Natural resources extraction of RCEP trade bloc: Examining geopolitical risk and economic situation

Abstract

Natural resource extraction is a critical driver of many countries' economic growth and development. Given the significance of resource extraction for RCEP countries, this study investigates the effects of natural resource rent on the international trade of RCEP members. We use energy efficiency, GDP and geopolitical risk as control variables. Resources extraction, geopolitical risk and economic situation are the key variables of interest. The findings of this study highlight the important role of natural resource rents, geopolitical risk, GDP, and energy efficiency in shaping international trade patterns within the RCEP trade bloc. The detrimental impact of oil rent on international trade has been justified by the results obtained from the quantile regression analysis for each quantile. The study emphasizes the importance of policymakers and businesses understanding the complex interactions between these factors and their implications for international trade. The study also provides relevant policy implications for RCEP economies following their resources sector, economic structure, and geopolitical risk.