Natural Resource Depletion and Economic Growth in Nigeria
Sr No:
Page No:
56-65
Language:
English
Authors:
Endurance Keyamo
Received:
2025-01-03
Accepted:
2025-01-16
Published Date:
2025-01-19
Abstract:
This study empirically investigated the relationship between resource depletion and
economic growth in Nigeria. The specific objectives of the paper were to evaluate the impact of
resource drivers on natural resource depletion as well as the impact of resource depletion and
environmental pollution on economic growth. The study employed time series data from 1990 to
2022 on real gross domestic product (RGDP), population growth (POP), total natural resource
depletion (R_DEP) and energy depletion (E_DEP) - proxied as the percentage of gross national
income – while CO2 emission and human capital index (HDI) served to proxy environmental
pollution and human capital development, respectively. Moreover, the paper utilised the ARDL
and the Johansen Cointegration approach in the estimation of the specified models. The findings
of the study show that economic activities and population growth significantly devalue natural
resources in the short run, while human capital index has a countervailing influence on natural
resource depletion. In addition, the findings revealed evidence of the existence of long-run
relationship between energy depletion, CO2 emission, HDI and economic growth, as well as unidirection causality from energy depletion to human capital development. The paper therefore
recommended the strategic development of human resource capital as it is a vital ingredient for
evolving alternatives to resource dependence.
Keywords:
Resource depletion, Resource abundance, Resource dependence, ARDL