Visualizing symmetric and asymmetric settings in MMQR for natural resources extraction and economic performance: A COVID-19 perspective

Abstract

Since the contradictory debate is undergoing in the scientific work regarding the resource blessings/curse hypothesis. To solve the issue, this research analyzes the asymmetric impact of natural resources on the economic performance of four natural resources dependent economies (India, China, USA, and Japan) during the last three decades. Also, this research explored the important role of globalization, foreign direct investment, and renewable energy consumption in economic performance. The long-run equilibrium association among the parameters exists using the panel cointegration technique. Owing to the data's non-normal spread, the study opted for a non-parametric approach and found that both positive and negative resource rents adversely affect economic performance. Besides, the consumption of renewable energy significantly harms the region's economic performance. On the contrary, the impact of globalization and foreign direct investment is positive and significant during the researched period. This study evaluates the results' robustness and consistency with the literature. Based on findings, sustainable extraction of natural resources and further boosts foreign direct investment and globalization are suggested by this research.