The Impact of Natural Resource Rents on Sustainable Development Dimensions in Resource‐Rich Countries

ABSTRACT The debate on natural resource rents financing the Sustainable Development Goals (SDGs) contrasts “resource curse” and “resource blessing” paradigms, yet evidence on heterogeneous effects by resource type is limited. This study examines disaggregated rents from oil, natural gas, minerals, and forests on the economic, social, and environmental dimensions of the 17 SDGs in 30 resource‐rich countries from 1995 to 2022. Using a multi‐method approach (double‐censored Tobit model, fixed effects with Driscoll‐Kraay standard errors, and two‐step system GMM), results show that aggregate rents positively affect the composite Sustainable Development Index. However, oil rents consistently harm all SDG dimensions, supporting the resource curse. In contrast, natural gas, mineral, and forest rents positively influence the three dimensions, indicating a conditional resource blessing under good governance. Findings suggest that the resource curse is oil‐driven, while non‐oil resources offer strong potential to advance the SDGs through transparent management, sovereign wealth funds, and strategic investments.