This research investigates whether the availability of natural resources rents can lead to corruption in resource-rich countries. The study used a panel data analysis for the sample of 26 countries within Sub-Saharan Africa during the period from 1989 to 2011. Estimates from this study confirmed that natural resource rents induce corruption. Socioeconomic conditions and rule of law were identified to be negatively associated with corruption. Surprisingly, this study also found that democracy is positively correlated with corruption. Moreover, this research identified internal conflicts to be negatively associated with corruption contrary to other studies. These findings would imply that policies in resources-rich countries should be more about institutions to prevent rent-seeking and patronage, and about giving the right incentives to actors in the resource sector. This in turn would counteract the adverse effects of resource endowments and will help to reduce corruption in resource-rich countries.
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