IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v85y2023ipbs0301420723004543.html
   My bibliography  Save this article

Nexus among corruption, political instability and natural resources on economic recovery in Vietnam

Author

Listed:
  • Liu, Fang
  • Chen, Houqun
  • Zhang, Shuwen

Abstract

Vietnam experienced political unrest from its founding in 1945–2000. However, since 2000, hints of system stability have been observed. Political unrest strengthens the foundations of national corruption over time. By considering the functions of per-capita income and natural resource development, this study assessed the effects of corruption, political instability (PIS), and natural resources on economic development. We used data from 1980 to 2020 to apply linear and non-linear Autoregressive Distributed Lag (ARDL). Both approaches supported the theory when applied to Vietnam. Our findings show that PIS has a detrimental impact on a nation's GDP, whereas natural resources increase GDP over the long and short term. In contrast, corruption temporarily boosts GDP, while lowering it over time. The asymmetric results over the long-term show that as corruption increases, GDP decreases, and as corruption decreases, GDP increases. The causality correlation supports these findings and suggests policies to combat lease and patronage practices and create a more transparent national environment. This will help control the obvious problems of PIS, corruption, and untapped natural resources and support the country's economic development and prosperity.

Suggested Citation

  • Liu, Fang & Chen, Houqun & Zhang, Shuwen, 2023. "Nexus among corruption, political instability and natural resources on economic recovery in Vietnam," Resources Policy, Elsevier, vol. 85(PB).
    • Handle: RePEc:eee:jrpoli:v:85:y:2023:i:pb:s0301420723004543
    DOI: 10.1016/j.resourpol.2023.103743
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723004543
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103743?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.

    References listed on IDEAS

    as
    1. Zhang, Dongyang & Mohsin, Muhammad & Rasheed, Abdul Khaliq & Chang, Youngho & Taghizadeh-Hesary, Farhad, 2021. "Public spending and green economic growth in BRI region: Mediating role of green finance," Energy Policy, Elsevier, vol. 153(C).
    2. Xiuzhen, Xie & Zheng, Wenxiu & Umair, Muhammad, 2022. "Testing the fluctuations of oil resource price volatility: A hurdle for economic recovery," Resources Policy, Elsevier, vol. 79(C).
    3. Wilson Suzigan & Renato Garcia & Paulo Henrique Assis Feitosa, 2020. "Institutions and industrial policy in Brazil after two decades: have we built the needed institutions?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(7), pages 799-813, October.
    4. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    5. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634, December.
    6. Li, ChangZheng & Umair, Muhammad, 2023. "Does green finance development goals affects renewable energy in China," Renewable Energy, Elsevier, vol. 203(C), pages 898-905.
    7. Fangyuan Guan & Chuanzhe Liu & Fangming Xie & Huiying Chen, 2019. "Evaluation of the Competitiveness of China’s Commercial Banks Based on the G-CAMELS Evaluation System," Sustainability, MDPI, vol. 11(6), pages 1-24, March.
    8. Banerjee, Rajabrata & Mishra, Vinod & Maruta, Admasu Asfaw, 2021. "Energy poverty, health and education outcomes: Evidence from the developing world," Energy Economics, Elsevier, vol. 101(C).
    9. John R. Graham & Daniel A. Rogers, 2002. "Do Firms Hedge in Response to Tax Incentives?," Journal of Finance, American Finance Association, vol. 57(2), pages 815-839, April.
    10. Lili Jiang & Hui Wang & Aihua Tong & Zhifei Hu & Hongjun Duan & Xiaolei Zhang & Yifeng Wang, 2020. "The Measurement of Green Finance Development Index and Its Poverty Reduction Effect: Dynamic Panel Analysis Based on Improved Entropy Method," Discrete Dynamics in Nature and Society, Hindawi, vol. 2020, pages 1-13, December.
    11. Lv, Chengchao & Bian, Baocheng & Lee, Chien-Chiang & He, Zhiwen, 2021. "Regional gap and the trend of green finance development in China," Energy Economics, Elsevier, vol. 102(C).
    12. Judy S. Yang, 2017. "The governance environment and innovative SMEs," Small Business Economics, Springer, vol. 48(3), pages 525-541, March.
    13. Mohsin, Muhammad & Ullah, Hafeez & Iqbal, Nadeem & Iqbal, Wasim & Taghizadeh-Hesary, Farhad, 2021. "How external debt led to economic growth in South Asia: A policy perspective analysis from quantile regression," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 423-437.
    14. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2017. "Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard?," Renewable Energy, Elsevier, vol. 111(C), pages 256-264.
    15. Rosa Maria Dangelico, 2016. "Green Product Innovation: Where we are and Where we are Going," Business Strategy and the Environment, Wiley Blackwell, vol. 25(8), pages 560-576, December.
    16. Gupta, Srishti & Gupta, Eshita & Sarangi, Gopal K., 2020. "Household Energy Poverty Index for India: An analysis of inter-state differences," Energy Policy, Elsevier, vol. 144(C).
    17. Jason Hickel & Giorgos Kallis, 2020. "Is Green Growth Possible?," New Political Economy, Taylor & Francis Journals, vol. 25(4), pages 469-486, June.
    18. Chang, Lei & Shi, Fanglan & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2023. "Information and communication technologies development and the resource curse," Resources Policy, Elsevier, vol. 80(C).
    19. Liu, Hongda & Huang, Feipeng & Huang, Jialiang, 2022. "Measuring the coordination decision of renewable energy as a natural resource contracts based on rights structure and corporate social responsibility from economic recovery," Resources Policy, Elsevier, vol. 78(C).
    20. Ning, Lutao & Guo, Rui, 2022. "Technological Diversification to Green Domains: Technological Relatedness, Invention Impact and Knowledge Integration Capabilities," Research Policy, Elsevier, vol. 51(1).
    21. Liu, Fang & Umair, Muhammad & Gao, Junjun, 2023. "Assessing oil price volatility co-movement with stock market volatility through quantile regression approach," Resources Policy, Elsevier, vol. 81(C).
    22. Wang, Jianda & Dong, Kangyin & Sha, Yezhou & Yan, Cheng, 2022. "Envisaging the carbon emissions efficiency of digitalization: The case of the internet economy for China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    23. Zhang, Dayong & Zhang, Zhiwei & Managi, Shunsuke, 2019. "A bibliometric analysis on green finance: Current status, development, and future directions," Finance Research Letters, Elsevier, vol. 29(C), pages 425-430.
    24. Faheem Gul Gilal & Kanwal Chandani & Rukhsana Gul Gilal & Naeem Gul Gilal & Waseem Gul Gilal & Nisar Ahmed Channa, 2020. "Towards a new model for green consumer behaviour: A self‐determination theory perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 711-722, July.
    25. Erahman, Qodri Febrilian & Purwanto, Widodo Wahyu & Sudibandriyo, Mahmud & Hidayatno, Akhmad, 2016. "An assessment of Indonesia's energy security index and comparison with seventy countries," Energy, Elsevier, vol. 111(C), pages 364-376.
    26. Okoye, Chiemeka Onyeka & Taylan, Onur & Baker, Derek K., 2016. "Solar energy potentials in strategically located cities in Nigeria: Review, resource assessment and PV system design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 550-566.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Lin & Dilanchiev, Azer & Haseeb, Mohammad, 2022. "The environmental regulation and policy assessment effect on the road to green recovery transformation," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 914-929.
    2. Yan, Juan & Haroon, Muhammad, 2023. "Financing efficiency in natural resource markets mobilizing private and public capital for a green recovery," Resources Policy, Elsevier, vol. 85(PB).
    3. Fang, Ying & Fan, Ying & Haroon, Muhammad & Dilanchiev, Azer, 2023. "Exploring the relationship between global economic policy and volatility of crude futures: A two-factor GARCH-MIDAS analysis," Resources Policy, Elsevier, vol. 85(PA).
    4. Lin, Chao & Cai, Peipei, 2023. "Analyzing the impacts of natural resource utilization and green economic growth in China: Evidence from a econometric analysis," Resources Policy, Elsevier, vol. 81(C).
    5. Tang, Qianning & Shahla, Rzayeva & Leyla, Aliyeva & Sevinj, Huseynova, 2023. "Moderating role of carbon emission and institutional stability on renewable energy across developing countries," Renewable Energy, Elsevier, vol. 209(C), pages 413-419.
    6. Liu, Xiaoyu & Zhao, Ti & Li, Ran, 2023. "Studying the green economic growth with clean energy and green finance: The role of financial policy," Renewable Energy, Elsevier, vol. 215(C).
    7. Hu, Bangyong & Guo, Man & Zhang, Shuwen, 2023. "The role of fiscal decentralization and natural resources markets in environmental sustainability in OECD," Resources Policy, Elsevier, vol. 85(PB).
    8. Cui, Kai & Li, Xinxue & Li, Gang, 2023. "What kind of fiscal policies and natural resources efficiency promotes green economic growth? Evidence from regression analysis," Resources Policy, Elsevier, vol. 85(PB).
    9. Xu, Zilin & Mohsin, Muhammad & Ullah, Kaleem & Ma, Xiaoyu, 2023. "Using econometric and machine learning models to forecast crude oil prices: Insights from economic history," Resources Policy, Elsevier, vol. 83(C).
    10. Zhao, Shixiu & He, Xiaoyi & Faxritdinovna, Kenjayeva Umriya, 2023. "Does industrial structure changes matter in renewable energy development? Mediating role of green finance development," Renewable Energy, Elsevier, vol. 214(C), pages 350-358.
    11. Dong, Chunlong & Wu, Hao & Zhou, Jianwen & Lin, Huifang & Chang, Lei, 2023. "Role of renewable energy investment and geopolitical risk in green finance development: Empirical evidence from BRICS countries," Renewable Energy, Elsevier, vol. 207(C), pages 234-241.
    12. Chen, Wei & Zou, Wandan & Zhong, Kaiyang & Aliyeva, Alina, 2023. "Machine learning assessment under the development of green technology innovation: A perspective of energy transition," Renewable Energy, Elsevier, vol. 214(C), pages 65-73.
    13. Zhang, Rongxin & Aljumah, Ahmad Ibrahim & Ghardallou, Wafa & Li, Zeyun & Li, Jinhua & Cifuentes-Faura, Javier, 2023. "How economic development promotes the sustainability targets? Role of natural resources utilization," Resources Policy, Elsevier, vol. 85(PA).
    14. Hasan, Mohammad Maruf & Du, Fang, 2023. "Nexus between green financial development, green technological innovation and environmental regulation in China," Renewable Energy, Elsevier, vol. 204(C), pages 218-228.
    15. Cao, Feifei, 2023. "Digital financial innovation and renewable electrification: A step toward zero carbon nexus," Renewable Energy, Elsevier, vol. 215(C).
    16. Qi, Haozhi & Huang, Xucheng & Sheeraz, Muhammad, 2023. "Green financing for renewable energy development: Driving the attainment of zero-emission targets," Renewable Energy, Elsevier, vol. 213(C), pages 30-37.
    17. Sun, Gebing & Li, Guozhi & Dilanchiev, Azer & Kazimova, Asli, 2023. "Promotion of green financing: Role of renewable energy and energy transition in China," Renewable Energy, Elsevier, vol. 210(C), pages 769-775.
    18. Wei Fang & Zhenyu Yang & Zhen Liu & Assem Abu Hatab, 2023. "Green recovery of cropland carrying capacity in developed regions: empirical evidence from Guangdong, China," Economic Change and Restructuring, Springer, vol. 56(4), pages 2405-2436, August.
    19. Fan, Weina & Anser, Muhammad Khalid & Nasir, Muhammad Hamid & Nazar, Raima, 2023. "Uncertainty in firm innovation scheme and impact of green fiscal policy; Economic recovery of Chinese firms in the post-Covid-19 era," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 1424-1439.
    20. Yuan, Shengyun & Li, Changhao & Wang, Mingyang & Wu, Hao & Chang, Lei, 2023. "A way toward green economic growth: Role of energy efficiency and fiscal incentive in China," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 599-609.

    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:85:y:2023:i:pb:s0301420723004543. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.