IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v79y2022ics030142072200424x.html
   My bibliography  Save this article

Investigating an optimal resource dependency to prevent natural resource curse: Evidence from countries with the curse risk

Author

Listed:
  • Destek, Mehmet Akif
  • Aydın, Sercan
  • Destek, Gamze

Abstract

The aim of this research is to find the optimal level of resource dependence that will eliminate the possibility of natural resource curse in 28 countries. First, the validity of a potential inverted U-shaped relationship between natural resource dependence and economic growth is explored, followed by the computation of the optimum dependency level that maximizes economic growth. A second empirical model is also developed to compare the optimal levels of resource dependence for economic growth and sustainable development. In doing so, second generation panel data methods are used, which account for the cross-sectional dependence of the 1990–2017 period. Furthermore, the impact of factors such as human resources, trade openness, and institutional efficiency, which are thought to mitigate resource risk, are studied. Our findings show that current resource dependency level does not appear to be a barrier to economic growth in 17 of the 28 countries, but it does appear to be a curse for sustainable development in 9 of 17 countries as well as the other 11 countries. Furthermore, it is concluded that increased trade openness promotes economic growth while harming sustainable development.

Suggested Citation

  • Destek, Mehmet Akif & Aydın, Sercan & Destek, Gamze, 2022. "Investigating an optimal resource dependency to prevent natural resource curse: Evidence from countries with the curse risk," Resources Policy, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s030142072200424x
    DOI: 10.1016/j.resourpol.2022.102981
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142072200424X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2022.102981?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:79:y:2022:i:c:s030142072200424x. See general information about how to correct material in RePEc.

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

    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 hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.