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Natural resources, institutions, and economic performance: A cross-country study (1995-2019)

No. 102 (2026-04-13)
  • Bladimir David Pozo Sulbarán
    Universidad del Zulia
  • Eduardo Antonio Piña Bermúdez
  • Alberto Gregorio Castellano Montiel
    Universidad de Sucre
    ORCID iD: https://orcid.org/0000-0003-0824-3202
https://doi.org/10.13043/DYS.102.5

Abstract

This study examines the relationship between natural resources, institutions, and economic performance over the period 1995-2019. Using cross-sectional data from a large sample of countries, a set of regressions is estimated through the two-stage least squares method. The findings indicate, first, that measures of natural resource dependence and abundance are neg­atively associated with both institutional quality and economic growth (1995-2019). At the same time, the estimates reveal a positive relationship between meas­ures of natural resource abundance and dependence and the level of per capita income (2019), alongside a negative association between natural resources and institutional quality. Overall, the results suggest that natural resources may adversely affect institutions and, in some resource-abundant countries, hinder economic development.

Keywords: Natural resources, institutions, economic growth, economic development

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