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 Renewable Energy Consumption and Local Environmental Effects for Economic Growth: The Role of Financial Development and Foreign Direct Investment

2021 ◽  
Author(s):  
Itbar khan ◽  
lei han ◽  
Hayat khan
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Energy Consumption ◽  
Financial Development ◽  
Environmental Quality ◽  
Low Income ◽  
Carbon Emission ◽  
Renewable Energy Consumption ◽  
Middle Income ◽  
Income Groups

Abstract The use of renewable energy improves environmental quality by reducing carbon emission and influence economics growth where carbon emission also effect economic growth of a country. The economic theory of tourism also indicates that tourism development enhance economic growth though spillovers as well contribute to climate change. The inflow of FDI and financial development enhance economic growth however its also effect environmental quality. Based on the ongoing debate, the present research trying attempts to explore the effect of CO2 emission and renewable energy consumption, FDI and financial development on economic growth in different income grouped countries to know whether these impacts are the same for the low income, middle income and high income countries on economic growth? Using panel data for high income, low income & middle income countries for the period of 1980–2018, the current study found that all variables effect economic growth significantly where FDI and carbon emission are positive while renewable energy consumption and financial development are negative for economic growth in the whole sample while its differ in the income groups. These studies have shown that these variables are not the same as the economic growth of economic growth and different income groups are not the same, but it changes. In addition, the foundation of this study has a great deal of recommendations for income Group economic decision make-up.

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 Short-term effects of national-level natural resource rents on life expectancy: A cross-country panel data analysis

PLoS ONE ◽  
2021 ◽  
Vol 16 (5) ◽  
pp. e0252336
Author(s):  
Isaac Lyatuu ◽  
Georg Loss ◽  
Andrea Farnham ◽  
Mirko S. Winkler ◽  
Günther Fink
Keyword(s):  
Economic Growth ◽  
Life Expectancy ◽  
Natural Resources ◽  
Population Health ◽  
Natural Resource ◽  
Short Term ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Cross Country ◽  
The Relationship

While a substantial amount of literature addresses the relationship between natural resources and economic growth, relatively little is known regarding the relationship between natural resource endowment and health at the population level. We construct a 5-year cross-country panel to assess the impact of natural resource rents on changes in life expectancy at birth as a proxy indicator for population health during the period 1970–2015. To estimate the causal effects of interest, we use global commodity prices as instrumental variables for natural resource rent incomes in two-stage-least squares regressions. Controlling for country and year fixed effects, we show that each standard deviation increase in resource rents results in life expectancy increase of 6.72% (CI: 2.01%, 11.44%). This corresponds to approximately one additional year of life expectancy gained over five years. We find a larger positive effect of rents on life expectancy in sub-Saharan Africa (SSA) compared to other world regions. We do not find short-term effects of rents on economic growth, but show that increases in resource rents result in sizeable increases in government revenues in the short run, which likely translate into increased spending across government sectors. This suggests that natural resources can help governments finance health and other development-oriented programs needed to improve population health.

scholarly journals The Potency of Eco-Innovation, Natural Resource and Financial Development on Ecological Footprint: A Quantile-ARDL Based Evidence from China

2021 ◽  
Author(s):  
Sahar Afshan ◽  
Tanzeela Yaqoob
Keyword(s):  
Natural Resources ◽  
Financial Development ◽  
Environmental Degradation ◽  
Natural Resource ◽  
Ecological Footprint ◽  
The Novel ◽  
Resource Rents ◽  
Long Run ◽  
Novel Method

Abstract Given the alarming deterioration of the environment, the present analysis investigates the role of eco-innovation, natural resources and financial development in influencing the environmental degradation of China. Applying the novel method of Quantile-ARDL, the current research is beneficial in portraying the dependence patterns of the variables with special emphasis on the nexus of eco-innovation and ecological footprint across numerous quantiles of the distribution which has not been examined so far in the literature. The empirical findings reveal that in the long run, eco-innovation reduces the level of ecological deterioration in China across all quantiles. On the other hand, the results suggest that the increase in credit to the private sector and natural resource rents augment environmental degradation. The outcomes imply that the over-dependence on natural resources and financial development can worsen the goals of sustainable development in China if the strategies of conservation and management are ignored. Moreover, witnessing the favourable role of eco-innovation, competent policies and regulations can be made towards sustainable efficient technologies and eco-friendly energy sources to halt global warming.

scholarly journals ESSAYS ON THE DUTCH DISEASE

2021 ◽  
Author(s):  
Nazanin Behzadan
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Exchange Rate ◽  
Income Distribution ◽  
Foreign Aid ◽  
Natural Resource ◽  
Dutch Disease ◽  
Equal Distribution ◽  
Resource Rents ◽  
Natural Resource Rents

In this dissertation I analyze the effect of within-country income inequality on economic outcomes. I develop a new model of international trade with non-homothetic preferences whereby within-country income distribution affects the pattern of trade and economic growth. An appreciation of the real exchange rate inducing a production shift to the sector with less long-run growth potential is known as the Dutch disease and in this model the disease is triggered by within-country income differences. First, I show that the Dutch disease can arise solely from inequality in the distribution of natural resource rents where the country with the less equal distribution will have less production of manufacturing goods and less development of learning-by-doing in this sector. As opposed to conventional models, where income distribution has no effect on economic outcomes, an unequal distribution of the resource wealth can generate the Dutch disease. In addition, alternative forms of foreign transfers, such as foreign aid and remittances, interact with the income distribution in dissimilar manners and generate differences in spending patterns, the real exchange rate, production patterns, and the pattern of international trade. I show that while foreign aid can cause economic stagnation, remittances can in fact foster economic growth. I also provide a range of empirical tests of the theoretical model, including both difference and system GMM estimations in a dynamic panel setting and disentangle the effects of inequality and institutional quality. My empirical analyses support the hypothesis that inequality indeed plays a significant role in whether being resource-rich is a blessing or a curse for a country. The more unequal is the distribution of natural resource rents, the stronger is the disease. Moreover, I verify my hypothesis that foreign aid and remittances are not similar in generating the Dutch disease using data from a panel of countries and industries covering the years 1991-2009 while controlling for the issues of omitted variable bias and the endogeneity of the transfers. Finally, a similar method is used in order to draw empirical evidence that lends credence to the positive relation between more equal distribution of resource rents and higher manufacturing growth.

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