Resource Dependence and Economic Growth: Distinguishing between Renewable and Non-Renewable Commodities

Abstract: Sustained economic growth is essential for developing countries in order to develop. Resource dependent countries face difficulties creating sustained growth as most suffer from a resource curse. Building on previous literature, this research aims at exploring the resource curse literature, with a focus on the time period 1995-2016, which includes the commodity boom, for countries located in Sub-Saharan Africa and Latin America. Findings are that the negative relationship between resource dependence and economic growth remains prevalent. Additionally, different types of commodities show differing effects on economic growth, where dependence on non-renewable resources is more deterrent for economic growth than dependence on renewable resources.