Resources Endowment and Total Factor Productivity Growth in the Sub-Saharan African Economies

Authors- Adeleye Ebenezer Oloniluyi, Julius Oyebanji Ibitoye, Akindele John Ogunsola

Abstract-The study examined the contribution of resources to the total factor productivity of the Sub-Saharan African countries with data from 48 African countries. We employed System (GMM) estimation techniques. The empirical results show that there is significant evidence that natural resource endowment in Sub-Saharan African countries is positively associated with TFP growth, also the larger the distance of host countries to the technology frontier countries in exploring the endowed resource the lower the productivity growth rate. In addition, the Arellano Bond estimation test at (0.0165) indicates first-order autocorrelation and no second-order autocorrelation in the residuals at (0.1823). Furthermore, Sargan p-value (0.96) confirmed the validity of the instruments with the non-correlation with residuals. The Sub-Saharan African countries especially the resourcefully endowed countries should continue to direct their policies towards improving the quality of human capital through improving the quality of education and research and development to improve the level of productivity in the countries.

DOI: /10.61463/ijset.vol.13.issue1.170