IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v103y2025ics0301420725001047.html
   My bibliography  Save this article

Do disaggregated natural resources foster financial development? Evidence from linear and non-linear approaches

Author

Listed:
  • Kumar, Nitish
  • Shaurav, Kumar

Abstract

The paper examines the aggregated total natural resources and disaggregated resources such as oil, gas and coal impact on financial development in India from 1970 to 2020 including the role of energy consumption and physical capital. For the analysis, the study utilizes the linear as well as non-linear Autoregressive Distributed Lag model and the Breitung-Candelon spectral causality test. The findings from the linear model illustrate those natural resources, whether considered in aggregate or disaggregated forms, play a significant role in financial development in both the long and short term. The non-linear autoregressive model, on the other hand, reveals that shocks in total natural resources, at both aggregated and disaggregated levels, have a significant positive impact on financial development. The causality analysis highlights that total natural resources, coal, oil, gas resources and physical capital have a long-term relationship with financial development, while energy consumption has a medium and short-term relationship with financial development. Our finding highlights the importance of studying natural resources for policy formulation. The study provides pragmatic insights for India, focusing on efficient resource management and its utilization, investment in critical infrastructure, and sustainable energy consumption for financial growth.

Suggested Citation

  • Kumar, Nitish & Shaurav, Kumar, 2025. "Do disaggregated natural resources foster financial development? Evidence from linear and non-linear approaches," Resources Policy, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:jrpoli:v:103:y:2025:i:c:s0301420725001047
    DOI: 10.1016/j.resourpol.2025.105562
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420725001047
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2025.105562?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:103:y:2025:i:c:s0301420725001047. 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.