Natural resources extraction in emerging economies: Does it promote sustainable development or crowd-out real sector?

Abstract

Natural resources, whether renewable or nonrenewable, as well as environmental services, might be regarded true national riches. Natural capital also adds to other types of capital. Natural capital's contribution to the sustainable development of developing countries is an intriguing study topic. The current study delves into this topic in depth by categorizing the importance of natural resources in the growth of all rising economies. For this goal, the study employed the moments quantile regression approach on data from 1989 to 2021. The outcome demonstrates the presence of the resource curse in rising economies. However, the function of R&D and capital development is beneficial to emerging nations' economic progress. The findings imply that rising economies' strong institutional roles and sensible economic policies can turn the curse into a gift. Policies overcoming the downsides of natural resources extraction to curb resources curse is encouraged to promote real sector.