Globalization, Institutional Quality and Management of Natural Resources in Africa

This study explores the interaction between globalization and institutional quality in the context of natural resource management. Data is analyzed from 37 African countries spanning a 21-year period (2000–2020) using System GMM. We examine three key variables: globalization, institutional quality, and natural resource management. The findings indicate that certain aspects of institutional quality combined with globalization influence total and depletion rent substantially. Additionally, law and order, legislative power, and globalization show significant influence on total and depletion rent. The interaction between globalization and institutional quality demonstrates significant and diverse effects on total natural resource rents, with varying relationships between bureaucratic quality and globalization, law and order, and legislative power. The study calls for the need to strengthen institutional quality, develop infrastructure and sustainable globalization strategies, diversification and economic transformation, and most importantly continuous monitoring and evaluation in natural resource management.