Resource curse hypothesis and economic growth: A global analysis using bootstrapped panel quantile regression analysis

Abstract

To achieve potential economic growth is a worldwide challenge. The mentioned study aims to evaluate the impact of country's natural resources on economic growth. This analysis seeks to empirically investigate the ‘Resource Curse Hypothesis’. To ensure the purpose of the study, the work utilized panel data of 161countries from 1980 to 2021. Estimation is conducted using the panel ordinary least squares (OLS) and Bootstrapped Panel Quantile Regression (BPQR) methods. In global panel data, the outcomes indicate that natural resources playhazardous role in explaining the economic growth at 25th quantile, on the other side, in remaining quantiles (50th and75th) the natural resources induce the growth. In addition to this, the outcomes are sensitive to developed and developing economies. The findings also imply that capital formation, financial development, trade and government expenditure are constructive determinants of economic growth.