Analysis of economic growth of natural resource: case of Madagascar

Abstract

Madagascar is a country rich in natural resources; Malagasy natural capital intervenes in various ways in the national economy because it generates both goods and services. The links between the exploitation of natural resources and economic growth are based on the conversion of natural capital into other forms of capital. Resources are complementary to each other in the production process. Natural resources contribute to the country's GDP by creating jobs and contributing to the country's income. The mining sector, the forestry sector and the fishing sector which are the main sectors studied in our work are also the best performing sectors in the country. The uses of these three sectors in a manner in good governance only can help Madagascar escape poverty. Natural resources are important for the survival of a large part of the Malagasy population, but also important for the economy itself. So after bringing out the results of the econometric analysis through the application of the OLS model and various tests, we found that these resources are significantly and highly correlated with economic growth.