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Total natural resources, oil prices, and sustainable economic performance: Evidence from global data

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  • Sha, Zhiping

Abstract

Natural resources are curses or blessings to economic performance, yielded contradictory results over the past few decades. This research objectivizes analyzing the nexus between total natural resources, crude oil prices, and economic performance over the extended period of 1960–2020 at a global level. This research uses time series specifications, including the stationarity test that validates the variables’ stationarity. Since the data possesses the characteristics of non-normal distribution, therefore, the novel Quantile-on-Quantile regression is utilized. The empirical results asserted that both natural resources and crude oil prices significantly but asymmetrically affect economic performance. In the lower quantiles, the impact of both variables is positive, but in the medium and higher quantiles, the influence reports a negative impact on economic performance. This validates the natural resource curse paradox at a global level. Also, the Granger causality test reveals a two-way causality connection between economic performance and natural resources, oil prices, and economic performance, and natural resources and oil prices. Based on the empirical outcomes, this study also provides appropriate policy implications.

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  • Sha, Zhiping, 2022. "Total natural resources, oil prices, and sustainable economic performance: Evidence from global data," Resources Policy, Elsevier, vol. 79(C).
    • Handle: RePEc:eee:jrpoli:v:79:y:2022:i:c:s0301420722004895
    DOI: 10.1016/j.resourpol.2022.103046
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