Natural resource rents and military expenditures in the Middle East and North Africa: a long-run perspective

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.

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Nigerian Governance Challenge: Exploring the Role of Natural Resource Rents

Global Journal of Emerging Market Economies ◽

10.1177/0974910120919001 ◽

2020 ◽

Vol 12 (3) ◽

pp. 335-358

Author(s):

Fisayo Fagbemi ◽

Grace Omowumi Adeoye

Keyword(s):

Natural Resource ◽

Good Governance ◽

Political Commitment ◽

Causality Test ◽

Resource Rents ◽

Long Run ◽

Short Run ◽

Resource Wealth ◽

Natural Resource Rents ◽

Natural Resource Wealth

Nigeria is a glaring example of a country where weak public institutions are pervasive in spite of its huge natural resource wealth. The presence of natural resource abundance has exacerbated the overwhelming development challenge in the economy. While the upshot of most empirical findings of the resource impact covers how the growth path is determined through the channel of institutions, the question as to why resource rents often fail to stimulate improved governance is more critical than ever. Hence, the study examines the effect of natural resource rents on the quality of governance in Nigeria for the period 1984–2017, using ARDL bounds test approach, Dynamic Least Squares (DOLS), and Granger Causality test based on Vector Error Correction Model (VECM). Results reveal that natural resource rents have an insignificant effect on governance indicators in the long-run as well in the short-run, suggesting that natural resource windfalls have a shallow effect on the development of good governance. However, further evidence indicates that pervasive institutional gaps in Nigeria could be stimulated or caused by the overdependence on natural resource rents and entrenched mismanagement tendencies. Thus, the study suggests that maintaining strong political commitment, curtailing overdependence on natural resources, and ensuring sound management of natural resource wealth are central for improved governance.

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Natural Resources and Civil Conflict: The Role of Military Expenditures

Journal of Risk and Financial Management ◽

10.3390/jrfm14120575 ◽

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.

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Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation

Tourism Economics ◽

10.1177/1354816620983131 ◽

2021 ◽

pp. 135481662098313

Author(s):

Hassan F Gholipour ◽

Reza Tajaddini ◽

Usama Al-mulali

Keyword(s):

International Business ◽

Natural Resource ◽

Positive Impact ◽

Dutch Disease ◽

Annual Data ◽

Panel Ardl ◽

Resource Rents ◽

Long Run ◽

Short Run ◽

Natural Resource Rents

This article explores the long-run and short-run effect of natural resource rents on inbound and outbound business travels in resource-abundant economies. By applying panel ARDL/PMG models for 25 countries with annual data for 2005–2017, our results show that increases in dependency on natural resources lead to lower demand for inbound and outbound business travels in the long run. The short-run analyses indicate that while natural resource rents have a significant and positive impact on outbound business travels, they do not affect inbound business travels.

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Natural Resource Rents-Capital Flight Nexus in Selected ECOWAS Countries: Evidence from Non-Linear ARDL Approach

International Journal of Sustainable Development & World Policy ◽

10.18488/journal.26.2021.102.81.97 ◽

2021 ◽

Vol 10 (2) ◽

pp. 81-97

Author(s):

Abdulfatai A Adedeji ◽

Sherifat W Kogbodoku

Keyword(s):

Natural Resources ◽

Natural Resource ◽

Capital Flight ◽

Asymmetric Effect ◽

Distributed Lag ◽

Resource Rents ◽

Long Run ◽

Short Run ◽

Natural Resource Rents ◽

Symmetric Effect

The challenge of capital flight in the ECOWAS sub-region is worrisome. Huge revenue from natural resources also contributes to the relocation of available resources necessary for the development of the region. The study identifies the revenue from natural resources as a key driver of capital flight in the region. Hence, this study analyzed the effect of natural resource rents on capital flight in ECOWAS countries accounting for the role of asymmetry. Also, the study employed the nonlinear autoregressive distributed lag (NARDL) model to account for short-run and long-run asymmetries. The results revealed the presence of asymmetry in five countries, while two countries displayed symmetric effects. It also showed that the symmetric effect of natural resource rents on capital flight is weak for Guinea and Nigeria in the short-run while the long-run effect is not more pronounced for Nigeria. In the case of asymmetric effect, natural resource rents amplified capital flight in Cape Verde and Sierra Leone. Further evidence shows that the non-linearity of natural resource rents does not encourage capital flight in Burkina Faso, Cote d’Ivoire, and Ghana. Hence, the countries should promote transparency and accountability in the management of proceeds from natural resources to enhance development in the region.

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A cross-national study of the association between natural resource rents and homicide rates, 2000–12

European Journal of Criminology ◽

10.1177/1477370816661741 ◽

2016 ◽

Vol 14 (4) ◽

pp. 393-414 ◽

Cited By ~ 9

Author(s):

Paul B. Stretesky ◽

Michael A. Long ◽

Michael J. Lynch

Keyword(s):

Natural Resource ◽

Growth Models ◽

National Study ◽

Homicide Rates ◽

Natural Resource Extraction ◽

Resource Rents ◽

Long Run ◽

Natural Resource Rents ◽

Cross National Study ◽

Level 2

Countries that rely on natural resource rents (that is, the revenue generated from the sale of natural resources) may suffer from a variety of social problems. This exploratory study reviews the natural resource extraction literature to derive a ‘natural resource rents–homicide’ hypothesis. Data for 173 countries for the years 2000 to 2012 are examined to determine if there is a correlation between natural resource rents and homicide rates. Multilevel growth models suggest that natural resource rents are positively correlated with homicide rates within countries (level 1) but not between them (level 2). Importantly, the correlation between natural resource rents and homicide is strongest when natural resource rents are lagged. We conclude by suggesting that increasing natural resource rents may be counterproductive over the long run and sow the seeds for a future increase in homicide.

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Growth Recoveries (from Collapses)

10.18235/0003419 ◽

2021 ◽

Author(s):

Juan Francisco Meneses ◽

José Luis Saboin

Keyword(s):

Exchange Rate ◽

Natural Resource ◽

Exchange Rate Regime ◽

Democratic Accountability ◽

Resource Rents ◽

Financial Account ◽

External Conditions ◽

Economic Collapse ◽

Low Levels ◽

Natural Resource Rents

This paper analyzes the behavior of a long list of economic variables during episodes of recovery from an economic collapse. A set of stylized facts is proposed so as to depict what in this work is called \saygrowth recoveries. Through different estimation techniques, it is inferred under which conditions and policies the likelihood of experiencing a growth recovery increases. The results of the paper indicate that collapses tend to occur in countries with high dependence on natural resource rents, macroeconomic mismanagement, low levels of democratic accountability and rule of law and high levels of conflict. Recoveries, on the other hand, tend to be longer than collapses and are more likely to occur in contexts of: improved external conditions, less natural resource rents, balanced fiscal accounts, where the exchange rate corrects but within a more fixed exchange rate regime and a more restricted financial account, and where there are: rebounds in private consumption, increases in international trade and improvements on property rights.

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