Natural resources and green economic growth: An analysis based on heterogeneous growth paths

Abstract

This research examines whether natural resources (Res) lead to the “resource curse” of green economic growth (GTFP) under heterogeneous growth path conditions and whether market-oriented institutions affect the relationship between Res and GTFP. This paper presents the heterogeneous marginal effects of Res on GTFP under different growth path conditions via a data-driven finite mixture model with 2008–2018 panel data from China's provinces. The results show that, first, there are two sets of finite mixture models that are optimal. In growth path A, Res reduce green economic growth, leading to the “resource curse” phenomenon. In growth path B, Res contribute to the growth of GTFP, resulting in the “resource blessing” phenomenon. Second, the relationship between Res and GTFP is influenced by the market-oriented institution. Specifically, the more market-oriented the sample is, the more likely Res are to be a “resource blessing”. Third, 12 provinces switched their growth paths during the study period, with most going from growth path A to growth path B. The results of this paper offer a new perspective for research related to the “resource curse”.