The asymmetric effect of natural resource abundance on economic growth and environmental pollution: Evidence from resource-rich economy

The interrelationship between natural resource and economic development, hasn't reached an agreement. Some economists believe that rich natural resources promote economic growth. On the contrary, some economists think that rich natural resources hinder economic growth. Based on previous studies, this paper studies the relationship between natural resource and economic growth in our country. We try to explain the "Curse of Resources" through an example of Shanxi. Finally, we give some policy recommendations to avoid the "Curse of Resources".

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Dynamics between economic growth, labor, capital and natural resource abundance in Iran: An application of the combined cointegration approach

Resources Policy ◽

10.1016/j.resourpol.2016.06.005 ◽

2016 ◽

Vol 49 ◽

pp. 213-221 ◽

Cited By ~ 56

Author(s):

Khalid Ahmed ◽

Mantu Kumar Mahalik ◽

Muhammad Shahbaz

Keyword(s):

Economic Growth ◽

Natural Resource ◽

Resource Abundance

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Foreign direct investment, natural resources and economic growth: a threshold model approach

Journal of Economic Studies ◽

10.1108/jes-03-2020-0127 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Arshad Hayat ◽

Muhammad Tahir

Keyword(s):

Economic Growth ◽

Foreign Direct Investment ◽

Natural Resources ◽

Host Country ◽

Natural Resource ◽

Direct Investment ◽

Positive Impact ◽

Threshold Model ◽

Resource Abundance ◽

Content Type

PurposeThe aim of this paper is to investigate the contingency effect of natural resource abundance on the foreign direct investment (FDI)–growth relationship in a nonlinear (threshold) model.Design/methodology/approachThe authors use the fixed effect threshold model for panel data with annual frequency for 83 countries and estimate threshold level of natural resource abundance that split the sample and change the FDI–growth relationship.FindingsThe results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold.Originality/valueThe results show that FDI has a strong positive impact on the economic growth of the host country if the host country's natural resources export is below the statistically significant estimated threshold. However, this FDI-induced economic growth is watered-down if the countries natural resources export is larger than the estimated threshold. The results are robust for alternative indicators of natural resources, i.e. natural resources rents.

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