Growth Hypothesis Research Articles

Does disaggregated renewable energy stimulate economic growth? The role of spatial effect

ABSTRACT This study attempts to empirically investigate the validity of energy-led growth hypothesis for renewable energy sources for developing countries. To this end, this paper estimates the impacts of disaggregated renewable energy sources on economic growth within a multivariate framework including the disaggregated non-renewable energy sources, capital, labour, institutional quality and human capital by using panel data of 32 lower/upper middle income countries over the period 2009 to 2019 and applying spatial dynamic techniques. Our results show the significantly positive impacts of individual renewable sources on economic growth. This study provides the first piece of evidence of spatial spillover effects from renewable energy on economic growth for developing countries. Our analysis reveals the significantly negative impacts of hydroelectricity on economic growth. Our analysis also confirms the importance of labour, institutional quality and human capital in driving economic growth.

Long-term trends in human body size track regional variation in subsistence transitions and growth acceleration linked to dairying

Evidence for a reduction in stature between Mesolithic foragers and Neolithic farmers has been interpreted as reflective of declines in health, however, our current understanding of this trend fails to account for the complexity of cultural and dietary transitions or the possible causes of phenotypic change. The agricultural transition was extended in primary centers of domestication and abrupt in regions characterized by demic diffusion. In regions such as Northern Europe where foreign domesticates were difficult to establish, there is strong evidence for natural selection for lactase persistence in relation to dairying. We employ broad-scale analyses of diachronic variation in stature and body mass in the Levant, Europe, the Nile Valley, South Asia, and China, to test three hypotheses about the timing of subsistence shifts and human body size, that: 1) the adoption of agriculture led to a decrease in stature, 2) there were different trajectories in regions of in situ domestication or cultural diffusion of agriculture; and 3) increases in stature and body mass are observed in regions with evidence for selection for lactase persistence. Our results demonstrate that 1) decreases in stature preceded the origins of agriculture in some regions; 2) the Levant and China, regions of in situ domestication of species and an extended period of mixed foraging and agricultural subsistence, had stable stature and body mass over time; and 3) stature and body mass increases in Central and Northern Europe coincide with the timing of selective sweeps for lactase persistence, providing support for the "Lactase Growth Hypothesis."

The Dynamic Relationship Between Financial Development, Economic Growth, Foreign Direct Investment and Trade Openness: Evidence from South Asian Countries

This study examines the nature of the association among financial development, economic growth, foreign direct investment and trade openness in four South Asian countries from the period 1990–2019. The study employed Granger Causality test in Vector Error Correction Model (VECM) framework to find out the dynamic relationship among the variables. Further, variance decomposition analysis (VDA) and impulse response function (IRF) is also applied to determine the relationships among the variables beyond the sample period. The empirical result shows support for growth-led financial development, growth-led foreign direct investment and growth-led trade openness hypothesis for India. For Pakistan, the results suggest growth-led financial development and growth-led foreign direct investment. In the case of Sri Lanka, the results suggest foreign direct investment-led growth and trade openness-led growth hypothesis. The results do not support any kind of causal relationship among the variables in the case of Bangladesh in the short run. Furthermore, no bidirectional causality among the variables was found for all the countries. The findings imply that all four countries should adopt policies to promote further trade liberalization, financial sector development and also need to fast-track reforms to improve the investment climate and attract investments to attain high economic growth in the long run.

The effect of foetal and early childhood growth on metabolic derangements of Sri Lankan children

BackgroundPrevious studies have shown that delayed prenatal growth followed by accelerated postnatal growth plays a significant role on the onset of adult metabolic diseases. The present study aimed to identify the effects of intrauterine and later growth on metabolic derangements among children in Colombo, Sri Lanka.MethodsA school-based cross-sectional study was conducted among 5–15-year-old children selected using a two-stage probability-proportionate-to-size cluster sampling technique. Birth-weight (BW) was extracted from records (denotes prenatal growth) and body mass index(BMI)-Z score and fat mass(FM) measured to denote the current growth of children. Fasting and random blood glucose, lipid profile and blood pressure(BP) were measured. The sample was stratified by age (5—< 10 and 10—15 years); was further categorized into tertiles of BW and BMI-Z scores. Based on these two parameters, metabolic parameters were evaluated within each age category.ResultsThe sample comprised 833(494 boys) healthy school children. Metabolic parameters did not significantly differ by sex or across BW tertiles of each BMI-Z score tertile. However, significant changes in some metabolic parameters were noted across the BMI-Z score tertiles of each BW tertile. Children belonging to the lowest BW and highest BMI-Z score tertiles had worst metabolic profiles, while those in the lowest BW as well as BMI-Z score tertile were protected. Excessive fat deposition seemed to move children to higher BMI-Z score tertiles.ConclusionPoor prenatal growth is not the sole risk factor for abnormal metabolic profile found in childhood. Those who gain fat, denoted by weight, during early childhood are at a higher risk of developing metabolic abnormalities than those who do not. This favours the accelerated postnatal growth hypothesis.

Transport infrastructure, economic growth, and transport CO2 emissions nexus: Does green energy consumption in the transport sector matter?

Attaining Sustainable Development Goals (SDGs) is important to control the adverse impacts of climate change and achieve sustainable development. Among the 17 SDGs, target 13 emphasizes enhancing urgent actions to combat climate-related changes. This target is also dependent on target 7, which advocates enhancing access to cheap alternative sustainable energy. To accomplish these targets, it is vital to curb the transport CO2 emissions (TCO2) which increased by approximately 80% from 1990 to 2019. Thus, this study assesses the role of transport renewable energy consumption (TRN) in TCO2 by taking into consideration transport fossil fuel consumption (TTF) and road infrastructure (RF) from 1970 to 2019 for the United States (US) with the intention to suggest some suitable mitigation policies. Also, this study assessed the presence of transport environmental Kuznets curve (EKC) to assess the direction of transport-induced growth. The study used the Bayer-Hanck cointegration test which utilizes four different cointegration techniques to decide cointegration along with the Gradual Shift causality test which considers structural shift and fractional integration in time series data. The long-run findings of the Dynamic Ordinary Least Squares (DOLS) test, which counters endogeneity and serial correlation, revealed that the transport renewable energy use mitigates as well as Granger causes TCO2. However, transport fossil fuel usage and road infrastructure enhance TCO2. Surprisingly, the transport EKC is invalid in the case of the US, and increased growth levels are harmful to the environment. The association between TCO2 and economic growth is similar to a U-shaped curve. The Spectral Causality test revealed the growth hypothesis regarding transport fossil fuel use and economic growth connection, which suggests that policymakers should be cautious while decreasing the usage of transport fossil fuels because it may hamper economic progress. These findings call for revisiting growth strategies and increasing green energy utilization in the transport sector to mitigate transport emissions.

The relevance of international tourism and natural resource rents in economic growth: Fresh evidence from MINT countries in the digital era.

The Mexico, Indonesia, Nigeria, and Turkey (MINT) economies are recognized to be bedevilled with many obstacles hampering the economic expansion. In the meantime, many of these problems have not been comprehensively scrutinized in the context of the countries. In recent years, natural resources and tourism development have significantly increased in MINT economies. This study scrutinizes the relationship between natural resource rent, mobile use, foreign direct investment, international tourism, and economic growth in a balanced panel data of four MINT nations from 1971 to 2019. The key finding of this study shows that there is a positive and significant impact of foreign direct investment, natural resource rent, mobile use, and international tourism on MINT's economic growth. Furthermore, the tourism-led growth hypothesis is supported empirically in the case of MINT nations. Furthermore, the Granger causality analysis demonstrates that unidirectional causality is discovered from economic growth to tourism. The study recommends that MINT nations implement some practical tourism strategies to push up economic development, and in turn economic growth will positively contribute to the tourism sector.

The Export-Led Growth Hypothesis: Some Evidence from the 8-ASEAN

Abstract This paper examines the validity of the growth hypothesis underlying exports within the context of the developing country sector, given the life of a general marketplace among countries. It used annual data from developing countries in the Association of Southeast Asian Nations (ASEAN) from 2009 to 2018 and analyzed the impact of capital, employment, land and exports on the import sector on agricultural growth. The method used is Estimated generalized least square (EGLS) panel data analysis. The results of the study show that, in an Export Led Growth (ELG) scenario, data exists for analysis in eight ASEAN countries, specifically Brunei, Cambodia, Indonesia, Laos, Malaysia, Thailand, the Philippines and Vietnam. Production input factors (capital, labor and land) have a significant and positive impact on agricultural economic growth, while trade factors (exports and imports) have a negative impact on economic growth. In order to expand the contribution of the agricultural sector, capital, labor and agricultural land must be large enough to have a positive impact on agricultural growth. JEL classification numbers: J43. Keywords: Agricultural export, Agricultural growth, Free trade, Developing countries.

Does economic growth promote electric power consumption? Implications for electricity conservation, expansive, and security policies

The purpose of this study is to determine the relationship between electric power consumption per capita (kWh) and real GDP per capita (PEN, constant 2007 prices), in Peru, during the period 1971–2014. The four theoretical hypotheses behind this relationship are the growth hypothesis –electricity consumption explains economic growth–, the conservation hypothesis –economic growth explains electricity consumption–, the feedback hypothesis –mutually affecting explanation between electricity consumption and economic growth–, and neutrality hypothesis –electricity consumption does not explain economic growth and vice versa–. Empirically, we initially conclude that the conservation hypothesis can be confirmed using the Granger Causality test, after estimating the dynamic impacts of the long-run equilibrium and short-run models. We highlight the inelastic behavior of electric power consumption per capita with regard to real GDP per capita. These results have implications for electricity conservation, expansive and security policies. We also discussed investments in electricity generation, transmission and distribution from renewable energy sources such as hydro, wind and solar. These eco-sustainable energies also called green and clean energies, are necessary for the sustainability of the electric power demand and the level of national electrification.

How far does the central bank influence its economies? The example of Algeria

This study focused on Algeria and it looked at how education quality affected the knowledge economy. The theoretical anchor was the endogenous or new growth hypothesis. Secondary sources were used to get panel-structured data that spanned 48 Algerian provinces in 22 years (1999–2020). The equations were estimated using the fixed-random effect model and Hausman test, Also the Kao (Engle Ganger-based) cointegration test proved that the series did indeed have a long-run connection. The findings indicated that the knowledge economy was boosted by a rise in students’ Baccalaureate and Intermediate test success rates. This is due to the fact that a rise in exam success rates indicates that individuals at various educational levels are now receiving education of a higher caliber, and the economy depends on this caliber of education. The rise in students and professors is a sign that there are more knowledgeable people and specialized educators accessible to fuel the knowledge economy. As more educated citizens pass their exams and graduate from college, they are hired from the labor market into industries as significant production factors whose skills, values, and knowledge acquired through specialized training are expected to promote machine handling and coordination of other human and nonhuman production factors to fuel the knowledge economy. Teachers should be provided with ongoing professional development opportunities to help them provide instruction at all educational levels, according to a recommendation. This would improve their ability to educate and inspire students and help them do better on their intermediate and baccalaureate exams.

Assessing the impact of quality of education on the knowledge economy: evidence from Algeria

This research was focused on Algeria and looked at how education quality affected the knowledge economy. Two indicators of the knowledge economy—the number of fixed line subscribers and the number of internet subscribers—were examined for their effects on Algeria’s educational system. The theoretical anchor was the endogenous or new growth hypothesis. The study used an ex-post facto research design. Secondary sources were used to get panel-structured data that spanned 48 provinces and 22 years (1999–2020). The equations were estimated using the fixed-random effect model and Hausman test. The Kao (Engle Ganger-based) cointegration test proved that the series did indeed have a long-run connection. The findings indicated that the knowledge economy was boosted by a rise in students’ Baccalaureate and Intermediate test success rates. This is due to the fact that a rise in exam success rates indicates that individuals at various educational levels are now receiving education of a higher caliber, and the economy depends on this caliber of education. The rise in students and professors is a sign that there are more knowledgeable people and specialized educators accessible to fuel the knowledge economy. As more educated citizens pass their exams and graduate from college, they are hired from the labor market into industries as significant production factors whose skills, values, and knowledge acquired through specialized training are expected to promote machine handling and coordination of other human and nonhuman production factors to fuel the knowledge economy. Teachers should be provided with ongoing professional development opportunities to help them provide instruction at all educational levels, according to a recommendation. This would improve their ability to educate and inspire students and help them do better on their intermediate and baccalaureate exams. To make it easy for instructors and academics to participate, the training should be offered as sandwich courses, seminars, conferences, workshops, and even full-time training programs.

Gazelle companies in the Russian economy: Innovation, steady rise, and crisis response

Goal: verification of the most popular hypotheses found in the world academic literature on High Growth Companies (HGCs) using Russian empirical data and statistics. Research methodology: desk research of publications; analysis of statistics from Ruslana, the database of Russian and Ukrainian companies (maintained by Bureau van Dijk — a Moody’s Analytics company) which contains financial indicators, tax reporting data, and other information; analysis of information from the Professional Market and Company Analysis System (SPARK) and Federal Institute of Industrial Property (Rospatent) databases on intellectual property ownership; and review of companies through formal questions in survey interviews. Findings: this study demonstrates the key contribution of the HGCs sector to economic growth: HGCs, which represent 15 % of the total number of companies with revenues and more than 10 employees, generate 60 % of the revenue growth of all Russian companies and employment growth from 1.5 million to 2.5 million in 2017–2020. In the past, 77 % of HGCs grew sporadically, which does not support the hypothesis of unsustainable growth for most HGCs and can be the basis for using the rapid growth criterion for selective government support of business entities. There is evidence that innovative companies have more stable rates of rapid growth over the five-year period prior to this research. Based on the company survey, an assumption is formulated about the high resilience of Russian HGCs to external shocks including pandemic, Russia’s military operations, and sanctions against the country, and the HGCs’ willingness to continue growth despite existing difficulties and risks. Originality and contribution of the authors: for the first time in Russia, this study analyzes the full set of Russian HGCs using a comprehensive statistical database. This allows us to compare HGCs from different industries and identify their industry-specific characteristics. In addition, we identify a group of innovative HGCs and show the characteristics of this type of companies. The materials obtained as a result of the review of companies supplement the results of the analysis of statistical data.

Effects of stress-dependent growth on evolution of sulcal direction and curvature in models of cortical folding

The majority of human brain folding occurs during the third trimester of gestation. Although many studies have investigated the physical mechanisms of brain folding, a comprehensive understanding of this complex process has not yet been achieved. In mechanical terms, the “differential growth hypothesis” suggests that the formation of folds results from a difference in expansion rates between cortical and subcortical layers, which eventually leads to mechanical instability akin to buckling. It has also been observed that axons, a substantial component of subcortical tissue, can elongate or shrink under tensile or compressive stress, respectively. Previous work has proposed that this cell-scale behavior in aggregate can produce stress-dependent growth in the subcortical layers. The current study investigates the potential role of stress-dependent growth on cortical surface morphology, in particular the variations in folding direction and curvature over the course of development. Evolution of sulcal direction and mid-cortical surface curvature were calculated from finite element simulations of three-dimensional folding in four different initial geometries: (i) sphere; (ii) axisymmetric oblate spheroid; (iii) axisymmetric prolate spheroid; and (iv) triaxial spheroid. The results were compared to mid-cortical surface reconstructions from four preterm human infants, imaged and analyzed at four time points during the period of brain folding. Results indicate that models incorporating subcortical stress-dependent growth predict folding patterns that more closely resemble those in the developing human brain. Statement of SignificanceCortical folding is a critical process in human brain development. Aberrant folding is associated with disorders such as autism and schizophrenia, yet our understanding of the physical mechanism of folding remains limited. Ultimately mechanical forces must shape the brain. An important question is whether mechanical forces simply deform tissue elastically, or whether stresses in the tissue modulate growth. Evidence from this paper, consisting of quantitative comparisons between patterns of folding in the developing human brain and corresponding patterns in simulations, supports a key role for stress-dependent growth in cortical folding.

An Investigation into the Role of Tourism Growth, Conventional Energy Consumption and Real Income on Ecological Footprint Nexus in France

Previously documented studies in the literature on how tourism leads to economic growth in the form of tourism-led growth hypotheses (TLGH) has been investigated. This study presents a new perspective on the growth of tourism by considering its impact on conventional energy consumption, real income level, and emission via the channel of globalization. Sequences of econometric tests were conducted to validate the hypothesized claims between tourism development and growth impact on conventional energy consumption and pollution proxy by ecological footprints, globalization GDP per capita, biocapacity, and tourists for the case of France. Empirical evidence from the Granger causality test presents a uni-directional causality from ecological footprints to GDP per capita and from biocapacity to ecological footprints. The correlation matrix shows interrelation amongst series with biocapacity significantly correlating with ecological footprints with tourist’s arrival having a positive correlation with ecological footprints and a negative one with biocapacity. GPD per capita was found to positively affect the ecological footprints and have a negative correlation with biocapacity and a significant relationship with tourists' arrivals. Additionally, globalization exerts a positive impact on ecological footprints, and its effect on biocapacity was found to be negative although globalization's effect on tourists’ arrivals and per capita GDP is significant. The ARDL estimation indicated biocapacity as a neutral agent for ecological footprints, tourist arrivals having a negative impact on ecological footprints, and globalization significantly affecting ecological footprints. From these findings, it is evident that tourism growth has a significant impact on energy consumption and pollution. Policy recommendations were also provided in this study accordingly.

Which Hypothesis is Valid for OECD Countries in the Context of the Relationship between Energy Consumption and Economic Growth? A Panel Data Analysis

In the study, panel data analysis was conducted on 32 OECD countries covering the period 1990-2018. To analyse the effect of energy consumption on economic growth, first, a cross-section dependence test of the variables was carried out, then CADF Test, which is the most suitable unit root test based on the obtained results results, was applied. According to the findings of the Hausman, autocorrelation, and heteroscedasticity tests, it has been decided to use the Driscoll-Kraay test for the model’s forecast. The forecast results demonstrate that energy consumption positively affects economic growth. Westerlund ECM Panel Cointegration Test was conducted to determine the long-term relationship, and it concluded that the variables acted together in the long term. Emirmahmutoglu &amp; Kose and Dumitrescu &amp; Hurlin tests were used to determine the direction of the relationship between energy consumption and growth. Through the results of both tests, a maximum number of countries emerged respectively in the null hypothesis with no causality relationship and then in the growth hypothesis explaining the causality relationship from energy to growth. Along with the panel fisher and panel Z_NT test results of both causality tests, a causality relationship has been detected from energy to growth.

Analysis of the Potential Impact of the African Continental Free Trade Agreement (AfCFTA) on the Nigeria Economy.

This paper assesses the potential impact of the Africa Continental Free Trade Agreement (AfCFTA) on the Nigeria economy. Autoregressive Distributed Lag (ARDL) Model were employed on quarterly data variables, including export and import trade for the period, March 2010 – June 2020. The result validates the trade-led growth hypothesis in the case of AfCFTA and Nigeria economic growth. Showing export trade as positively related with gross domestic product in the long run, agreeing with economic theory, that export impact positively on gross domestic product. Import indicates negative effect on gross domestic product in the long run. The error correction term (ECT) coefficient indicates that at 29.14% the disequilibrium due to the shock in the previous quarters is adjusted back to the long run equilibrium in the current quarter. The study suggests that for Nigeria to truly benefit from the AfCFTA, an outward-oriented strategy should be adopted, through trade composition by switching from exports of raw materials and semi-manufactured goods to high valued-added goods. Also, the government should scale up issues of productivity in the real sector of the economy and shift from being a net importer to a net exporter of non-oil products. Our results contradict earlier observers of Nigeria, who have argued that the implementation of the AfCFTA could reduce the tariff, revenue accruals, frustrate industrialization, and promote the dumping of products on the Nigerian economy.

Exports and long-run growth: The case of Spain, 1850-2020

ABSTRACT We analyse in this paper the relationship between international trade and economic growth from the point of view of one of the most traditional hypotheses within this field, namely, the export-led growth hypothesis, for the case of Spain in a long-term perspective of 170 years. Exports seem to have played a positive, though modest, role in promoting economic growth in the Spanish economy over the whole period, mostly due to the higher productivity associated with the export sector. The contribution of exports to growth, however, seems to have been stronger in the final years of the 19th century, unlike the rest of the period, where it proved to be negligible.

Exports, Imports, and Economic Growth in South Asia: Evidence Using a Multivariate Time-series Framework

This paper examines the export-led growth hypothesis for the five largest economies of the South Asian region using a multivariate time-series framework. The South Asian countries present an interesting case study in view of their increasing outward orientation and adoption of export promotion policies as part of their growth strategies. A key feature of the study is the explicit incorporation of imports in the analysis to make allowance for their role in the export-economic growth relationship. While controlling for imports, the results indicate bi-directional causality between exports and output growth in Bangladesh, India, and Sri Lanka in the short-run. The study finds long-run equilibrium relationships among exports, imports, and output for Bangladesh and Pakistan. However, for India, Nepal, and Sri Lanka, no evidence of a long-run relationship among the relevant variables is found. These results are in contrast to some earlier work that found the export-led growth hypothesis to be a long-run phenomenon for all countries in the region.

A Dynamic Analysis of the Relationship among Human Development, Exports and Economic Growth in Pakistan.

This study investigates the econometrically empirical evidence of both the short-run and long-run interrelationships among human development, exports and economic growth in an ARDL framework for Pakistan. This study also examines causal linkages among the said variables by applying the Augmented Granger Causality test of Toda-Yamamoto (1995). By using data on Pakistan’s real GDP, real exports and Human Development Index (HDI) for the period 1970-71 to 2008-09, three models have been estimated. The results show cointegration between economic growth, physical capital, real exports and human development when human development is taken as dependent variables. Furthermore, unidirectional Granger causality running from real GDP to real exports has been found in Bivariate, Trivariate and Tetravariate causality framework. The inclusion of HDI as a measure of human development reduces the physical capital share in real GDP whereas it improves the robustness of the regression model. Real GDP seems to provide resources to improve human development in only the long-run while human capital accumulation does not seem to accelerate real GDP both in the short-run and the long-run. The empirical results of the study do not support ‘export-led growth hypothesis’ and human capital-based endogenous growth theory in case of Pakistan, however, it does support ‘growth-driven exports hypothesis’ in case of Pakistan. JEL classification: O11 Keywords: Human Development, Exports, Economic Growth, ARDL, Causality

Fiscal Policy, Growth, Financial Development and Renewable Energy in Romania: An Autoregressive Distributed Lag Model with Evidence for Growth Hypothesis

This research aims to identify the influence of fiscal policy, financial development and economic growth on the increase of renewable consumption in Romania. To achieve our objective, we employ bivariate regressions through the Autoregressive Distributed Lag method, over the 2000–2020 period, to examine these influences. We find clear evidence that the variables observed (implicit tax rate on energy, external debt stocks, real GDP per capita, environmental tax revenues from energy taxes, and market capitalisation of listed domestic companies) have significant effects on the use of renewable energy. Four unidirectional causal relationships were identified in the long run: two from independent variables towards the dependent variable and two from the dependent variables towards two other independent variables. The importance of this study is that its results can contribute to the finding of the most suitable solutions to improve renewable energy consumption in Romania and mitigate the impact of climate change. Consequently, the results of this study reveal significant conclusions and policy recommendations for Romania moving towards sustainable and green economic growth, through a balanced set of policies and measures smartly applied, accompanied by a solid rate of absorption of green funds.

Investigating the impacts of biomass energy consumption and natural resource rent on economic growth under various regimes in emerging economies.

In view of the increase in environmental degradation and the deterioration of natural resources, a set of previous studies has focused on clean energy sources, especially biomass energy. Although studies on the effects of biomass energy on economic growth have been given increasing attention recently, this research topic remains insufficiently investigated and the results remain inconclusive. Emerging countries, whether or not they are abundant in natural resources, rely heavily on energy sources that promise economic growth while being clean. This study examines the effects of biomass energy and natural resource rents on economic growth in the case of 14 selected emerging countries during the period 1984-2017, by applying a long-term approach and also following an analysis of various effects under different quantiles. The paper is aimed at developing a sustainable growth model by studying the varying economic effects of biomass energy consumption and natural resource rents (NRR) at different scales of economic growth. The purpose of the paper is, therefore, to verify whether biomass energy as a renewable energy can constitute a lever for economic expansion in different economic cycles. Panel quantile regression was used to analyze the varying effects of biomass energy consumption on economic growth, supported by a long-term analysis based on the Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods. The findings showed that emerging countries did not experience the same effects of biomass energy and natural resource rents on their economic growth. Indeed, the results of the quantile regression support the neutral hypothesis and suggest that biomass energy and natural resource rents do not have positive effects on economic growth whatever the level of economic development of the selected emerging countries. Further analysis revealed that the growth hypothesis is confirmed only for Oil-Rich Emerging Countries (OREC) and for medium and high levels of economic growth. The long-term analysis based on the FMOLS and DOLS techniques also supports the positive effects of biomass energy consumption on economic growth. The findings also indicated that only Brazil, Russia, India, and China (BRIC countries) benefit from positive effects of natural resource rents on economic growth in the long term and for the different quantiles. The originality of this paper lies in its provision of a method for decision makers to reconcile natural resources and biomass energy as a renewable energy source in their economic development strategies based on recorded economic growth.