Natural Resources Abundance and Health: Does Technological Innovation and Governance Matter?

This paper aims to evaluate the impact of resource abundance on health outcomes, considering the mediating effects of innovation and the quality of governance. We estimate an economic model for 26 African countries from 1996 to 2023. Econometric analysis is performed using the generalized method of moments (GMM) estimator. Results derived from the estimated health function support the natural resource curse hypothesis, extensively discussed in the economic literature, since a statistically negative effect is estimated for the oil rent variable. Furthermore, the finding highlights the significant mediating role of institutional quality and innovation in improving health outcomes. In conclusion, Policymakers in the African region must implement several necessary reforms, especially technological, institutional, and political ones.