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An application of extenics, spatial factors, and natural resource market in China: The role of artificial intelligence and geopolitical risk

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  • Li, Aihong

Abstract

Scientific breakthroughs in recent years have earned widespread recognition. The significance of extenics has become so vital that the discipline is continuously evolving. Additionally, with the deployment of extenics and other innovations, the countries are now more connected and spatially reliant, influencing the global economy. The current study aims to investigate the role of extenics (measured by artificial intelligence (AI)) and spatial factors (measured by geopolitical risk (GPR)) in affecting the natural resources market (NRM). The analysis is performed on the Chinese economy data range from 1985 to 2022. The empirical assessment is carried out by using the unit root tests (Augmented Dickey fuller (ADF) and Phillips-Perron (PP) test), the non-linearity test (BDS test), and the non-linear autoregressive distributed lag (NARDL) model. The NARDL results show an asymmetric relationship between AI, GPR, and NRM in both the short run (SR) and long run (LR). A positive (negative) shock to AI, according to the findings, lowers (raises) natural resource rent and hence improves the natural resource market. Similarly, a positive (negative) shock to the GPR increases (decreases) natural resource rent and allows for the exploitation of the natural resource market. The study suggests that in addition to concentrating on extenics applications, the Chinese government needs to strengthen and reform its strategies to regulate spatial impacts to optimize its natural resource market.

Suggested Citation

  • Li, Aihong, 2023. "An application of extenics, spatial factors, and natural resource market in China: The role of artificial intelligence and geopolitical risk," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420722007322
    DOI: 10.1016/j.resourpol.2022.103289
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