considerably uses resource windfalls to improve sustainable human development. This research conducted robustness tests by using alternative estimates excluding outlier sample countries and extra proxies. The conclusions remained unchanged. Policy suggestions were introduced to enhance the financial sector and improve institutional quality in order to ensure sustainable growth in the SSA area. © 2024, Econjournals. All rights reserved. |
| first_indexed | 2025-11-15T14:42:37Z |
| format | Article |
| id | upm-118917 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T14:42:37Z |
| publishDate | 2024 |
| publisher | Econjournals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1189172025-07-29T07:26:12Z http://psasir.upm.edu.my/id/eprint/118917/ A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African Bani, Yasmin Ali Gutale, Ali Abdulkadir Abdul-Rahim, Abdul Samad Mohammad Afandi, Syamsul Herman Sub-Saharan African (SSA) nations are falling behind in human development when compared to other regions globally, despite their abundant natural resources. Several Sub-Saharan African states have an underdeveloped financial structure, leading to underutilization of natural resource profits for human development. This research examines how the level of financial development impacts the relationship between natural resource rents and sustainable human development in 40 SSA countries from 2005 to 2019. This research used the dynamic panel threshold (DPT) approach, an advanced econometric methodology designed to address concerns often seen in panel data such as endogeneity, cross-sectional dependence, and heterogeneity. The cointegration findings showed a long-term association among the variables. The dynamic panel threshold analysis showed that natural resource rent had a detrimental influence on human capital development when financial development was below a certain threshold. Conversely, the outcomes were different when financial development exceeded the threshold. Financial system progress in Sub-Saharan African states considerably uses resource windfalls to improve sustainable human development. This research conducted robustness tests by using alternative estimates excluding outlier sample countries and extra proxies. The conclusions remained unchanged. Policy suggestions were introduced to enhance the financial sector and improve institutional quality in order to ensure sustainable growth in the SSA area. © 2024, Econjournals. All rights reserved. Econjournals 2024 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/118917/1/118917.pdf Bani, Yasmin and Ali Gutale, Ali Abdulkadir and Abdul-Rahim, Abdul Samad and Mohammad Afandi, Syamsul Herman (2024) A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African. International Journal of Energy Economics and Policy, 14 (6). pp. 63-79. ISSN 2146-4553; eISSN: 2146-4553 https://econjournals.com/index.php/ijeep/article/view/16027 10.32479/ijeep.16027 |
| spellingShingle | Bani, Yasmin Ali Gutale, Ali Abdulkadir Abdul-Rahim, Abdul Samad Mohammad Afandi, Syamsul Herman A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title | A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title_full | A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title_fullStr | A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title_full_unstemmed | A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title_short | A threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from Sub-Saharan African |
| title_sort | threshold effect of financial development on natural resource rents-sustainable human development nexus: empirical evidence from sub-saharan african |
| url | http://psasir.upm.edu.my/id/eprint/118917/ http://psasir.upm.edu.my/id/eprint/118917/ http://psasir.upm.edu.my/id/eprint/118917/ http://psasir.upm.edu.my/id/eprint/118917/1/118917.pdf |