Natural Resource Rents Research Articles

Natural Resources Rent and Finance in the Presence of Corruption Control: An Asymmetric Approach

Natural Resources Rent and Finance in the Presence of Corruption Control: An Asymmetric Approach

Role of natural resource and mineral rent on economic development: Perspective on green reforms and financial management

This study aims to establish an empirical framework to determine the role of total natural resource rent and forest rent in financial development and to shed light on the perspective of green growth and technological advancement by using time-series data between 1990 and 2022 in the context of Chile. According to econometric testing, Technological Innovation (0.31) and Total Natural Resource Rent (0.02) positively affect financial development. However, the coefficient of forest rent (−0.06) has a negative and significant impact on Chile's financial development. Energy from renewable sources (−0.69)in Chile negatively impacts green growth, whereas trade openness increases green growth. In Chile, wavelet coherence analysis revealed a high correlation between financial development, green reforms, technological innovation, and carbon emission. The study suggested that, first, policymakers should carefully evaluate the forest management techniqueas studies have shown the adverse effect of forest rent on financial development. Second, encouraging renewable energy resources and guaranteeing ongoing economic developmentaccording to the detrimental impact of renewable energy on green growth should be balanced. Last, capacity building at different levels should be invested in to implement policies regarding natural resources.

Sustainable Central Asia: Impact of fintech, natural resources, renewable energy, and financial inclusion to combat environmental degradation and achieving sustainable development goals

The prime objective of the current study is to investigate the impact of financial inclusion, fintech, natural resources rent and renewable energy consumption on the CO2 emission of Cemental Asian countries. The study is carried out on the sample of Central Asian Countries over the period of 20 years from 2000 to 2019.The Central Asian states predominantly rely on coal as their primary fuel source for electricity generation. Coal served as the predominant fuel for power generation in Kazakhstan during the year 2020. Over 50% of Kyrgyzstan's electricity needs are met by coal. Uzbekistan and Tajikistan are coal-producing nations. The study has employed the NL-ARDL estimate to examine the hypothesis relationships, and the results of the study reveal that factors such as financial inclusion, Fintech, natural resource rent and renewable energy has significant impact on CO2 emission. The findings of the study also have a significant impact on the policy implications and long-term viability of Central Asian nations. These policies should be in accordance with SDG7 (Affordable and Clean Energy) and 13 (Climate Action). Central Asia's policymakers should balance economic benefits with environmental risks when extracting natural resources, emphasizing responsible resource management in line with SDG 15 (Life on Land), ensuring a balance between potential economic benefits and environmental risks.

Impact of energy imports, renewable electricity production, alternative, and nuclear energy sources on natural gas resource rents.

The world faces several problems related to natural gas resource rents and energy production from renewable sources. One of the main problems is the influence of energy imports, manufacturing exports, and alternative energy sources on natural gas and electricity production from renewable sources. Energy imports, manufacturing exports, and alternative energy sources can impact natural gas and electricity production. This paper examines natural gas resource rents and electricity production from renewable sources nexus from 1971 to 2021, using energy imports, manufacturer's exports, and alternative energy sources in China. Electricity production from renewable sources and manufacturing exports are negatively associated with natural gas resource rents. Energy imports and alternative energy sources positively relate to natural gas resource rents in China. These results suggest that the energy sector in China is highly interconnected and that policies that seek to promote renewable energy sources and other alternatives can positively affect natural gas resource rents. China needs to develop an energy policy considering the policy implications of energy imports and natural gas resource rents. Such a policy should focus on increasing domestic production, reducing energy imports, and ensuring adequate revenue from natural gas resource rents. Additionally, regulations could be implemented that support the development of alternative energy sources, such as requiring utilities to purchase a certain percentage of their power from renewable sources.

A roadmap for sustainable global supply chain distribution: Exploring the interplay of ECON-ESG factors, technological advancement and SDGs on natural resources

The continuity of increasing Natural Resource Rents (NR) largely depends on these resources' sustainable Global Supply Chain Distribution (GSCD). In turn, a sustainable GSCD necessitates the presence of sustainable environmental (E), social (S), governance (G), and economic (ECON) factors (ECON-ESG), as well as technological advancements and sustainable development goals (SDGs) globally. Therefore, this study investigates the impacts of all the factors on NR within 33 OECD countries. CS-ARDL model is employed for this aim. The empirical findings reveal the positive impacts of economic factors, environmental aspects, and SDGs on NR. Conversely, the model finds negative effects of technological advancement and governance on NR. The negative impacts (contrary to expectations) of technological advancements on NR can be due to (i) technological advancements can encourage the development of non-natural resources such as renewable energy, causing less demand for and thereby less supply of natural resources and rents. This potential reason can be referred to as Schumpeter's (1942) “creative destruction theory,” which postulates that new technologies can replace older ones. (ii) Technological advancements may require high initial costs; therefore, investing in natural resources and updating technological infrastructure may be costly, reducing rents from natural resources. Therefore, given the complex interactions above, policymakers should implement tailored policies compatible with ECON-ESG and SDGs for a sustainable GSCD. Apart from the individual effects of each component of ECON, E, S, and G on NR, the impact of a single composite and comprehensive form of sustainability, ECON-ESG, developed and proposed by Isik et al. (2024c), on NR is negative. This new and proposed form of sustainability can enable policymakers and firms to review their economic, environmental, social, and governance policies holistically and manage their NR policies accordingly.

Natural resource rents and financial inclusion nexus: Evidence from Africa

A significant gap in total natural resources wealth and financial inclusion studies on the African continent stems from their impact and variation. To address these deficiencies, this study investigates the effect of total natural resource rents on financial inclusion, employing data from 27 African economies from 2004 to 2019. This study uses the most recent panel estimators, causality test and variance decomposition analysis for accuracy and reliability. Findings reveal that total natural resources wealth and economic progress significantly reduces financial inclusion, while fossil and renewable energy promote financial inclusion. Moreover, financial globalization had an insignificant outcome on financial inclusion. The causality test revealed bi-directional causation between financial inclusion in renewable energy and financial inclusion in economic progress. Again uni-directional causation from financial inclusion to fossil energy and financial inclusion to natural resources wealth. At the same time, a neutral causal effect was found from financial inclusion to financial globalization. Regarding variations, financial inclusion had the highest effect on natural resource rents. Our findings grasp new insight into financial inclusion in Africa, and policymakers are advised to support natural resources rent by directing its impact into the economy's real sector.

DETERMINANTS OF EXPORT ENTREPRENEURSHIP DEVELOPMENT: A COMPREHENSIVE ANALYSIS OF THEIR HETEROGENEOUS IMPACT

The article aims to analyse current trends in the export entrepreneurship sphere. The main objective of the study is to identify a possible relationship between the attained level of export performance achieved in different countries and various institutional and other determinants. The article provides a concise theoretical overview and bibliometric analysis of publications, highlighting promising directions for the promotion of export entrepreneurship and identifying key factors influencing its effectiveness. To achieve the study՚s objective, data are used on the time to export a single cargo, the number of procedures to register a new business, the creditworthiness of countries, GDP per capita, the share of natural resource rents in GDP, the efficiency of government institutions, the share of urban population in the total population, and the average years of education. The specified parameters have been collected for the period from 2006 to 2020. To analyse the nature of the influence of the selected determinants, a sample of 135 countries with different levels of population income was compiled. Statistical data processing was carried out using the software tools EViews 13 and Stata/MP 14.2. Initially, a series of econometric tests were used to check the panel data for multicollinearity, variable stationarity, and their cointegration. Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) methods were then used to estimate the statistically significant long-term relationship between the variables. As a result, a pool of significant factors of institutional and other factors has been identified that determine the effectiveness of export entrepreneurship in the country. The results obtained allow for a more comprehensive justification of measures to support the development of export business activities.

Does economic policy uncertainty and stock market development affect natural resources: Evidence from United States of America

AbstractThis study investigates the impact of economic policy uncertainty (EPU) and stock market development (SMD) on natural resources in the United States during the period between 1985 and 2021 by keeping the GDP and innovation as control variables. For empirical analysis, the autoregressive distributed lag model (ARDL) and Kernel Regularized Least Squares (KRLS) regression techniques were used to investigate the long‐ and short‐run relationships. To check the robustness of results, this study uses a machine learning approach, i.e., Canonical Cointegrating Regression (CCR). The results of the ARDL bounds test approach suggest the presence of long‐run relationships among the study variables, and these results were confirmed through KRLS and CCR. The long‐run results indicate that economic policy uncertainty and SMD increase natural resource rent. Moreover, GDP and innovation also increase natural resource rent. However, a weak relationship exists between innovation and natural resource rent in the short run. Policymakers need to provide stable and encouraging economic policies to promote sustainable resource management, while stock markets need to facilitate long‐term planning and responsible investment in natural resource industries.

Green Energy Strategies and Their Effect on Natural Resource Sustainability in Pakistan

This study explores the impact of green energy strategies on natural resource sustainability in Pakistan, utilizing data from 1999 to 2022 and applying the ARDL estimation technique. The primary focus is on understanding how renewable energy consumption and production influence natural resource rents. Empirical results indicate a complex relationship: renewable energy consumption is negatively correlated with natural resource rents, suggesting that increased consumption of renewable energy may reduce the exploitation of natural resources. Conversely, renewable energy production shows a positive correlation with natural resource rents, implying that boosting renewable energy production can enhance the value derived from natural resources. These findings underscore the dual role of renewable energy in promoting sustainability. On the consumption side, a shift towards renewables can alleviate pressure on natural resources, fostering long-term ecological balance. On the production side, investing in renewable energy infrastructure appears to complement the efficient use of natural resources, potentially increasing economic rents. Policymakers should encourage renewable energy consumption through incentives and subsidies, reducing dependence on non-renewable resources and mitigating environmental degradation.

The Impact of Renewable Energy; Financial Development and Economic Growth on Carbon Emission: Empirical Evidence from Pakistan

This research investigates the impact of renewable energy; financial development, economic growth, nonrenewable energy and natural resource rents on carbon emissions in Pakistan. An annual data series ranging from 1990 to 2022 is used; while Pesaran’s et al. (2001) cointegration test is utilized and empirical results confirm that renewable energy, financial development, nonrenewable energy and economic growth have long run cointegrating relation with carbon emissions. The results further provide evidence that utilization of clean energy combats carbon emission while financial development, economic growth and unclean energy promote carbon emission. Natural resource rents also help in combating carbon emission but only in long run. These results are reliable as guided by diagnostics used in this research. This research suggests that both clean energy and natural resources must be promoted to combat carbon emissions while financial development; economic growth and nonrenewable energy may be escalated carefully because these are promoting environmental pollution in Pakistan.

How do natural resource rents and productive capacity affect carbon emissions? Evidence from developed and developing countries

This study re-examines the determinants of CO2 emissions, considering 36 developing and developed economies from 2000 to 2020. The study uses a new indicator of economic cycles, i.e., the productive capacity index. The panel models also control for the impacts of geopolitical risk, globalisation, renewable energy share, and total natural resource rents. After diagnosing the data for necessary panel diagnostics, the Westerlund cointegration test indicates a significant long-run relationship. In this context, two-step System Generalised Method of Moments (SGMM) estimations demonstrate the positive effects of geopolitical risk, productive capacity index, and natural resource rents on per capita CO2 emissions. In contrast, globalisation and the share of renewable energy reduce CO2 emissions. The Panel-Correlated Standard Errors (PCSE) and the Feasible Generalised Least Squares (FGLS) confirm the long-run reliability of these baseline findings. Policy implications concerning the issue of rising CO2 emissions are also discussed.

An empirical investigation of the impact of energy consumption, globalization and natural resources on ecological footprint and economic growth, evidence from China, Japan, South Korea and China Taiwan

Natural resources are regarded as important indicators that make great contributions to reducing environmental pollution and promoting growth in today's era of globalization. Thus, a more rigorous assessment of the complexity of determining growth and ecological footprint is critical. This study examines the dynamic linkages between globalization, natural resources, renewable and non-renewable energy use, ecological footprint and growth in Taiwan, Japan, China, and South Korea from 1975 to 2020. In terms of the certainty of cross-sectional dependence of panel variable data, this study uses second-generation panel unit root, cointegration, long-term elasticity, and two-way causality estimation tests to obtain reliable and valid results. The findings explore the fact that environmental degradation is substantially mitigated by the using of renewable energy sources, while other underlying factors, such as non-renewable energy sources, natural resource rent (NRR), economic growth, and globalization, exacerbate environmental pollution. In addition, the use of renewable and non-renewable energy, NRRs and globalization drive economic progress. Globalization and ecological footprint have a bilateral causal association. The research analysis supports the feedback hypothesis based on a bidirectional causal relationship between renewable energy use and ecological footprint. Based on the empirical findings of the current study, various policy endorsements are proposed to scare and control environmental damage without hampering growth in specific East Asian economies.

Understanding the complex dynamics of climate change in BRICS countries: Analyzing the COP26 and COP27 agendas

The urgency to address climate change becomes increasingly evident as we observe a rise in devastating natural disasters and significant changes in global temperatures. This comprehensive study critically assesses the adherence to climate targets set at COP26 and COP27, employing a dual approach encompassing theoretical and empirical aspects—basic and additional analysis. According to theoretical findings, China, Brazil, and South Africa are still experiencing an increase in climate change indicators despite their collective efforts. Notably, Brazil has shown limited progress in green financing initiatives. Moving to an empirical analysis covering 1995–2021, the study employs advanced econometric techniques, including panel ARDL, FMOLS, DOLS, CS-ARDL, and Grey forecasting models (GM (1,1) and DGM (1,1)). The past data on energy production using both renewable and non-renewable sources spanning from 2010 to 2021 to forecast energy production for the next 8 years, extending up to 2029. Results indicate that green financing, renewable energy consumption, natural resource rents, and government effectiveness significantly reduce GHG emissions. Conversely, economic growth, including its cubic form, exacerbates GHG emission trends. Moreover, the study validates the environmental N-shaped hypothesis in the examined countries, providing a complete understanding of climate change's intricate and multifaceted impacts. The grey forecasting model shows that Brazil, Russia, and South Africa are actively endeavoring to curb greenhouse gas emissions by transitioning toward renewable energy sources for energy production. This research contributes valuable insights for policymakers, emphasizing the importance of targeted interventions in green financing and sustainable practices to effectively address and mitigate climate change.

Role of resources rent, research and development, and information and communication technologies on CO2 emissions in BRICS economies

The continuous increase in pollution levels has become a severe threat to the globe, and practitioners are trying their best to deal with environmental challenges to attain for attaining the targets of sustainable development goals (SDGs). Under the environmental aspects, the world has introduced numerous solutions to become clean and green while the problem remains intact. Therefore, this study is an attempt that investigate the impact of natural resources rent, research & development expenditures (R&D), information and communication technologies, and renewable energy consumption on carbon emissions under the framework of the STIRPAT model for BRICS economies during 1998–2021 by using CS-ARDL method. The empirical outcome shows that economic growth (EG), urbanization, and natural resources increase environmental pollution. On the other hand, R&D expenditures, renewable energy and digitalization support the sustainability theme. Furthermore, this study uses the Augmented Mean Group, Common Correlated Effect Mean Group and Panel Quantile Regression to validate the prior outcomes. Finally, the inverted connection between natural resource rents and emissions is validated in BRICS economies. Based on the empirical outcomes, this study suggests policy implications for attaining the targets of SDG-13 (climates change), SDG-07 (affordable and clean energy), SDG-08 (decent economic growth), SDG-09 (innovations, research and development), SDG-11 (sustainable cities and societies), and SDG-12 (responsible consumption).

Quantifying the Impact of Natural Resources on Sustainable Growth in Developing Economies: Evidence from Panel Nonlinear ARDL Technique

The main purpose of current research is to analyze the impact of natural resource exploration on sustainable growth in developing economies. Annual panel data of 57 developing countries from 2000 to 2021 has been used for research analysis. First, this study uses a simple Panel Autoregressive Distributive Lag (ARDL) estimation technique to examine the long-run and short-run link among the variables. The results depict that in the long run natural resource exploration has a significant negative impact on sustainable growth. This finding supports the presence of the resource curse hypothesis. Besides this, the present study decomposes the policy variable (mining contribution index) into its two shocks i.e. positive shock and negative shock by applying a panel non-linear ARDL approach. The long-run outcomes depict that both the coefficients of partial positive and partial negative sums of natural resource rents are negative and significant. Furthermore, the research outcomes explain that financial openness and international trade have a substantial and positive impact on sustainable progress. The policy implications for current research are to avoid bad rent-seeking behaviors and to escape from non-productive activities to achieve sustainable development. Furthermore, there is a dire need to adopt and support environmentally friendly policies.

Quantifying the Impact of Natural Resources on Sustainable Growth in Developing Economies: Evidence from Panel Nonlinear ARDL Technique

The main purpose of current research is to analyze the impact of natural resource exploration on sustainable growth in developing economies. Annual panel data of 57 developing countries from 2000 to 2021 has been used for research analysis. First, this study uses a simple Panel Autoregressive Distributive Lag (ARDL) estimation technique to examine the long-run and short-run link among the variables. The results depict that in the long run natural resource exploration has a significant negative impact on sustainable growth. This finding supports the presence of the resource curse hypothesis. Besides this, the present study decomposes the policy variable (mining contribution index) into its two shocks i.e. positive shock and negative shock by applying a panel non-linear ARDL approach. The long-run outcomes depict that both the coefficients of partial positive and partial negative sums of natural resource rents are negative and significant. Furthermore, the research outcomes explain that financial openness and international trade have a substantial and positive impact on sustainable progress. The policy implications for current research are to avoid bad rent-seeking behaviors and to escape from non-productive activities to achieve sustainable development. Furthermore, there is a dire need to adopt and support environmentally friendly policies.

Natural resource rents and public spending on education in Africa: Does women's political empowerment matter?

The increase in the number of women in political office is one of the most significant social trends of recent decades. Although still underrepresented, women's participation in decision-making bodies is increasing. This paper analyzes the moderating effect of women's political empowerment on the relationship between natural resource rents and public spending on education in a sample of 47 African countries over the period 2003–2020. This study employs several recent methods to effectively address the endogeneity issue, including the Generalized Method of Moments in System (GMM-S) and the Two-stage Instrumental Variables (2SIV) approach. Overall, the results show that natural resource rents reduce public spending on education, but their interaction with the index of women's political empowerment in composite and disaggregated form increases public spending on education in Africa. These results are tested at four levels of robustness, including the inclusion of additional control variables, the exclusion of outliers, and the use of alternative dependent and independent variables. We suggest improving the representation of women in African political decision-making. This could include quotas for women in decision-making bodies, mentoring programs for women leaders, and financial incentives for political parties that promote women's participation. Steps must also be taken to address structural barriers that prevent women from fully participating in political life, such as discrimination and violence against women.

Nexus between total natural resource rents and public debt within symmetric and asymmetric framework: Fresh insight from resource-rich economy

Many economies abundant in natural resources often leverage the rents from these resources as collateral for borrowing during periods of economic boom, intending to repay debts during periods of windfall. However, this practice can cultivate irresponsible borrowing tendencies, potentially leading to debt trap scenarios when global resource prices decline. Thus, our study delves into the interaction between public debt (PD) and total natural resource rents (TNR), examining both aggregate and disaggregate forms, with a specific focus on India spanning from 1980-81 to 2021–22.Our aggregate analysis reveals that PD exhibits heightened responsiveness to negative shocks in TNR compared to positive shocks, indicating an asymmetric impact of TNR on PD within the Indian context. Additionally, disaggregate analysis uncovers that both positive and negative shocks in coal rents (CR), natural gas rents (NGR), and forest rents (FR) significantly and adversely affect PD. Furthermore, a positive shock in mineral rents (MR) demonstrates a negative and significant impact on PD, while a negative shock in MR yields a positive but insignificant impact on PD. Overall, barring oil rents (OR), other forms of resource rents such as CR, NGR, FR, and MR showcase asymmetric and negative effects on PD. These findings underscore the importance of prudent institutional behavior and sound economic policies in overseeing and managing debt sustainability in resource-rich economies.

Bangladesh towards green growth: a review of environmental sustainability indicators

Pursuing green growth is crucial for Bangladesh to transition from an unsustainable economic trajectory to a more sustainable and inclusive one. Bangladesh is picked for this study because of impending and severe economic and environmental threats. This study intends to review the present scenario of various environmental sustainability-related indicators in Bangladesh, focusing on renewable energy consumption, freshwater resources, water productivity, CO2 emissions, energy intensity, air pollution, and natural resource rents. The World Bank database has been utilized to obtain secondary time series data of Bangladesh spanning from 2000 to 2020. As a descriptive study, cross-sectional and observational research methods as well as descriptive statistics and figures are used to elucidate the secondary data. Data demonstrate that Bangladesh now generates 41.16% of its energy from renewables, despite considerable variability. Regardless of the variation in freshwater availability, averaging at 708.19 cubic meters per capita, efficient water productivity remains consistent, indicating a robust water management system. The country demonstrates a relatively low carbon footprint, emitting 0.35 metric tons of CO2 per capita, alongside varying energy intensity levels, highlighting the need for enhanced efficiency measures. While pervasive PM2.5 air pollution poses a significant health risk, Bangladesh's reliance on natural resource rents underscores the importance of sustainable resource management practices for long-term economic stability. The observations of this study might assist in the formulation of policies of water management systems, air pollution control initiatives, and conservation of ecology to promote Bangladesh's long-term sustainability objectives and formulate policies.

Why do some populist presidents erode liberal democratic institutions more than others in Latin America?

ABSTRACT This paper contributes to the current literature on the relationship between populist rule and liberal democracy by conducting quantitative research with a time-series cross-sectional dataset covering 18 Latin American countries from 1991 to 2017. The findings reveal an overall negative correlation between populist rule and the quality of liberal democratic institutions, highlighting their inherent incompatibility. Nevertheless, this paper argues that several factors influence the governing populists' ability to erode liberal democracy. Specifically, it is observed that the negative impact of populist rule on the quality of liberal democratic institutions is amplified in the presence of higher levels of natural resource rents and lower levels of industrial employment and financial development. Moreover, it is found that the impact of these moderating variables on the relationship between populist rule and liberal democracy is contingent upon the ideological orientation of governing populists.