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Role of Natural resources rent on economic growth: Fresh empirical insight from selected developing economies

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  • Yu, Yiling

Abstract

The connection between natural resource rents and economic development has recently been the subject of heated dispute. Therefore, in this study we have analysed the relationship among natural resources rent and economic growth in a sample of the selected developing economiesbetween 1990 and 2020. The empirical findings support the nonlinear cointegration of variables in the selected developing economies. The ‘resource curse’ phenomenon in these nations is supported by long-run asymmetric effect data showing that total natural resource rent negatively impacts economic development in Nepal, Sri Lanka, and Afghanistan. However, we discovered that natural resource rent had a favourable impact on economic growth in Pakistan and India, suggesting that natural resources benefit these nations' economies. Vietnam and Sri Lanka show a long-run asymmetric impact between the total natural resource rent and economic development, whereas Bhutan and the Maldives show a short-run asymmetric effect. These empirical findings have several practical policy implications.

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  • Yu, Yiling, 2023. "Role of Natural resources rent on economic growth: Fresh empirical insight from selected developing economies," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s030142072300034x
    DOI: 10.1016/j.resourpol.2023.103326
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