Abstract
There is an extensive literature demonstrating a positive link between export diversification and economic growth. In parallel, the resource curse thesis posits export concentration as an important mechanism curtailing growth in mineral-rich countries. Our analysis contributes to this literature by empirically investigating the interaction between oil dependence captured by the share of oil rents in GDP and export diversification and economic growth for Sudan. We do this with the help of a VAR model using annual data between 1960 and 2018. In comparison to earlier studies, our dataset covers also Sudan’s post-oil boom period, which coincided with a substantial drop in oil dependence after the 2011 secession of South Sudan. We find that oil rents appear to have a statistically significant and negative effect on export diversification, although contemporaneously rather than in the long-term. However, we find no evidence of a statistically significant impact of either oil dependence or export diversification on economic growth, as suggested by the resource curse hypothesis.
| Original language | English |
|---|---|
| Pages (from-to) | 77-96 |
| Number of pages | 20 |
| Journal | Mineral Economics |
| Volume | 36 |
| Issue number | 1 |
| Early online date | 21 Mar 2022 |
| DOIs | |
| Publication status | Published - Jan 2023 |
Bibliographical note
This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.Keywords
- Sudan; Vector Autoregressive Model; Resource Curse; Oil; Export Diversification
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)
