scholarly journals Natural Resources and Civil Conflict: The Role of Military Expenditures

2021 ◽  
Vol 14 (12) ◽  
pp. 575
Author(s):  
Rabah Arezki ◽  
Markus Brueckner
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Resource Curse ◽  
Civil Conflict ◽  
Resource Rents ◽  
Important Message ◽  
Military Expenditures ◽  
Natural Resource Rents ◽  
The Relationship

Military expenditures significantly affect the relationship between the risk of civil conflict outbreak and natural resources. We show that a significant positive effect of natural resource rents on the risk of civil conflict outbreak is limited to countries with low military expenditures. In countries with high military expenditures, there is no significant effect of natural resource rents on civil conflict onset. An important message is thus that a conflict resource curse is absent in countries with sufficiently large military expenditures.

No taxation, no representation: An investigation of the relationship between natural resources and fiscal decentralization

2018 ◽  
Vol 36 (7) ◽  
pp. 1234-1255
Author(s):  
Mohammad Arzaghi ◽  
Andrew Balthrop
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Local Governments ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Government Expenditures ◽  
Government Control ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
The Relationship

Rents from natural resources can alter the relationship between central and local governments by providing a new source of government financing. We develop a model to explore the relationship between fiscal decentralization and resource abundance. Our model indicates that natural resource rents can detach central government expenditures from the tax base so that the central government can spend more to persuade a fractious periphery to remain under central government control. Thus, other things being equal, higher natural resource rents can result in less decentralized government expenditures. We empirically explore the relationship between fiscal decentralization and natural resource rents using a panel of 60 countries over the past 40 years. Empirical results support our economic model: A 1% increase in natural resource rents as a fraction of gross domestic product results in government expenditures that are 0.53% less decentralized.

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 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 A meta-analysis of natural resources and conflict

2019 ◽  
Vol 6 (1) ◽  
pp. 205316801881823 ◽  
Author(s):  
William O’Brochta
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Meta Analysis ◽  
Civil Conflict ◽  
Future Research ◽  
Aggregate Effect ◽  
Resource Wealth ◽  
Natural Resource Wealth ◽  
The Relationship ◽  
Variable Measurement

The relationship between natural resource wealth and civil conflict remains unclear, despite prolonged scholarly attention. Conducting a meta-analysis—a quantitative literature review—can help synthesize this broad and disparate field to provide clearer directions for future research. Meta-analysis tools determine both the aggregate effect of natural resources on conflict and whether any particular ways in which variables are measured systematically bias the estimated effect. I conduct a meta-analysis using sixty-nine studies from sixty-two authors. I find that there is no aggregate relationship between natural resources and conflict. Most variation in variable measurement does not alter the estimated effect. However, measuring natural resource wealth using Primary Commodity Exports and including controls for mountainous terrain and ethnic fractionalization all do significantly impact the results. These findings suggest that it may be worth exploring more nuanced connections between natural resources and conflict instead of continuing to study the overall relationship.

Oil and Democracy: Endogenous Natural Resources and the Political “Resource Curse”

2016 ◽  
Vol 70 (2) ◽  
pp. 279-311 ◽  
Author(s):  
Sarah M. Brooks ◽  
Marcus J. Kurtz
Keyword(s):  
Natural Resource ◽  
Resource Curse ◽  
Political Regime ◽  
Democratic Development ◽  
Resource Rents ◽  
Oil Revenue ◽  
History Of ◽  
Quantitative Results ◽  
Oil Wealth ◽  
The Relationship

AbstractBy the end of the twentieth century, a scholarly consensus emerged around the idea that oil fuels authoritarianism and slow growth. The natural abundance once thought to be a blessing was unconditionally, and then later only conditionally, a curse for political and economic development. We re-examine the relationship between oil wealth and political regimes, challenging the conventional wisdom that such natural resource rents lead to authoritarian outcomes. We contend that most efforts to examine the causal linkages between natural resource abundance and political regime have been complicated by the likelihood that both democracy and oil revenue are endogenous to the industrialization processes itself, particularly in its developmentalist form. Our quantitative results, based on an analysis of global data from 1970 to 2006, show that both resource endogeneity and several mechanisms of intraregional regime diffusion are powerful determinants of democratic outcomes. Qualitative evidence from the history of industrialization in Latin America yields support for our proposed causal claim. Oil wealth is not necessarily a curse and may even be a blessing with respect to democratic development.

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 Natural Resource Rent and Financial Development Nexuses in Bangladesh: The Role of Institutional Quality

2020 ◽  
Vol 4 (2) ◽  
pp. 108-114
Author(s):  
Muhammad Atif Khan ◽  
Kishwar Ali
Keyword(s):  
Natural Resources ◽  
Financial Development ◽  
Natural Resource ◽  
Institutional Quality ◽  
Financial Sector ◽  
Resource Rent ◽  
Natural Resource Rent ◽  
The Relationship

This paper examines the relationship between the development of the financial sector of the economy and natural rents. The financial sector of the economy is currently an important driver of economic growth. The study was conducted through the prism of addressing two key issues: determining the nature of the impact of natural rents on the financial development of Bangladesh; study of the role of the quality of institutional mechanisms in the relationship between natural rent and financial development of Bangladesh. The study period includes 35 years, from 1984 to 2019. The calculations were performed using an autoregressive model with a distributed lag, based on the order of integration and stationary properties of the variables of this study. The article presents the results of an empirical analysis, which showed a significant negative impact of the lease of natural resources on the financial development of Bangladesh. It is empirically confirmed that the quality of institutional mechanisms for the functioning of economic entities has a positive effect on the relationship between natural rents and the financial development of Bangladesh. The results of the study empirically confirm the hypothesis of insufficient natural resources in Bangladesh. The article emphasizes that the positive moderating role of the quality of the institutional base indicates that due to the strengthening of the institutional base, insufficient resources can become a benefit for the financial sector. The results of the study can be useful for representatives of the Government of Bangladesh from the standpoint of improving the quality of institutional infrastructure in order to ensure financial development, in which there will be positive effects from the implementation of natural resource lease processes. In the future, a study is planned to expand potential sources for the proper use of natural resource leases in Bangladesh. Keywords: natural resource rent, financial development, institutional quality, Pakistan.

Corruption and banking soundness: Does natural resource dependency matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hamid Kordbacheh ◽  
Seyedeh Zahra Sadati
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Resource Curse ◽  
Banking System ◽  
Destructive Effect ◽  
Data Set ◽  
Content Type ◽  
Factors Affecting ◽  
Resource Rents ◽  
Almost All

Purpose The natural resources curse theory argues the higher dependency on natural resources leads to many socio-economic problems. The purpose of this study is to examine the relationship between corruption and banking soundness and also to compare the extent of this effect between the two groups of rich and poor in natural resources countries. Design/methodology/approach To this aim, the authors apply a panel data set comprised of 98 countries from 2012 to 2015. Findings The results show that nations with a higher level of corruption have poorer banking soundness. The authors also find that by considering the resource curse theory and the effect of natural resource rents in the model, the adverse impact of corruption on banking soundness is more substantial in countries with a higher natural dependency level (rich in natural resources). Originality/value Though studies have been conducted on corruption and banking soundness, this paper, by using resources curse theory, articulates that corruption is one of the most critical factors affecting banking soundness and has a destructive effect on the health of the banking system and the economy of almost all countries, especially in natural resource-based economies. This study will appeal to banks authorities, governments, policymakers, oversight financial institutions and those who have a vested interest in regulating financial crimes globally. They can prevent financial and banking crises by cooperating in the fight against corruption worldwide.

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