IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v89y2024ics030142072301259x.html

The impact of natural resource, information and communication technology adoption, and economic expansion on financial development in post COVID era

Author

Listed:
  • He, Qiao
  • Xie, Henglang
  • Zhu, Yichang
  • Huang, Lingyu

Abstract

This study explores the interplay between natural resources, economic growth, and financial development in China, extending the inquiry to the moderating role of Information and Communication Technology (ICT). Utilizing the advanced Fourier Autoregressive Distributed Lag (ARDL) framework on data spanning from 1991 to 2020, our analysis delineates the dual influence of natural resources on financial development. Results indicate that natural resources alone have a deleterious effect on financial development both in the short and long run. However, when combined with ICT, the long-run effects are positive, suggesting that ICT has a transformative potential on the natural resources-financial development nexus. Conversely, in the short run, this interaction proves detrimental. These findings underscore the imperative for a holistic strategy that harmonizes economic growth, ICT advancement, and natural resource utilization to foster sustainable financial development.

Suggested Citation

  • He, Qiao & Xie, Henglang & Zhu, Yichang & Huang, Lingyu, 2024. "The impact of natural resource, information and communication technology adoption, and economic expansion on financial development in post COVID era," Resources Policy, Elsevier, vol. 89(C).
    • Handle: RePEc:eee:jrpoli:v:89:y:2024:i:c:s030142072301259x
    DOI: 10.1016/j.resourpol.2023.104548
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142072301259X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.104548?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa," World Development, Elsevier, vol. 86(C), pages 133-147.
    2. Slesman, Ly & Baharumshah, Ahmad Zubaidi & Azman-Saini, W.N.W., 2019. "Political institutions and finance-growth nexus in emerging markets and developing countries: A tale of one threshold," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 80-100.
    3. Ahmed S. Alimi & Idris A. Adediran, 2020. "ICT diffusion and the finance–growth nexus: a panel analysis on ECOWAS countries," Future Business Journal, Springer, vol. 6(1), pages 1-10, December.
    4. Iwasaki, Ichiro, 2022. "The finance-growth nexus in Latin America and the Caribbean: A meta-analytic perspective," World Development, Elsevier, vol. 149(C).
    5. Witness Nyasha Bandura, 2022. "Inflation and Finance-Growth Nexus in Sub-Saharan Africa," Journal of African Business, Taylor & Francis Journals, vol. 23(2), pages 422-434, April.
    6. Nawaz, Kishwar & Lahiani, Amine & Roubaud, David, 2019. "Natural resources as blessings and finance-growth nexus: A bootstrap ARDL approach in an emerging economy," Resources Policy, Elsevier, vol. 60(C), pages 277-287.
    7. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    8. Naseer, Ahsan & Su, Chi-Wei & Mirza, Nawazish & Li, Jing-Ping, 2020. "Double jeopardy of resources and investment curse in South Asia: Is technology the only way out?," Resources Policy, Elsevier, vol. 68(C).
    9. Nath, Hiranya K. & Liu, Lirong, 2017. "Information and communications technology (ICT) and services trade," Information Economics and Policy, Elsevier, vol. 41(C), pages 81-87.
    10. Auty, R. & Warhurst, A., 1993. "Sustainable development in mineral exporting economies," Resources Policy, Elsevier, vol. 19(1), pages 14-29, March.
    11. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    12. Nasreen, Samia & Mahalik, Mantu Kumar & Shahbaz, Muhammad & Abbas, Qaisar, 2020. "How do financial globalization, institutions and economic growth impact financial sector development in European countries?," Research in International Business and Finance, Elsevier, vol. 54(C).
    13. Li, Hui & Usman, Nazar & Coulibay, Megnoro Hamed & Phiri, Ruth & Tang, Xiaoying, 2022. "Does the resources curse hypothesis exist in China? What is the dynamic role of fiscal decentralization, economic policy uncertainty, and technology innovation for sustainable financial development?," Resources Policy, Elsevier, vol. 79(C).
    14. Gallant, A. Ronald & Souza, Geraldo, 1991. "On the asymptotic normality of Fourier flexible form estimates," Journal of Econometrics, Elsevier, vol. 50(3), pages 329-353, December.
    15. Shahriyar Mukhtarov & R dvan Karacan & Fuzuli Aliyev & Vuqar Ismayilov, 2022. "The Effect of Financial Development on Energy Consumption: Evidence from Russia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 243-249.
    16. Mohammed Ayoub Ledhem & Mohammed Mekidiche, 2020. "Economic growth and financial performance of Islamic banks: a CAMELS approach," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 28, pages 47-62.
    17. Dwumfour, Richard Adjei & Ntow-Gyamfi, Matthew, 2018. "Natural resources, financial development and institutional quality in Africa: Is there a resource curse?," Resources Policy, Elsevier, vol. 59(C), pages 411-426.
    18. Sabri Burak Arzova & Bertac Sakir Sahin, 2023. "Does financial development support renewable energy or carbon emissions? A panel data analysis on emerging countries," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 15(1), pages 93-117.
    19. Shahbaz, Muhammad & Naeem, Muhammad & Ahad, Muhammad & Tahir, Iqbal, 2018. "Is natural resource abundance a stimulus for financial development in the USA?," Resources Policy, Elsevier, vol. 55(C), pages 223-232.
    20. Edmunds Čižo & Olga Lavrinenko & Svetlana Ignatjeva, 2020. "Analysis of the relationship between financial development and economic growth in the EU countries," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(3), pages 645-660, September.
    21. Mohammed Ayoub Ledhem & Mohammed Mekidiche, 2020. "Economic growth and financial performance of Islamic banks: a CAMELS approach," Islamic Economic Studies, Emerald Group Publishing Limited, vol. 28(1), pages 47-62, July.
    22. Deng, Qiu Shi & Alvarado, Rafael & Cuesta, Lizeth & Tillaguango, Brayan & Murshed, Muntasir & Rehman, Abdul & Işık, Cem & López-Sánchez, Michelle, 2022. "Asymmetric impacts of foreign direct investment inflows, financial development, and social globalization on environmental pollution," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 236-251.
    23. Ralf Becker & Walter Enders & Junsoo Lee, 2006. "A Stationarity Test in the Presence of an Unknown Number of Smooth Breaks," Journal of Time Series Analysis, Wiley Blackwell, vol. 27(3), pages 381-409, May.
    24. Mehmet Akif Destek & Avik Sinha & Samuel Asumadu Sarkodie, 2020. "The relationship between financial development and income inequality in Turkey," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-14, December.
    25. Simplice A. Asongu & Jacinta C. Nwachukwu, 2019. "ICT, Financial Sector Development and Financial Access," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 465-490, June.
    26. Wang, Zhen & Huang, Yaoxuan & Ankrah, Victoria & Dai, Jiapeng, 2023. "Greening the knowledge-based economies: Harnessing natural resources and innovation in information and communication technologies for green growth," Resources Policy, Elsevier, vol. 86(PA).
    27. Muhammad Shahbaz & Muhammad A. Nasir & Amine Lahiani, 2022. "Role of financial development in economic growth in the light of asymmetric effects and financial efficiency," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 361-383, January.
    28. Jakob B. Madsen & James B. Ang, 2016. "Finance-Led Growth in the OECD since the Nineteenth Century: How Does Financial Development Transmit to Growth?," The Review of Economics and Statistics, MIT Press, vol. 98(3), pages 552-572, July.
    29. Gong, Qinyi & Ying, Limeng & Dai, Jiapeng, 2023. "Green finance and energy natural resources nexus with economic performance: A novel evidence from China," Resources Policy, Elsevier, vol. 84(C).
    30. MESAGAN Ekundayo & OLUNKWA Ndubuisi & YUSUF Ismaila, 2018. "Financial Development And Manufacturing Performance: The Nigerian Case," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 97-111, December.
    31. 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.
    32. repec:hal:journl:hal-03532512 is not listed on IDEAS
    33. Swamy, Vighneswara & Dharani, Munusamy, 2019. "The dynamics of finance-growth nexus in advanced economies," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 122-146.
    34. Chor Foon Tang & Mannir Salisu, 2023. "A note on national leadership and technology in moderating finance-growth nexus," Economics and Business Letters, Oviedo University Press, vol. 12(1), pages 68-74.
    35. Mukhtarov, Shahriyar & Yüksel, Serhat & Dinçer, Hasan, 2022. "The impact of financial development on renewable energy consumption: Evidence from Turkey," Renewable Energy, Elsevier, vol. 187(C), pages 169-176.
    36. Nokulunga Mbona, 2022. "Impacts of Overall Financial Development, Access and Depth on Income Inequality," Economies, MDPI, vol. 10(5), pages 1-23, May.
    37. Muhammad Atif Khan & Muhammad Asif Khan & Kishwar Ali & József Popp & Judit Oláh, 2020. "Natural Resource Rent and Finance: The Moderation Role of Institutions," Sustainability, MDPI, vol. 12(9), pages 1-23, May.
    38. Zaidi, Syed Anees Haider & Wei, Zixiang & Gedikli, Ayfer & Zafar, Muhammad Wasif & Hou, Fujun & Iftikhar, Yaser, 2019. "The impact of globalization, natural resources abundance, and human capital on financial development: Evidence from thirty-one OECD countries," Resources Policy, Elsevier, vol. 64(C).
    39. Walter Enders & Junsoo Lee, 2012. "A Unit Root Test Using a Fourier Series to Approximate Smooth Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(4), pages 574-599, August.
    40. Çetin, Murat & Sarıgül, Sevgi Sümerli & Işık, Cem & Avcı, Pınar & Ahmad, Munir & Alvarado, Rafael, 2023. "The impact of natural resources, economic growth, savings, and current account balance on financial sector development: Theory and empirical evidence," Resources Policy, Elsevier, vol. 81(C).
    41. Haldar, Anasuya & Sethi, Narayan, 2022. "Environmental effects of Information and Communication Technology - Exploring the roles of renewable energy, innovation, trade and financial development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    42. Qian, Zongxin & Tu, Yonghong & Zhou, Zinan, 2022. "The impact of financial development on the income and consumption levels of China’s rural residents," Journal of Asian Economics, Elsevier, vol. 83(C).
    43. Ludlow, Jorge & Enders, Walter, 2000. "Estimating non-linear ARMA models using Fourier coefficients," International Journal of Forecasting, Elsevier, vol. 16(3), pages 333-347.
    44. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    45. Musakwa, Mercy T & Odhiambo, Nicholas M, 2022. "Tourism and financial development in South Africa: A trivariate approach," Working Papers 29826, University of South Africa, Department of Economics.
    46. Henri Atanga Ondoa & Arthur M. Seabrook, 2022. "Governance and financial development: Evidence from a global sample of 120 countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3405-3420, July.
    47. Ding, Yuanyi, 2023. "Does natural resources cause sustainable financial development or resources curse? Evidence from group of seven economies," Resources Policy, Elsevier, vol. 81(C).
    48. Asafu-Adjaye, John & Byrne, Dominic & Alvarez, Maximiliano, 2016. "Economic growth, fossil fuel and non-fossil consumption: A Pooled Mean Group analysis using proxies for capital," Energy Economics, Elsevier, vol. 60(C), pages 345-356.
    49. Ahmad, Mahmood & Dai, Jiapeng & Mehmood, Usman & Abou Houran, Mohamad, 2023. "Renewable energy transition, resource richness, economic growth, and environmental quality: Assessing the role of financial globalization," Renewable Energy, Elsevier, vol. 216(C).
    50. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Mahendhiran Nair, 2016. "Innovation, financial development and economic growth in Eurozone countries," Applied Economics Letters, Taylor & Francis Journals, vol. 23(16), pages 1141-1144, November.
    51. Bhattacharyya, Sambit & Hodler, Roland, 2014. "Do Natural Resource Revenues Hinder Financial Development? The Role of Political Institutions," World Development, Elsevier, vol. 57(C), pages 101-113.
    52. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Lingyu & Zhang, Yuxuan & Xian, Rui & Chen, Xinxian, 2026. "Data asset disclosure and corporate innovation: Evidence from China," International Review of Financial Analysis, Elsevier, vol. 109(C).
    2. Md Qamruzzaman & Sylvia Kor, 2024. "Navigating the path to environmental sustainability: Insights from CIVETS on the intersection of ICT diffusion, natural resources, and green technological innovation," PLOS ONE, Public Library of Science, vol. 19(12), pages 1-40, December.
    3. Yang, Xue & Zhang, Peng & Zhao, Zuoxiang & Koondhar, Mansoor Ahmed, 2024. "How disaggregated natural resources rents affect financial development: From the perspective of sustainable development," Resources Policy, Elsevier, vol. 92(C).
    4. Faisal Faisal & Suresh Ramakrishnan & Sami Ur Rahman & Adnan Ali & Aliya Zhakanova Isiksal, 2025. "Financial development and natural resources: Does information technology moderate for financial resource blessing?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(3), pages 537-550, September.
    5. Ali Abdulkadir Ali Gutale & Yasmin Bani & Abdul Rahim Abdul Samad & Syamsul Herman Bin Mohammad Afandi, 2026. "Investigating the nexus between natural resources, economic freedom, and financial development in Sub-Saharan Africa: an evidence from a dynamic panel threshold approach," Economic Change and Restructuring, Springer, vol. 59(1), pages 1-27, February.

    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. Yang, Xue & Zhang, Peng & Zhao, Zuoxiang & Koondhar, Mansoor Ahmed, 2024. "How disaggregated natural resources rents affect financial development: From the perspective of sustainable development," Resources Policy, Elsevier, vol. 92(C).
    2. Ali, Adnan & Ramakrishnan, Suresh & Faisal,, 2022. "Financial development and natural resources. Is there a stock market resource curse?," Resources Policy, Elsevier, vol. 75(C).
    3. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    4. Khan, Zeeshan & Hussain, Muzzammil & Shahbaz, Muhammad & Yang, Siqun & Jiao, Zhilun, 2020. "Natural resource abundance, technological innovation, and human capital nexus with financial development: A case study of China," Resources Policy, Elsevier, vol. 65(C).
    5. Ali, Adnan & Ramakrishnan, Suresh & Faisal, Faisal & Bazhair, Ayman Hassan & Sulimany, Hamid Ghazi H & Rahman, Sami Ur, 2024. "Does escaping the natural resource curse complement evading the financial resource curse too? Empirical evidence from Indonesia," International Review of Economics & Finance, Elsevier, vol. 91(C), pages 539-555.
    6. Seda Yıldırım & Durmuş Çağrı Yıldırım & Seda H. Bostancı & Elif Nur Tarı, 2022. "Winner or loser? The asymmetric role of natural resource rents on financial development among resource‐rich countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1921-1933, December.
    7. Li, Kaixian & Wang, Dongyu & Xu, Tong & Zhang, Yuqi, 2024. "Financial development and resource-curse hypothesis: Moderating role of internal and external conflict in the MENA region," Resources Policy, Elsevier, vol. 90(C).
    8. Hasanov, Fakhri J. & Aliyev, Ruslan & Taskin, Dilvin & Suleymanov, Elchin, 2023. "Oil rents and non-oil economic growth in CIS oil exporters. The role of financial development," Resources Policy, Elsevier, vol. 82(C).
    9. Muhammad Atif Khan & Muhammad Asif Khan & Kishwar Ali & József Popp & Judit Oláh, 2020. "Natural Resource Rent and Finance: The Moderation Role of Institutions," Sustainability, MDPI, vol. 12(9), pages 1-23, May.
    10. Wang, Zhe & Teng, Yin-Pei & Wu, Shuzhao & Liu, Yuxiang & Liu, Xianchang, 2023. "Geopolitical risk, financial system and natural resources extraction: Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    11. Wang, Lu & Chang, Hsu-Ling & Sari, Arif & Sowah, James Karmoh & Cai, Xu-Yu, 2020. "Resources or development first: An interesting question for a developing country," Resources Policy, Elsevier, vol. 68(C).
    12. Zhang, Zhinan & Xu, Xiangyun, 2023. "Sustainable financial risk, resources abundance and technological innovation: Evidence from resources abundance economies," Resources Policy, Elsevier, vol. 83(C).
    13. Sun, Yizhong & Jin, Keyan & Wang, Deyong & Wu, Qingyang & Li, Zhezhou, 2023. "Revisiting the natural resources-financial development nexus in China: The importance of economic policy uncertainty," Resources Policy, Elsevier, vol. 86(PB).
    14. Çetin, Murat & Sarıgül, Sevgi Sümerli & Işık, Cem & Avcı, Pınar & Ahmad, Munir & Alvarado, Rafael, 2023. "The impact of natural resources, economic growth, savings, and current account balance on financial sector development: Theory and empirical evidence," Resources Policy, Elsevier, vol. 81(C).
    15. Faryal, & Faisal, Faisal & Amin, Muhammad Yusuf & Haq, Zahoor Ul & Rahman, Sami Ur & Ali, Adnan, 2023. "Natural resources revenues, shadow economy and financial institutions depth: The way forward," Resources Policy, Elsevier, vol. 85(PB).
    16. Khan, Muhammad Atif & Gu, Lulu & Khan, Muhammad Asif & Oláh, Judit, 2020. "Natural resources and financial development: The role of institutional quality," Journal of Multinational Financial Management, Elsevier, vol. 56(C).
    17. Roudari, Soheil & Ghasemi, Hamidreza & Ghoreshi, Davood, 2021. "The role of institutional quality in the impact of oil rents on financial development in Brazil and Norway," MPRA Paper 126832, University Library of Munich, Germany, revised 23 Dec 2021.
    18. Hussain, Muzzammil & Ye, ZhiWei & Usman, Muhammad & Mir, Ghulam Mustafa & Usman, Ahmad & Abbas Rizvi, Syed Kumail, 2020. "Re-investigation of the resource curse hypothesis: The role of political institutions and energy prices in BRIC countries," Resources Policy, Elsevier, vol. 69(C).
    19. Jiang, Chun & Zhang, Yadi & Kamran, Hafiz Waqas & Afshan, Sahar, 2021. "Understanding the dynamics of the resource curse and financial development in China? A novel evidence based on QARDL model," Resources Policy, Elsevier, vol. 72(C).
    20. Adabor, Opoku, 2023. "The effect of financial development on natural gas resource rent in Ghana," Resources Policy, Elsevier, vol. 83(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:89:y:2024:i:c:s030142072301259x. 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.