scholarly journals GOOD GOVERNANCE AND NATURAL RESOURCE CURSE; WHICH HYPOTHESIS IS PREVAILING IN ASEAN ECONOMIES?

2020 ◽  
Vol 28 (1) ◽  
pp. 45-54
Author(s):  
Deden Iskandar ◽  
Robertus Mulyo Hendarto ◽  
Adhevyo Reza
Keyword(s):  
Economic Development ◽  
Natural Resources ◽  
Natural Resource ◽  
Good Governance ◽  
Resource Curse ◽  
Political Stability ◽  
The Other ◽  
Natural Resource Curse ◽  
Governance Practices ◽  
Control Of Corruption

This study aims to find the relevance of the natural resource curse and good governance hypothesis in ASEAN economies post-financial crises 1998. Employing Generalized Method of Moments (GMM), this study finds that good governance practices (Control of Corruption, Political Stability, and Voice and Accountability) play a role in the ASEAN economies after the great financial crisis. Thus, the hypothesis stating that good governance practices will improve economic development is confirmed. On the other hand, the observation of the natural resource curse hypothesis in ASEAN countries returns mixed results. The hypothesis states that natural resource abundance is associated with lower economic performance. This study finds that dependence on the natural resource by itself does not affect GDP. However, the natural resource curse occurs when countries with bad governance (low Control of Corruption) depend on agriculture resources. On the other hand, the natural resource becomes a blessing when the countries that rely on agriculture resources are supported with good governance practices in terms of strong Government Effectiveness, Political Stability, and Voice and Accountability.  Thus, the effect of natural resources on economic development depends on the quality of governance. This paper highlights the importance of observing the natural resource and good governance in interaction instead of in isolation and the relevance of disaggregating the indicators of good governance as well as natural resources.

scholarly journals Testing the Existence of Natural Resource Curse in Indonesia: The Role of Financial Development

2021 ◽  
Vol 22 (2) ◽  
pp. 213-227
Author(s):  
Sedwivia Ridena ◽  
Nurarifin Nurarifin ◽  
Wawan Hermawan ◽  
Ahmad Komarulzaman
Keyword(s):  
Natural Resources ◽  
Financial Development ◽  
Natural Resource ◽  
Generalized Method Of Moments ◽  
Resource Curse ◽  
Natural Resource Curse ◽  
Economic Output ◽  
Negative Effect ◽  
The Relationship

Natural resources may become a blessing that can contribute to societies’ welfare increases. Yet natural resource abundance could also become a curse for countries’ economic development. Numerous studies have investigated the relationship between natural resources and economic performance. However, the results remain ambiguous and have no consensus in the literature. In specific, most literature focused only on testing the curse’s existence, while studies that involve the role of financial development in mediating the nexus remain scarce. To the best of our knowledge, this is a pioneer study in a developing country endowed by natural resources. Using panel data of 33 provinces from 2012 to 2018, this study implements the Generalized Method of Moments (GMM) technique to examine the existence of the natural resource curse and scrutinize the role of financial development in mitigating the curse. Results show that Indonesia potentially experiences a natural resource curse. Nonetheless, the negative effect of natural resources on economic growth could be mitigated by enhancing the role of financial development to reach a certain threshold over economic output. This study recommends policymakers to not only increase financial development across the provinces but also pay more serious attention to other factors causing the natural resource curse in Indonesia.

scholarly journals IS THE CURSE OF NATURAL RESOURCES OCCURING IN INDONESIA?

2018 ◽  
Vol 11 (1) ◽  
pp. 15-27
Author(s):  
Joko Tri Haryanto
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Central Government ◽  
Resource Curse ◽  
Quadrant Analysis ◽  
Natural Resource Curse ◽  
Mining Areas ◽  
East Kalimantan ◽  
Massive Number ◽  
Early Indication

Theories explain the occurrence of natural resource curse phenomenon as a the conditions in a country has an abundance of mining sector but unsustainable patterns of development. In case of Indonesia, several studies conducted to measure natural resource curse also occurs during decentralization era. Therefore, this research conducted by analyze the performance of APBD in mining areas. By using share analysis, the highest area is East Kalimantan Province, while the lowest is NTT Province. Meanwhile, from growth, the highest area is West Java and the lowest category is Banten Province. From the quadrant analysis, four areas are in the quadrant I, seven areas in quadrant II, six areas in quadrant III and most areas in quadrant IV. This massive number of mining areas in quadrant IV shall inflict a serious note for the Central Government, could be an early indication of the emergence of natural resource curse in Indonesia.  

scholarly journals KEPEMILIKAN SUMBER DAYA ALAM TERHADAP KONDISI SOSIAL EKONOMI WILAYAH DI INDONESIA

2015 ◽  
Vol 4 (1) ◽  
pp. 51
Author(s):  
Atri Putri A ◽  
Zul Azhar ◽  
Joan Marta
Keyword(s):  
Life Expectancy ◽  
Natural Resources ◽  
Natural Resource ◽  
Average Length ◽  
Resource Curse ◽  
Gdp Per Capita ◽  
Forward Region ◽  
Natural Resource Curse ◽  
Per Capita ◽  
The Difference

This study aims to determine the difference in life expectancy, the average, the difference in GDP per capita, and differences in poverty rates between developed regions rich natural resources and developed regions poor in natural resources. This study uses Typology Klassen in sampling, The results showed that there are significant differences in life expectancy in developed regions are rich in natural resources and advanced regions poor in natural resources. There are significant differences in the average length of school in the forward region rich in natural resources and advanced regions poor in natural resources. There are significant differences in GDP per capita between developed regions rich natural resources and developed regions poor in natural resources. There were no significant differences in the levels of poverty in the developed regions rich in natural resources with advanced regions poor in natural resourcesKeyword : natural resource curse, life expetancy, length of school, GDP, poverty

scholarly journals “RESOURCE CURSE” AS A CHALLENGE FOR SUSTAINABLE DEVELOPMENT IN RUSSIA

2020 ◽  
Vol 6 (4) ◽  
pp. 55-62
Author(s):  
Zhan Zhang ◽  
Keyword(s):  
Sustainable Development ◽  
Economic Development ◽  
Natural Resources ◽  
Resource Dependence ◽  
Resource Curse ◽  
Mineral Resources ◽  
Political Stability ◽  
Dutch Disease ◽  
Energy Sources ◽  
New Energy

The term “resource curse” refers to the socio-economic problems associated with mineral resources. There is a perception that rich natural resources can be a “curse” rather than a blessing for economic development, and most countries with rich natural resources grow more slowly than countries with scarce resources. The author aims to identify the main causes of the “resource curse” phenomenon as one of the challenges for sustainable development in Russia. The following tasks are set: to analyze the origin of the “resource curse” concept, to study the analysis of Chinese, Russian, and Western researchers about the “resource curse”, to determine the conditions for this phenomenon. Special attention is paid to solving the problem of resource dependence at the regional and state levels, as well as involving cooperation at the global level on the basis of justice, equality and mutual benefit. It is noted that to get out of the “resource trap” you need not only to overcome the traditional “Dutch disease”, but also need to avoid the “American syndrome”. It was concluded that the “resource curse” can be considered as a variety of comparative advantage trap. With the development of new energy sources, countries with rich traditional energy sources face more severe challenges. Their resolution requires comprehensive reform and the creation of new growth pole for sustainable socio-economic development (which is based on political stability), on the other hand, it is necessary to avoid excessive “financialization” of the market economy.

scholarly journals Examining the “Natural Resource Curse” and the Impact of Various Forms of Capital in Small Tourism and Natural Resource Dependent Economies

2016 ◽  
Author(s):  
Petar Kurecic ◽  
Filip Kokotovic
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Natural Resource ◽  
Natural Capital ◽  
Strong Dependence ◽  
Resource Curse ◽  
Impulse Response Functions ◽  
Natural Resource Curse ◽  
Small Economies ◽  
The Impact

The question of the relevance of human and natural capital, as well as the potential adverse effect of natural capital on economic growth, has gained increased attention in development economics. The aim of this paper is to theoretically and empirically assess the relevance of several forms of capital on economic growth in small economies that are dependent upon tourism or natural resources. The empirical framework is based on Impulse Response Functions obtained from Vector Autoregressive models in which we focus on the model where economic growth is the dependent variable for ten small economies that are dependent upon either tourism or natural resources. We find that there is evidence of the ‘’natural resource curse’’, especially in the economies that have a strong dependence on resources that are easily substitutable and whose prices constantly fluctuate. We further find that in the majority of observed cases the type of capital these small economies are most dependent on for their economic growth causes negative impulses in the majority of the observed periods. The main policy recommendation should be to assure that even these small economies should strive towards further diversification and avoid dependence on only one segment of their economy.

Understanding the Boom

2020 ◽  
pp. 27-50
Author(s):  
Mark Henstridge
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Natural Resources ◽  
Developing Country ◽  
Natural Resource ◽  
Resource Curse ◽  
Resource Discovery ◽  
Resource Endowment ◽  
Near Future

This chapter sets out a framework for thinking about the challenges presented by a natural resource boom. A significant natural resource discovery creates excited expectations of near-future wealth. But the size of a boom is usually overestimated and the delay in receiving revenues is underestimated—each country that finds the opportunity of natural resources disappointing does so in its own way. The author takes stock of the sequencing, timing, and scale of the development of a natural resource endowment in a developing country; reviews the ‘resource curse’ literature; looks at benchmarks of scale and timing so as to put potential booms into the context of the challenges of economic development, growth, and structural change in Africa, including the role played by institutions. In concluding, the author details key challenges for a developing country managing a natural resource boom, and pulls together observations on policy.

scholarly journals PENGARUH MINYAK DAN GAS TERHADAP KINERJA PERTUMBUHAN EKONOMI REGIONAL: SEBUAH KUTUKAN ATAU ANUGERAH?

2018 ◽  
Vol 2 (2) ◽  
pp. 184-202
Author(s):  
Ahmad Fahriza ◽  
Djoni Hartono
Keyword(s):  
Economic Growth ◽  
Natural Resources ◽  
Natural Resource ◽  
Oil And Gas ◽  
Resource Curse ◽  
Natural Resource Curse ◽  
Natural Oil ◽  
Oil And Gas Resources ◽  
Per Capita ◽  
Using Data

Natural resources, particularly oil and gas, are great benefit to the region that owns it and become one of the region's revenue sources. Nevertheless, Sachs and Warner (1995) found a phenomenon of natural resource curse indicating that the wealth of natural resources could hamper the economic growth. This research tries to see the existence of natural resource curse phenomenon in Indonesia through the performance of regional economic growth; and observes the differences of oil and gas contribution in the economic structure as an indicator of natural resource wealth in the area. Gross Regional Domestic Product Growth (PDRB) per capita without oil and gas is an indicator of the economic growth to see if the oil and gas are inhibiting or accelerating the growth of other sectors in the region's economy. Using data from 33 provinces in Indonesia within the period of 2006-2013, this study found a positive relationship between oil and gas contribution and per capita GDP growth without oil and gas. Based on these findings, natural oil and gas resources have become a boon to the province that owns them.

scholarly journals A Multivariate VAR Model for Evaluating Sustainable Finance and Natural Resource Curse in West Africa: Evidence from Nigeria and Ghana

2021 ◽  
Vol 13 (5) ◽  
pp. 2847
Author(s):  
Olatunji Abdul Shobande ◽  
Joseph Onuche Enemona
Keyword(s):  
Natural Resource ◽  
Critical Role ◽  
Resource Curse ◽  
Policy Implications ◽  
Vector Autoregressive ◽  
Natural Resource Curse ◽  
Cointegration Tests ◽  
Sustainable Finance ◽  
Private Investors ◽  
Sustainable Financing

The financial sector plays a critical role in society by mediating resources and assets within the economy between surplus and deficit units. Therefore, they have a great responsibility for the sustainability and prosperity of natural endowments. This study aimed to determine whether sustainable finance matters for the natural resource curse in Nigeria and Ghana. The empirical evidence is based on the Bayer and Hanck combined cointegration tests and Vector Autoregressive/Vector Error Correction Granger causality tests. The study highlights the importance of sustainable financing in natural resources management. Our findings also confirmed the existence of the financial resource curse in Nigeria and Ghana. Likewise, the medium through which sustainable finance affects the natural resource curse has been identified as the human development index (economic welfare). This current study has critical policy implications that suggest the need to establish a vibrant, sustainable financing strategy to assist domestic private investors with a strong interest in natural resource exploration and development, taking into account macroeconomic sustainability. Additionally, it also important to build a strong financial market which allows for policies designed to promote natural resource management.

Asta-Ja Framework: A Peaceful Approach to Food, Water, Climate, and Environmental Security Coupled with Sustainable Economic Development and Social Inclusion in Nepal

2021 ◽  
Author(s):  
Durga D Poudel
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Human Resources ◽  
Natural Resources ◽  
Social Inclusion ◽  
Good Governance ◽  
Economic Transformation ◽  
Environmental Security ◽  
Development Framework ◽  
Sustainable Conservation

Sustainable conservation, development, and utilization of natural and human resources is necessary for accelerated economic growth and fast-paced socio-economic transformation of Nepal. Asta-Ja Framework, which is a theoretically grounded grassroots based peaceful and self-reliant planning and development approach, offers practical strategies for sustainable conservation and development of natural and human resources enhancing food, water, climate, and environmental security, accelerated economic growth, and socio-economic transformation of Nepal. Asta-Ja includes interconnected eight resources in Nepali letter, Ja, – Jal (water), Jamin (land), Jungle (forest), Jadibuti (medicinal and aromatic plants), Janashakti (manpower), Janawar (animal), Jarajuri (crop plants) and Jalabayu (climate). Asta-Ja Framework is a unifying framework for planning and resources development and has a strong footing on science, business, and eastern philosophy. While providing practical guidelines for achieving food, water, climate and environmental security, this article presents Nepal Vision 2040, which is developed considering challenges that Nepal is currently facing and its available Asta-Ja resources, envisioning that Nepal’s economic development reaching at the par of developed nations by 2040. Key strategic sectors identified in Nepal Vision 2040 include smallholder mixed-farming system, agro-jadibuti industrialization, protection of drinking water sources, climate change adaptation, environmental pollution control, conservation of natural resources, infrastructure, tourism, renewable energy, alleviation of inequalities, and good governance. This article demonstrates strategies for addressing social discrimination and inequalities through the process of Asta-Ja community capacity-building and self-reliant development. Ecological balance of Asta-Ja resources is necessary for sustainable natural resources, economic development, and community resiliency. The Government of Nepal is suggested to adopt Asta-Ja Framework as its national planning and development framework for sustainable economic growth and fast-paced socio-economic transformation of the country.

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