IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v89y2024ics030142072400045x.html
   My bibliography  Save this article

Financial development and natural resource nexus: Evaluating the importance of mineral in BRICS economies

Author

Listed:
  • Wu, Yingjia
  • Cao, Nannan
  • Muda, Iskandar
  • Rady, Ahmed
  • Abduvaxitovna, Shamansurova Zilola

Abstract

Even though empirical literature is overflowing in explaining the interconnection between natural possessions and financial sector expansion, this literature portrays the complete picture by thoroughly analyzing the profound connection between minerals and financial sector expansion. The present analysisalso considers the two major components of natural possessions such as forests and minerals separately. Furthermore, the study scrutinizes the effect of total natural possessions along with minerals and forests on financial sector improvement in the presence of other variables like economic development, inflation, trade openness, and savings for BRICS economies. The analysis covers the periods panning 1990 to 2020 by applying the panel (OLS) Ordinary Least Square &the Bootstrapping Quantile Regression technique. The outcomes reveal that overall natural assets are exposed as a curse in the developmental process of the financial sector in BRICS economies. Moreover, the movement towards the highest quantile reduces the intensity of this negative impact of total natural resources along with its components minerals, and forests on financial sector development. The impact of natural possessions on financial expansion is sensitive to disaggregated components of resources in minerals and forests. The analysis further supports the financial resource curse hypothesis in BRICS economies. Additionally, a potential role is being played by the other regressors including economic development, trade openness, inflation, and savings in the expansion of the financial sector in BRICS. The study suggests the channelization of resources mainly minerals to industrial and manufacturing sectors for promoting financial institutions and markets.

Suggested Citation

  • Wu, Yingjia & Cao, Nannan & Muda, Iskandar & Rady, Ahmed & Abduvaxitovna, Shamansurova Zilola, 2024. "Financial development and natural resource nexus: Evaluating the importance of mineral in BRICS economies," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s030142072400045x
    DOI: 10.1016/j.resourpol.2024.104678
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142072400045X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.104678?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s030142072400045x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.