Effect Of Natural Resources Research Articles

Unlocking the impact of international financial support to infrastructure, energy efficiency, and ICT on CO2 emissions in India

Financial resource constraints prevent developing nations from investing in the infrastructure needed for the green transition. For this reason, it is well known that numerous financial aid programs are offered globally, mainly to wealthy developing nations whose economies are predicated on high energy consumption. It hasn't been looked into if these resources are allocated to worthwhile projects. This study examines how foreign financial assistance in this area affects India's infrastructure emissions. The effects of natural resources, economic growth, information and communication technology, energy efficiency (oil and gas), and natural resources on the environment are being investigated as well. The novel multivariate quantile on-quantile regression technique is used in this context to examine a time-series data set spanning 2000–2021. According to the findings, there is a correlation between reduced carbon emissions and increased foreign financial aid. Likewise, advancements in energy efficiency and information and communication technologies also benefit the ecosystem. However, India's emissions are rising due to its abundant natural resources and economic expansion. Policy recommendations were made regarding the need for India to use international financial aid primarily to strengthen environmentally friendly infrastructure rather than solving problems such as current account deficit or budget deficit.

Unpacking the environmental quality through the effects of natural resources, renewable energy consumption, banking development and industrial value addition: An empirical evidence from BRICS countries

This study explores the association between natural resources rent, industrial value addition, banking development, renewable energy consumption, total reserves and environmental quality in the dynamic context of BRICS nations from 1995 to 2019. BRICS economies are responsible for global greenhouse gas emissions and confront pressing environmental challenges, including biodiversity loss and pollution. For the dependent variable, the environmental quality, the study constructed a composite index using PCA for all environmental indicators where interdependencies among variables are prevalent. Besides this, the study incorporates two interaction terms to determine the indirect influence of natural resource rent and banking development on environmental quality through the mediating role of industrial value addition. By applying the CS-ARDL technique, the outcomes of the study reveal that natural resources rent, industrial value addition, and total reserves positively influence ENQ, indicating the adverse consequences of industrial sectors on environmental quality and continued environmental degradation due to resource-intensive industrial production, underscoring the urgency of sustainable resource management. In contrast, banking development and renewable energy consumption negatively influence ENQ, signifying the positive role of developed banking sectors in supporting eco-friendly projects and enhancing environmental quality. This study offers valuable insights for policy interventions to foster a more sustainable future.

The effects of natural resources and integration on green economic recovery: Foreign direct investment and environmentally friendly technologies in China

China's remarkable economic expansion during this period has been accompanied by heightened awareness of the urgent need for responsible resource management and sustainable development. This study investigates the interplay between natural resource efficiency and economic development in China over the two decades from 2000 to 2020. Through rigorous econometric analysis, the research explores whether natural resource efficiency acts as a catalyst for economic growth. Focusing on the nexus between economic development and sustainable utilization of natural resources, this study examines the extent to which improvements in resource efficiency contribute to China's economic progress. By utilizing comprehensive data and advanced analytical techniques, the findings shed light on the intricate relationship between these two critical dimensions. The outcomes of this study carry implications for policymakers, economists, and environmentalists, offering insights into how a nation's ecological footprint can be harmonized with its economic aspirations.

Revisiting resources curse hypothesis in China: Exploring the asymmetric effect of green investment and green innovation

China's economy is booming, growing by over 9 percent annually over the past quarter-century. However, several environmental issues threaten China's long-term viability, including rising energy consumption, reliance on coal, and worsening air pollution. Therefore, the present research is conducted for Revisiting Resources Curse Hypothesis in China by identifying any asymmetric impact and the non-linear relationship between Natural Resources (NTR), Green Investment (GIV), and Green Innovation (GIN) on Financial Development (FDV) through QARDL model, which has allowed a thorough examination of the problem at varying quantiles. The findings of the QARDL validated the presence of the Resource Curse hypothesis. Additionally, the effects of NTR with the quantiles of FDV yielded negative relationships, GIV with the quantiles of FDV yielded positive relationships, and GIN with the quantiles of FDV yielded positive relationships. Based on the findings, it is recommended that China develop strategies and achieve sustainable growth to enjoy the benefits of FDV and economic growth without hampering the environmental goals.

Testing the Theory, Blessing or Resource Curse? The Effect of Natural Resources on Political Violence in Africa

Political conflicts in Africa have intensified due to the competition for natural resources by various conflicting parties and their conflict intensification. Previous studies have shown that cell phone coverage plays a significant role in the occurrence of these conflicts. This paper explores the impact of oil reserves and diamond abundance on cell phone coverage in Africa. The authors also investigate how rebels are motivated by these resources to engage in conflicts. The Scobit model (Nagler 1994) is used to analyse the cases of unbalanced conflict, which is found to be more accurate than the Logistic model. The results indicate that diamond abundance is a resource blessing, while oil reserves lead to a resource curse. However, the latter finding needs to be more consistent across robustness checks, suggesting that the effects of different natural resources on African political conflicts remain debatable.

Human Capital Formation in the Era of Resource Exploitation in Chad: A Survey of Major Actors in Charge of Human Capital and Natural Resources

This paper examines the contribution of natural resources to the growth of human capital stock in Chad. Indeed, natural resources are known as the main lever for the development of developing nations; particularly education. However, the natural resource curse phenomenon strongly influences the production of human capital in developing countries. The question being to know what is the effect of natural resources in the formation of human capital in the education sector in Chad? As part of this research, we opted for a hypothetical-deductive approach with two secondary hypotheses, namely: natural resources positively impact human capital in Chad and human resource management negatively influence the education sector in Chad. The questionnaire was administered to 356 teachers in the French-speaking public sector. The results show that natural resources influence human capital, especially education (Ross, 2004). However, with regard to the management of human resources in the education sector, the results show that the exploitation of natural resources does not allow good management of human resources. The negativity of the contribution of Natural Resources to the management of human resources is thus verified (Gylfaçon, 2001). Theoretical and managerial implications are proposed, as well as proposals for future research arising from the limitations of the study.

Effect of Natural Resources on the Size of Informal Economy in sub-Saharan Africa: An Empirical Investigation

Despite the extensive literature on the resource curse, little is known about the empirical relationship between natural resource abundance and the size of the informal economy. Theoretical predictions suggest that natural resource abundance contributes to the growth of the informal economy because the investments and expenditures associated with natural resource revenues limit opportunities in the formal sector, thereby channeling more labor and firms into the informal sector. This theory is empirically tested using data from 44 sub-Saharan Africa countries over the period 1991-2015. The main results reveal a positive and significant relationship that natural resource abundance favors the growth of the informal sector in SSA. These results are robust to several tests. Furthermore, the positive relationship between natural resource abundance and the size of the informal economy becomes negative when good and strong institutions are in place.

Multipoint Layout Planning Method for Multienergy Sources Based on Complex Adaptive System Theory

Summary. With the continuous expansion of grid-connected power generation from renewable energy sources, such as wind and light, the forms of power sources are more diversified. The coupling and uncertainty of multiple energy sources will cause significant changes in the characteristics of the power system. Problems like the complexity of the power system lack a scientific and complete explanation. This paper comprehensively considers the regional weather conditions, the uncertainty of the output of wind and solar energy sources, and the time and space complementary characteristics of multiple power sources. Based on the theory of complex adaptive systems, a systematic and holistic optimization planning method is studied. Combining the idea of complementarity because of differences, a multipoint layout planning and design method for multienergy power systems is proposed to give full play to the synergistic effects of natural resources, achieve optimal resource allocation, and provide a theoretical basis for improving the consumption of wind and renewable energy. Taking an actual provincial power system in China as an example, through the comparison of production simulation calculations and multiscenario analysis and planning methods, the proposed method can significantly increase the consumption of wind and solar renewable energy.

The Effect of Natural Resources on Economic Growth in West Africa: The Mediating Role of Human Capital Disaggregation

The purpose of this paper is to examine the conditional impacts of natural resources on economic growth through human capital development. This study employs Dynamic Ordinary Least Squares (DOLS) and Vector Error Correction Model (VECM) methodologies in a panel dynamic analysis. The research demonstrates that natural resources and trade openness are the key contributors to lower economic growth. On the other hand, labour force, physical capital, and human capital development measures are effective in boosting growth. Furthermore, the estimates are much higher in the model of tertiary school enrolment (TSE) than in the model of secondary school enrolment (SSE). This means that TSE performs better than SSE in terms of augmenting natural resources to improve growth. From a policy aspect, governments in such nations should devise policies that will improve human capital. The emphasis must be on improving tertiary education quality.

The effect of natural resources and economic factors on energy transition: New evidence from China

Recently, energy transition is an essential element for global development and needs the attention of recent researchers and policymakers. Thus, the present research investigates the impact of natural resources (total natural resources rent and natural gas rent) and economic factors (energy import, economic growth, and population growth) on the energy transition in China. Secondary data were collected from world development indicators (WDI) from 1971 to 2019. The Augmented Dickey-Fuller (ADF) test, Phillips–Perron (PP) test, Kwiatkowski–Phillips–Schmidt–Shin (KPSS) and “zivot-andrews structural break unit root” test was also utilized to check for stationarity among the autoregressive distributed lag model (ARDL) along with the error correction model (ECM) were used to examine the relationships between constructs. The results found that natural resources (total natural resources rent and natural gas rent) and economic factors (energy import, economic growth, and population growth) have a positive association with energy transition in China. The study concluded that energy transition is the essential requirement due to high usage of natural resources and high economic development. These results are helpful for energy sector regulators when formulating the rules and regulations related to energy transition in the country.

Natural resources, population aging, and environmental quality: analyzing the role of green technologies.

Depletion of natural resources and population aging are the two most critical challenges for environmental sustainability. However, the research that integrates natural resources and population aging in the same environmental policy framework is still scant. Therefore, this study investigates the linkage between natural resources, population aging, green technologies, and ecological footprint (EF) of G7 countries. In addition, this study also explores the moderating effects of green technologies on the relationship between natural resources and EF. Drawing on the panel times series data from 1970 to 2017, we employ a cross-sectional autoregressive distributed lags (CS-ARDL) model for short- and long-run empirical estimation. Our empirical analysis indicates that natural resource use exacerbates ecological degradation by increasing EF. By contrast, population aging and green technologies present positive ameliorative effects on EF. Interestingly, the interaction effect of green technologies and natural resources indicates that the damage to ecological quality from natural resources can be effectively improved by means of green technologies, thus maintaining environmental sustainability. Furthermore, the results of panel quantile regression show that the effects of population aging and green technologies on the overall ecological footprint distribution in G7 countries are heterogeneous, while the effects of natural resources on the distribution of all conditions of the ecological footprint are positive. In addition, this paper verifies the causal relationship between the variables using the Dumitrescu and Hurlin test. The findings reveal that the relevant changes in all explanatory variables are bilaterally causally associated with EF. Based on these results, this paper provides some feasible policy recommendations.

Investigating the determinants of ecological and carbon footprints. Evidence from high-income countries

<abstract> <p>High-income countries have experienced rapid economic growth, urbanization, consumption of renewable and non-renewable energy, increased trade dependency, and the attainment and maintenance of higher living standards over the last four decades, while also experiencing an increasing trend in environmental degradation. These experiences have fueled our desire to learn more about the factors that influence the ecological footprint and carbon footprint of high-income countries. The purpose of the present study is to investigate the effects of natural resources, urbanization, GDP per capita, population, and fossil fuels on ecological and carbon footprint for 34 high-income countries over the period 2003–2015. Using the STIRPAT model, the results confirm the environmental Kuznets curve hypothesis in the case of total ecological footprint while the link between economic growth and carbon footprint is in U-shape. In terms of total ecological footprint determinants, population reduction as well as efficient urban design, are viable solutions. The findings support the positive and statistically significant influence of population, urbanization, and fossil fuels on total ecological footprint, as well as the negative impact of ecological efficiency. The findings of the carbon footprint suggest that reduction in coal and oil consumption, as well as increasing the use of gas as a source of energy, are all viable choices to mitigate carbon footprint. Furthermore, increasing ecological efficiency could be a viable policy option for reducing high-income countries' footprints.</p> </abstract>

Natural resources, institutions and the quality-adjusted human capital

PurposeThe purpose of this paper is to investigate the resource rents–quality-adjusted human capital nexus and the impact of quality of institutions.Design/methodology/approachFor a large data set of 161 countries for the period 1996–2018 (yearly and 4-year periods), fixed effect estimation method is applied to investigate the impact of resource rents on quality-adjusted human capital and the role of quality of institutions on this relationship.FindingsThe paper found little evidence on the negative, significant and direct impact of total resource rents on quality-adjusted human capital. However, the results show that the negative effect of resource rents can be mediated by the quality of institutions. This result is robust to a long list of controls, different specifications and estimation techniques, as well as several robustness checks. Therefore, institutional quality seems to play a critical role in determining the indirect impact of natural resources on human capital. Moreover, the obtained results demonstrate that this resource adverse effect depends on the type of resource rents; in particular, high dependency on oil rents in developing countries appears to harm human capital.Research limitations/implicationsThe paper shows that it is not obvious that total resource rents decrease human capital and found that the coefficient is no longer significant in the two-way fixed effects model. However, the analysis has emphasized the crucial role of political institutions in this relationship and has shown that countries with higher quality of institutions make the most of their resource rents transiting to a better human capital environment. This result is found to be robust to a list of controls, different specifications and estimation techniques, as well as several robustness checks. In addition, we demonstrate that not all resources affect human capital in the same way and found that oil rents have a significant negative effect on human capital. This is an important distinction since several countries are blessing from oil rents. From this we conclude that the effect of natural resources on human capital varies across different types of commodities. On the other hand, the interaction between institutions and the sub-categories of resource rents shows that oil rents can increase human capital only in developing countries with higher quality of institutions (above the threshold). This result is also still hold while using alternative measures of political institutions.Practical implicationsThe results in this paper have important policy implications. In particular, results highlight important heterogeneities in the role resource rents to the economy. As international commodity prices have shown high volatility in recent years, it is important for policy makers to understand the rents. Rents which are the difference between the price of a commodity and the average cost of producing it can have different effects in the economy, including the human capital. It is shown that in countries with low-quality institutions, natural resource rents negatively affect institutional quality, leading to conflicts, corruption and fostering rent-seeking activities. Overall, this reinforces the elite at the power that, obviously, is interested in preserving the status quo. In other words, there is a vicious circle between resource rents and low-quality institutions that impedes institutional change. How to regulate this in the best possible way requires a good understanding of how resource rents are generated and appropriated for different sectors, their different effects and how people react to these rents. The evidence suggests the policy toward better political institutions may help countries to improve social outcomes such as health and education which offer high social returns.Originality/valueThe paper is part of the author's PhD research and is an original contribution.

Evolving complex networks with logistic property: Global versus local growth

Considering the retarding effect of natural resources, environmental conditions, and other factors on network growth, the capacity of network nodes to connect to new edges is generally limited. Inspired by this hindered growth of many real-world networks, two types of evolving network models are suggested with different logistic growth schemes. In the global and local logistic network, the total number of network edges and the number of edges added into the network at each step are in line with the Logistic growth, respectively. The most exciting feature of the Logistic growth network is that the growth rule of network edges is first fast, then slow and finally reaches the saturation value [Formula: see text]. Theoretical analysis and numerical simulation reveal that the node degrees of two new networks converge to the same results of the BA scale-free network, [Formula: see text], as the growth rate [Formula: see text] approaches to 0. The local logistic network follows a bilateral power-law degree distribution with a given value of [Formula: see text]. Meanwhile, for these two networks, it is found that the greater [Formula: see text] and [Formula: see text], the smaller the average shortest paths, the greater the clustering coefficients, and the weaker the disassortativity. Additionally, compared to the local logistic growth network, the clustering feature of the global logistic network is more obvious.

Linking natural resource dependence and industrialization in sub-Saharan African countries

ABSTRACT Despite the growing literature on natural resources, little is known about the effect of natural resources on industrialization, particularly in sub-Saharan African countries. The aim of this paper is to fill this gap by assessing how natural ressources affect the industrialization process in 27 sub-Saharan African countries over the period 2000–2016. To carry out our investigation, we used several estimation methods including Ordinary Least Squares (OLS), Fixed Effect (FE) and Generalized Moments Methods (GMM). The results show that there is a negative relationship between natural resource dependence and industrialization. A U-shaped relationship between natural resource dependence and industrialization is established. Furthermore, the disaggregation of natural resource rents shows that while oil rent, gas rent and mineral rent hamper the industrialization process, the effect of forest rent and coal rent on the industrialization is positive. Finally, we show that governance plays an important role in mitigating the negative impact of natural resources on industrialization. Thus, governance can be an effective way to break the resource curse in sub-Saharan African countries.

Determinants of comparative advantage of crude oil production: Evidence from OPEC and non‐OPEC countries

AbstractThis study investigates the determinants of comparative advantage of crude oil production in 10 OPEC and 10 non‐OPEC countries over the period 1990–2016. The study calculates the comparative advantage using the Normalized Revealed Comparative Advantage index (NRCA) and further estimates the relationship between the comparative advantage and three explanatory variables using panel autoregressive distributed lag (panel ARDL) in a separate panel for each group of countries. The result of NRCA shows that all OPEC countries have a comparative advantage in crude oil production, whereas five of the 10 non‐OPEC countries have a comparative advantage in crude oil production. The result of the ARDL indicates that crude oil price (COP) and average of daily production (ADP) positively affect comparative advantage of crude oil production. The effect of natural resources (PR) is negative, suggesting that an increase in PR decreases the comparative advantage of these countries—a result that aligns with the philosophy of Hotelling rent. Finally, bidirectional Granger causality is established between all the investigated variables in both panels.

GOOD GOVERNANCE AND NATURAL RESOURCE CURSE; WHICH HYPOTHESIS IS PREVAILING IN ASEAN ECONOMIES?

This study aims to find the relevance of the natural resource curse and good governance hypothesis in ASEAN economies post-financial crises 1998. Employing Generalized Method of Moments (GMM), this study finds that good governance practices (Control of Corruption, Political Stability, and Voice and Accountability) play a role in the ASEAN economies after the great financial crisis. Thus, the hypothesis stating that good governance practices will improve economic development is confirmed. On the other hand, the observation of the natural resource curse hypothesis in ASEAN countries returns mixed results. The hypothesis states that natural resource abundance is associated with lower economic performance. This study finds that dependence on the natural resource by itself does not affect GDP. However, the natural resource curse occurs when countries with bad governance (low Control of Corruption) depend on agriculture resources. On the other hand, the natural resource becomes a blessing when the countries that rely on agriculture resources are supported with good governance practices in terms of strong Government Effectiveness, Political Stability, and Voice and Accountability. Thus, the effect of natural resources on economic development depends on the quality of governance. This paper highlights the importance of observing the natural resource and good governance in interaction instead of in isolation and the relevance of disaggregating the indicators of good governance as well as natural resources.

FAKTOR YANG MEMPENGARUHI PERTUMBUHAN EKONOMI SUMATERA UTARA

The results from the fixed effects model analysis show that the natural resources,gross fixed capital formation, and technology have a significant and positive effectsimultaneously on economic growth in North Sumatra. While labor has a nonsignificant effect on economic growth in North Sumatra. Effect of natural resources, gross fixed capital formation, and technology on economic growth is inelastic and shows a diminishing return for the all the sources of growth. The largest source of economic growth that affects economic growth in North Sumatra is gross fixed capital formation by 0.497 and the largest increase in economic growth due to changes in the sources of economic growth is Pematangsiantar by 5,235 percent, while the smallest is Tanjungbalai City by 2,234 percent.

Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?

In order to promote economic activity, a country needs a productive and sound financial structure and financial development as a backbone of the economic development of the country. Our study thus aims to investigate the “resource curse” hypothesis in the presence of globalization, human capital, and economic growth in China during the period 1971–2017. Within a multivariate framework, we provide more rigorous analysis through several econometric methods, for instance, the Bayer and Hanck cointegration, the Autoregressive Distributed Lag (ARDL), robustness check by fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), canonical cointegrating regression (CCR), and Breitung-Candelon spectral Granger causality testing. Our findings show that the effect of natural resources on financial development is negative and confirm China's resources curse hypothesis, while globalization, human capital, and economic development lead to improving the financial development of the country. The causality analysis reveals that natural resources, human capital, and economic growth have a long-term relationship with financial development, while globalization short and medium-term linked with financial development. In order to promote financial sector development, our empirical outcomes have significant policy implications that highlight the need to encourage globalization and the development of human capital to ensure the effective management of natural resources.

How Natural Resource-Based Industry Affect Sustainable Development? An Evolutionary Study of China

The effects of natural resources on regional sustainable development is widely discussed by scholars and policymakers. However, most of the researchers concentrated on economic growth and technical development; evidence of how natural resources affect the soft environment is relatively lacking. Different from the neo-classical economics perspective of resource allocation, we used the evolutionary economics scope of factor creation and historical evolution to explore the effect on China’s regional entrepreneurship laid by the natural resource distribution on the early stage of China. The resource curse is explained from the aspect of regional entrepreneurship development in China. Based on the provincial panel data from China, in China’s industrial statistical yearbook and China’s statistical yearbook, we applied PLS-SEM (Partial Least Squares Structural Equation Model) to explore the path from natural resources to regional entrepreneurship. We also examined the mediating effect at the organizational scale, industry structure, the degree of regional openness, and the quality of human capital in the path between natural resource and entrepreneurship. The result shows that natural resources in the early-stage has negative effects on the growth of the entrepreneurship. Besides, industry structure and organizational scale are significant in terms of mediation effect in the path of the resource curse. An in-depth analysis is provided, and implications are discussed based on the results with the aim of revealing the mechanism and path-dependence of China’s regional development. The implications of this research include the suggestion of adapt the industry structure and motivate start-ups.