Sale Of Natural Resources Research Articles

China's sustainable development perspective of financial development from the lens of geopolitical risk and resources extraction

The progress of economic development is greatly improved by financial development, and one of the main sources that can be used to encourage the expansion of financial systems is the revenue obtained from the sale of natural resources. The current study analyzes China's nexus of natural resources and financial development from 1989 to 2021. The study also included geopolitical risk as an additional determinant of financial development. With different covariates of the dependent variable, we make available several reliable econometric methods for this study; for the unit root testing, the Augmented Dicky-Fuller test; for primary outputs, Auto Regressive Distributive Lags (ARDL) model is employed and for the robustness check analysis, Fully Modified Least Squares FMOLS, DOLS and CCR methods are provided. The outcomes exhibit that various rents of NRR have a negative and significant impact on financial expansion, exhibiting the resource curse hypothesis in China, while natural gas exhibits improve FD in China. Moreover, Geo-political risk has an insignificant but positive impact on financial development; therefore, GPR influence is inconclusive in both the short and long run. Robustness check results support the ARDL estimates, and the results are similar in all formats. The study provides policy implications regarding the nexus of FD and NRR.

Petersburskie wystąpienie Kassym-Żomart Tokajewa: uwarunkowania, treść i konsekwencje z punktu widzenia relacji w trójkącie Rosja–Kazachstan–Chiny

The aim of the article is to answer the question of how relations between Kazakhstan and the two key superpowers – Russia and China – involved in the policy of the Central Asian region have changed in the light of Russian aggression against Ukraine. The starting point for the discussion on the complex relations in the Russia-Kazakhstan-China triangle is the speech of Kassym-Jomart Tokayev at the International Economic Forum in St. Petersburg in June 2022. It triggered an avalanche of comments indicating that Kazakhstan, in the conditions of the Russian-Ukrainian war, fears of sanctions from the West and concern for stable socio-economic development driven by revenues from the sale of natural resources, is not ready to support Russia in its confrontation with the West. On the other hand, it intends to follow the Chinese path, seeing Beijing as an influential patron who will stop Moscow from aggressive actions against Kazakhstan. The theoretical basis of the article is the concept of omni-enmeshment. In the literature on the subject, it is assumed that its implementation provided Kazakhstan with stability, security and continuity of the existence of the political regime associated with the person of Nursultan Nazarbayev. The authors assume that this concept could have been realized as long as the powers involved in the region maintained a balance in mutual relations. The war with Ukraine and the confrontation with the West caused Russia to deliberately destroy the Kazakh model of international order in the region. It may take aggressive actions against Kazakhstan because it has not sufficiently taken care of the infrastructural security of its energy links with the West. For many years, Kazakhstan has avoided clientelist obligations towards one of the superpowers, but facing Russia's actions, it is clearly inclined to seek protection from China, which is ready to accept the burden of responsibility for the security of the region, in the interest of the security and success of the Belt and Road Initiative.

Effectiveness of the stabilization fiscal rule for resource-rich countries

This paper explores the efficacy of the fiscal rule enacted by regulators in exporting countries, which implies the smoothing of tax revenue from the sale of natural resources. Under “efficacy” we understand its stabilization effect that is lowering volatility (countercyclicality) of key macroeconomic variables following its imposition. The approach to the operation of the fiscal rule is based on two types of assumptions: those about the type of the fiscal rule and about the structure of the economy. The first ones take into account imperfections in the workings of the revenue smoothing mechanism; the second relate to the duration of price and wage contracts, the cost of investing in foreign assets, government demand structures, household habits and the share of Ricardian households. We use a DSGE model of a small open economy with a strong reliance on commodity exports. The paper analyzes the assumptions under which various modifications of the fiscal rule lose their efficiency in relation to inflation, output and the exchange rate. The study emphasizes the importance of accurate identifying of fiscal rule workings, as well as the need for correct measurement of economic indicators in order to determine the nature of the fiscal rule effect related to revenue smoothing. The conclusion is made regarding the effectiveness of the future fiscal rule in Russia in the absence of an external wealth fund and a closed financial account.

ТРАНСФОРМАЦІЇ СУЧАСНОЇ ЕКОНОМІЧНОЇ СВІТОСИСТЕМИ В УМОВАХ ГЛОБАЛІЗАЦІЇ

The article examines the peculiarities of the formation and further development of the economic component of the modern world system in the conditions of global economic and political transformations. The main scientific approaches to defining the essence and models of globalization are outlined. Authors singled out two main models of globalization – neoliberal and humanistic-noospheric. Neoliberal is recognized as the current one, due to the fact that it is interpreted as technocratic-unipolar under the pronounced hegemony of the USA and Western culture. The division of the world system into the center and the periphery is substantiated. The leading level is countries with a high level of income, which concentrate resource flows, appropriating all the benefits of globalization, and the bottom consists of less developed countries of the periphery, which are resource donors for the group of leaders, existing mainly due to the use and sale of natural resources and consumers of innovations. This group is the largest, it shows slow modernization, some of its regions are overpopulated, and in many places there are zones of political instability and conflicts. The dependence of the country's role and place in the structure of the modern world system on its level of economic development and GDP indicators is described. It was also found that in the process of development, central regions change their specialization, transferring innovations to other regions, which, in turn, seem to "pull" behind the center to a new high-quality level of economic development. The authors also considered the state and prospects for the development of the economic core in the territory of modern China. It has been found that it is inappropriate to talk about the hegemony of this country in the modern world system, since the country's economy does not demonstrate the necessary stability and transition to the postindustrial stage of development with the predominance of the service sector over industrial production. Instead, the current state of the world system demonstrates the formation of a powerful core of the world economy in North America, which is based on the economy of the United States of America.

Formation and improvement f organizational and economic bases of forestry production in state forestry in Ukraine and Podillia region

Some issues on the historical formation of Podillia region of modern Ukraine and the formation of forestry in it are covered. It practically begins and acquires social meaning in the second half of the twentieth century. This means the use of land provided to economic entities (forestries) for growing wood as their main forestry product. The same applies to the cultivation and sale of natural resources related to forestry, secondary forest materials, services of various contents, etc. It is highlighted that the Forest Code of Ukraine has cunningly replaced the object of labor and use of the natural resource «Earth» with forest resources. The issues are somewhat complicated by the use of tax indicators and forms of their analysis and publication without their adaptation to the UN-ECE / FAO Standard Statistical Classification of Land Use and without the necessary grouping by forest and environmental components. The Government of Ukraine approves the Resolution «On Approval of the Procedure for Division of Forests into Categories and Allocation of Specially Protected Forest Areas», which does not bring national forest legislation closer to it. In this way, the further growth of non-timber forest lands at least 3 times or more in comparison with the leading European countries was legitimized. The necessity of improving the content of the current Forest Code of Ukraine, as well as finalization and updating of the Instruction on forest management in the state forestry of Ukraine is proved. The availability of statistical and reporting information on the state of forests of the State Forest Agency of Ukraine for state-owned enterprises of the past allows to update the relevant reporting indicators while adapting them to the norms of European forestry. The proposed measures are aimed at improving forest legislation, as well as the formation of measures in the practical activities of forest management and the work of managers using its materials in forestry.

Exploring the nexus among natural resource rents, human capital and industrial development in the SSA region

This paper investigates whether the natural resource rent has a role to play in the human capital-industrial development nexus. The study specifically examines how human capital development in sub-Saharan Africa can spur industrial development and probing how natural resource rent serves as a propeller in this process for a sample of 17 sub-Saharan African countries over the period of 1995–2015. We deploy the use of fixed effect model to examine this nexus. The findings from our estimated model reveal that the different measures of human capital investment does not propel industrial development as health expenditure has a direct drag effect. This gives insight into the challenges facing the industrial sector in the region. Similarly, the correlation further lend support to these findings in terms of direction/association. On natural resource rent as financing option, the coefficients are largely negative but their magnitudes are significantly small. More so, the results also show that the indirect impact of natural resource rents through human capital measures was negative when interacted with education measure while positive for health interaction term. Thus, this study clearly shows the challenges bedeviling SSA region industrial development and suggests that in an attempt to boost industrial sector development, it is important for the governments in SSA region to explore efficiently, the fund from the sale of natural resources by allocating sufficient fund and design monitoring framework for human capital development vis-a-vis industrial development.

A cross-national study of the association between natural resource rents and homicide rates, 2000-12.

Countries that rely on natural resource rents (that is, the revenue generated from the sale of natural resources) may suffer from a variety of social problems. This exploratory study reviews the natural resource extraction literature to derive a ‘natural resource rents–homicide’ hypothesis. Data for 173 countries for the years 2000 to 2012 are examined to determine if there is a correlation between natural resource rents and homicide rates. Multilevel growth models suggest that natural resource rents are positively correlated with homicide rates within countries (level 1) but not between them (level 2). Importantly, the correlation between natural resource rents and homicide is strongest when natural resource rents are lagged. We conclude by suggesting that increasing natural resource rents may be counterproductive over the long run and sow the seeds for a future increase in homicide.

Transparency of government revenues from the sale of natural resources: pursuing the international course through EITI

The Extractive Industries Transparency Initiative (EITI) Standard adopted in May 2013 broke new ground by including revenues from the sale of natural resources among the revenue streams to be reported by governments. This addition is of great significance considering the economic importance of sales revenues, in particular in the case of crude oil, and the rather opaque environment in which the sale and purchase of natural resources often takes place. Transparency of sales revenues, as for fiscal revenues from upstream activities, helps empower citizens of resource-rich countries to hold their governments accountable for the wealth generated by those resources. The author argues in favour of a global adoption of the EITI regime and its further strengthening in the area of disclosure of payments by companies purchasing natural resources, including commodity traders. The experience of Iraq with EITI reporting shows how information from the government as well as companies regarding the sale of the state’s crude oil can be made available to the public. National, top-down initiatives, such as the disclosure rules in section 1504 of the Dodd-Frank Act (not implemented at the time of writing), only compel companies under national jurisdiction to disclose payments to foreign governments. Unilateral initiatives create a patchwork of inconsistent standards, inviting regulatory arbitrage. As an example, while the disclosure requirements developed in the USA also apply to payments by listed companies purchasing natural resources for exporting (oil companies, refineries, commodity traders, etc); the scope of the legislation introduced in the European Union is limited to payments for upstream activities by companies in the extractive (and forestry) industries. The resulting unbalanced playing field, in addition to compliance costs, is an issue of concern to businesses, in particular with regard to the disclosure of commercially sensitive information. These considerations inform the ongoing debate regarding the possible adoption of transparency requirements in Switzerland, a major trading hub for physical energy commodities.

Resource Rents and Economic Growth. Economic and Institutional Development in Countries with a High Share of Income from the Sale of Natural Resources. Analysis and Recommendations Based on International Experience.

“Resource curse”, “Dutch disease”, “gold rush”, “blood diamonds” – those are just some of the epithets used to characterise the role of natural resources in economic development. They certainly do not set a positive tone for a constructive discussion. The purpose of this report is to change that attitude and lay a foundation for a policy roadmap based on success stories of economic development among resource abundant countries. This report presents the argument that resource economies with better economic and political institutions are more capable of managing their resource revenues, and can achieve superior results in economic growth and social development. To support that argument, we have used empirical evidence and analysed the relevant research that has been conducted on the subject to date. We compare performances of resource economies in different parts of the world depending on their institutional rankings, property structure of their extractive industries and other key parameters.

On the creation of indigenous subjects in the Russian Federation

For many of Russia's poorest people, and especially for the officially recognized ‘indigenous small-numbered peoples’, neoliberal reforms following the collapse of the Soviet Union represented a major retrenchment in ‘social citizenship’ as defined by T.H. Marshall. However, some reforms also promised increased civil, political and cultural citizenship rights, which Russia's indigenous peoples have sought to realize through new legislation and appeals to international agreements regarding the rights of indigenous peoples. But with Russia's current economic and political course geared towards maximizing revenues from the extraction and sale of natural resources, Russia's indigenous peoples have been frustrated in their efforts to realize these citizenship rights, particularly in their attempts to assert rights to land and resources through legal means. This paper draws on case studies from southern Siberia to discuss first how Russia's identity politics and an international focus on indigenous peoples have combined to create indigenous subjects in the Russian Federation, and second how the anticipated transition from indigenous subjects to indigenous citizens has for the most part failed to materialize.

Knowledge and Finance in Restructuring: a Look at the Russian Context

This paper discusses the short run advantages of the Russian economy, connected to natural resources on the one hand, and to the scientific and technological culture of the workforce on the other hand. It analyses the utilization of the accumulated financial resources, provided by the sale of natural resources, for investment in industrial and high-tech projects in the sphere of science-intensive production and financial control. A schema of the flexible reconstruction of the existing system of production with the aid of an appropriate credit policy by the Central Bank is proposed.JEL: O16, E58, P2

The Taxation of Windfall Gains on Stocks of Natural Resources

As the first main point of this paper we argue that the supply of natural resources is price elastic so that, unlike in the case of land, the taxation of profits due to unexpected price increases leads to inefficiencies. We argue that the precedent setting taxation of windfall profits in Canada causes the truncation of the upper part of the probability distribution of returns expected by investors. As a result they can be expected to lower investment in natural resource industries and keep their funds in other, socially less profitable employment. As a second main point we show that taxation of companies through the forced sale of natural resources in Canada at prices below world opportunity costs causes further welfare costs through the induced overconsumption of these products in Canada.