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Natural resource endowment, institutional quality and China's regional economic growth

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  • Qiang, Qiu
  • Jian, Chen

Abstract

The provincial panel data from 2005 to 2018 in this paper classifies institutional variables into the degree of market resource allocation, market openness, and property rights diversification. It empirically analyzes the relationship between economic growth, natural resources, and institutions quality. The research results show that the “resource curse” proposition is valid at the provincial level in China. The low-quality market resource allocation system and property rights system curbed the potential advantages of natural resources to promote economic development and caused the “resource curse” effect. Similarly, the increase in market openness can ease the “resource curse” effect. Moreover, in the context of the spatial agglomeration of natural resources, there is a negative spatial correlation between economic growth, and the “resource curse” effect is more severe in areas where resources are more abundant. In addition, it is found that natural resource endowments will affect the quality of the system. Under the effect of the causal cycle mechanism, the lower the quality of the system, the more severe “resource curse” effect.

Suggested Citation

  • Qiang, Qiu & Jian, Chen, 2020. "Natural resource endowment, institutional quality and China's regional economic growth," Resources Policy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s0301420720300611
    DOI: 10.1016/j.resourpol.2020.101644
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