A nexus of natural resource rents, institutional quality, human capital, and financial development in resource-rich high-income economies

2021 ◽  
Vol 74 ◽  
pp. 102259
Author(s):  
Muzzammil Hussain ◽  
Zhiwei Ye ◽  
Adnan Bashir ◽  
Naveed Iqbal Chaudhry ◽  
Yingjun Zhao
Keyword(s):  
Human Capital ◽  
Financial Development ◽  
Natural Resource ◽  
Institutional Quality ◽  
High Income ◽  
Resource Rents ◽  
Natural Resource Rents

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.

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.

NATURAL RESOURCE RENTS AND INTERNAL CONFLICT: THE ROLE OF INSTITUTIONAL QUALITY

2021 ◽  
pp. 1-21
Author(s):  
UMAIMA ARIF ◽  
MUHAMMAD USMAN ◽  
FARZANA NAHEED KHAN
Keyword(s):  
Developing Countries ◽  
Natural Resource ◽  
Institutional Quality ◽  
Internal Conflict ◽  
Resource Rent ◽  
Government Institutions ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Natural Resource Rent ◽  
The Impact

The study explores the impact of natural resource rents on internal conflicts and examines how the aforementioned relationship is influenced by institutional quality. The study is based on a panel dataset of 70 countries for the period 1991–2018. The empirical evidence shows that natural resource rent leads to an increase in internal conflict in both developed and developing countries. However, the impact of natural resource rent on internal conflict is negative in the presence of better quality of government institutions for the global sample, developed and developing countries. Hence, natural resource rent leads to a reduction in internal conflict when it is supported by better institutional quality in terms of high bureaucratic quality, rule of law and low corruption in government institutions. Overall, the study finds that natural resource rent leads to an increase in internal conflict, however, this relationship is mitigated by better institutional quality.

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 Dilemma of Natural Resource Abundance: A Case Study of Kuwait

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989970
Author(s):  
Ruba A. Aljarallah ◽  
Andrew Angus
Keyword(s):  
Human Capital ◽  
Natural Resource ◽  
Institutional Quality ◽  
Resource Abundance ◽  
Distributed Lag ◽  
Resource Rents ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Using Data

There is a lively debate about the relationship between a nation’s natural resource abundance and economic growth. Some view natural resource abundance as a curse, whereas others view it as a blessing. This study examines the economic, social, and political effects of resource abundance in an oil-rich country, Kuwait, using data from 1984 to 2014. This study analyzes the short- and long-run impacts of resource rents on per capita gross domestic product (GDP), productivity, human capital, and institutional quality. The study reveals through autoregressive distributed lag modeling and error correction modeling that resource rents increase per capita GDP merely in the short-run; however, resource rents deteriorate productivity, human capital, and institutional quality in both the short and the long-run. These results indicate that, for Kuwait, the overreliance on its natural resources has been detrimental over the long-run. The study suggests that there is a need to improve the quality of institutions and enhance the level of human capital to get economic sustainability and development over time.

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