Financial Development and Natural Resource Rents–Human Capital Nexus: A New Approach

2021 ◽  
pp. 33-55
Author(s):  
Mohammad Ali Aboutorabi ◽  
Farzaneh Ahmadian Yazdi ◽  
Saeideh Parkam
Keyword(s):  
Human Capital ◽  
Financial Development ◽  
Natural Resource ◽  
New Approach ◽  
Resource Rents ◽  
Natural Resource Rents

Foreign Capital, Natural Resource Rents and Financial Development: A New Approach

2020 ◽  
pp. 097215092096136
Author(s):  
Muhammad Shahbaz ◽  
Mohammad Ali Aboutorabi ◽  
Farzaneh Ahmadian Yazdi
Keyword(s):  
Financial Development ◽  
Natural Resource ◽  
Capital Accumulation ◽  
Foreign Capital ◽  
New Approach ◽  
Resource Rents ◽  
Long Run ◽  
Natural Resource Rents ◽  
Rich Countries ◽  
The Impact

This article explores the impact of financial development on the ‘natural resources rents–foreign capital accumulation nexus’ in selected natural resource–rich countries during 1970Q1–2016Q4. In doing so, we propose a new approach by applying the autoregressive distributed lag (ARDL) rolling regression technique for our empirical purpose. The results show that financial development has a positive and significant effect on the way natural resource rents affect foreign capital in the case of Australia, Chile, Ecuador, Egypt and Peru in both the short run and the long run. We achieve the same results in the case of Colombia and Iran too, but just in the long run. Also, short-term and long-term negative effects of financial development on the rents–foreign capital nexus are witnessed just in the case of Algeria. We provide some empirical evidence for further robustness of our findings. Finally, we suggest that there is a necessity for the development of the financial system in natural resource–rich countries to reach higher levels of foreign capital, which has a crucial role in their economic growth.

scholarly journals The Dynamic Impact of Natural Resource Rents, Financial Development, and Technological Innovations on Environmental Quality: Empirical Evidence from BRI Economies

2021 ◽  
Vol 19 (1) ◽  
pp. 130
Author(s):  
Siming Zuo ◽  
Mingxia Zhu ◽  
Zhexiao Xu ◽  
Judit Oláh ◽  
Zoltan Lakner
Keyword(s):  
Economic Growth ◽  
Financial Development ◽  
Environmental Quality ◽  
Natural Resource ◽  
Low Income ◽  
Ecological Footprint ◽  
Technological Innovations ◽  
Middle Income ◽  
Resource Rents ◽  
Natural Resource Rents

Until recently, many countries’ policies were motivated by economic growth; however, few strategies were developed to prevent environmental deterioration including reducing the ecological footprint. In this context, the purpose of this study was to analyze the role of natural resource rents, technological innovation, and financial development on the ecological footprint in 90 Belt and Road Initiative (BRI) economies. This research divided the BRI economies into high income, middle-income, and low-income levels to capture income differences. This research used the second-generation panel unit root, cointegration, and augmented mean group estimators to calculate the robust and reliable outcomes. Based on the annual data from 1991 to 2018, the findings show that natural resource rents drastically damage the quality of the environment, whereas technological innovations are helpful in reducing ecological footprint. Moreover, the outcome of the interaction term (natural resource rents and technological innovations) negatively impacts the ecological footprint. Interestingly, these findings were similar in the three income groups. In addition, financial development improved environmental quality in the middle-income BRI economies, but reduced it in high-income, low-income, and full sample countries. Furthermore, the Environmental Kuznets Curve (EKC) concept has been validated across all BRI economies. Policymakers in BRI countries should move resources away from resource-rich sectors of industries/manufacturing sectors to enhance/promote economic growth and use these NRRs efficiently for a progressive, sustainable environment. Based on these findings, several efficient policy suggestions are proposed.

scholarly journals Impact of Natural Resource Rents and Institutional Quality on Human Capital: A Case Study of the United Arab Emirates

Resources ◽  
2019 ◽  
Vol 8 (3) ◽  
pp. 152 ◽  
Author(s):  
Ruba Aljarallah
Keyword(s):  
Human Capital ◽  
United Arab Emirates ◽  
Natural Resource ◽  
Positive Impact ◽  
Institutional Quality ◽  
Law And Order ◽  
Distributed Lag ◽  
Resource Rents ◽  
Natural Resource Rents

For many years, the United Arab Emirates has been using its natural resource wealth to develop infrastructure and attain economic growth. Nevertheless, human capital theory stresses the importance of human capital to reach sustainability in the long-term. This study examines the impacts of natural resource rents and institutional quality on human capital by applying the cointegration and error correction model based on the autoregressive distributed lag (ARDL) approach. The study uses corruption and law and order as proxies for institutional quality. The results indicate that one percent increases in resource rents and corruption decrease the human capital by 0.16% and 0.14%, respectively, in the long-term. Moreover, in the short-term, the current corruption and lag of resource rents have significant negative impacts on human capital. However, law and order has a positive impact on human capital in both the short and long-term. Thus, this study suggests that there is an instant need to prioritize education to reach long-term sustainability.

Growth Recoveries (from Collapses)

2021 ◽  
Author(s):  
Juan Francisco Meneses ◽  
José Luis Saboin
Keyword(s):  
Exchange Rate ◽  
Natural Resource ◽  
Exchange Rate Regime ◽  
Democratic Accountability ◽  
Resource Rents ◽  
Financial Account ◽  
External Conditions ◽  
Economic Collapse ◽  
Low Levels ◽  
Natural Resource Rents

This paper analyzes the behavior of a long list of economic variables during episodes of recovery from an economic collapse. A set of stylized facts is proposed so as to depict what in this work is called \saygrowth recoveries. Through different estimation techniques, it is inferred under which conditions and policies the likelihood of experiencing a growth recovery increases. The results of the paper indicate that collapses tend to occur in countries with high dependence on natural resource rents, macroeconomic mismanagement, low levels of democratic accountability and rule of law and high levels of conflict. Recoveries, on the other hand, tend to be longer than collapses and are more likely to occur in contexts of: improved external conditions, less natural resource rents, balanced fiscal accounts, where the exchange rate corrects but within a more fixed exchange rate regime and a more restricted financial account, and where there are: rebounds in private consumption, increases in international trade and improvements on property rights.

Natural resource rents, political regimes and terrorism in Africa

2020 ◽  
Vol 162 ◽  
pp. 50-66 ◽  
Author(s):  
Kazeem B. Ajide ◽  
Juliet I. Adenuga ◽  
Ibrahim D. Raheem
Keyword(s):  
Natural Resource ◽  
Political Regimes ◽  
Resource Rents ◽  
Natural Resource Rents
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