Abstract
This study aims to find the relationship between energy resource dependence and economic growth in consideration of interprovincial heterogeneity. This paper first uses panel data from 14 provinces with rich energy resources in China between 2001 and 2016 as a whole to test the energy resource curse hypothesis. It finds that there is no obvious resource curse from a general perspective. It further makes time prediction and transmission channel analysis based on regressions of each province and classifies them into four groups according to the different degrees of the resource curse. It shows the different roles of resource dependencies in different groups. Twelve provinces are subject to different degrees of the resource curse, among which, six provinces would eventually experience negative economic growth if they increase the degree of resource dependence. Next, this study discusses the mechanism of one particular group, “invisible energy resource curse”, which is when energy resources directly promote but indirectly hinder economic growth. Finally, based on the results, the present study offers policy suggestions according to provinces’ heterogeneous curse levels.
Highlights
Since the abundance of natural resources can slow economic growth, resource-poor economies often vastly outperform resource-rich economies in economic growth [1,2]
Since the energy resource curse exists in energy resource-rich regions, this paper focuses on 14 provinces that are rich in energy resources in China to test the energy resource curse hypothesis
The present study investigated 14 resource-abundant provinces and conducted panel regressions of the provinces’ energy resource dependency over the period from 2001 to 2016 to test the resource curse hypothesis
Summary
Since the abundance of natural resources can slow economic growth, resource-poor economies often vastly outperform resource-rich economies in economic growth [1,2]. Energy resource exploitation would slow down their economic growth or even cause a stagnant economy in the long run Researchers have confirmed this conjecture in several studies on energy resource-dependent economies [13,14,15,16,17]. Havranek et al [22] note that approximately 40% of empirical studies have found energy resource curse, while just 20% have found energy resource blessing Most of these studies focus on the national level rather than the provincial level. Most Chinese scholars believe that the phenomenon of the energy resource curse does exist at the provincial level They carry out detailed studies on possible transmission channels of the energy resource curse.
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