Resource Rents, Institutions, and Growth in Sub-Saharan African OIC Countries: A Panel Quantile Analysis

This research investigates the nexus among natural resource rents, control of corruption, and GDP per capita growth in 21 Sub-Saharan African OIC member states for the period 2005–2024. Applying panel Fixed Effects estimation as well as panel quantile regression (25th, 50th, and 75th percentiles), the study assesses heterogeneities along with the growth distribution. The findings suggest that control of corruption is positively associated with growth in all specifications. The interaction variable of natural resource rents and corruption control is found to be negative and significant, implying that the marginal effect of corruption control on growth decreases with increases in resource reliance. Quantile regression results indicate that the negative relationship between resource rents and growth is most pronounced at the lowest end of the growth scale, while foreign direct investment has a positive association with growth mostly in the median and upper quantiles. These results indicate that there is distributional diversity in the resource, governance, and growth nexus across SSA-OIC countries.