IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v95y2024ics0301420724005464.html
   My bibliography  Save this article

The Dual Faces of growth: Linear and non-linear effects of industrialization, financial development and natural resource rents on China's economy

Author

Listed:
  • Zhang, Xiaoli
  • Ahmad, Maaz
  • Gu, Xiao

Abstract

The literature on driving indicators of economic growth shows diverse findings and commonly derives symmetric relationships. The current research aims to observe the linear and non-linear influence of primary indicators of interest. The results reveal that industrial value-added positively, while urbanization negatively influences China's short and long-term economic growth. Conversely, natural resource rents exhibit no immediate positive effect but contribute to long-term economic growth. A positive change in industrial value and financial development enhances economic growth with a more profound positive shock in the short and long run. Simultaneously, their negative change reduces the economic growth in China. Whether positive or negative, fluctuations in natural resource rents contribute to economic growth, waving the asymmetric dynamic in the short and long run. Further, urbanization boosts economic expansion during negative shocks but lacks significance during positive shocks in both short and long runs. Moreover, the frequency domain causation approves the structural transformation. In the same scenario, notable discrepancies in wavelet decomposition show significant fluctuations across all series, contributing to economic growth. To boost both immediate and sustained economic growth, investing in industries focused on value addition and refining urban planning to balance growth between megacities and smaller emerging urban areas is essential.

Suggested Citation

  • Zhang, Xiaoli & Ahmad, Maaz & Gu, Xiao, 2024. "The Dual Faces of growth: Linear and non-linear effects of industrialization, financial development and natural resource rents on China's economy," Resources Policy, Elsevier, vol. 95(C).
  • Handle: RePEc:eee:jrpoli:v:95:y:2024:i:c:s0301420724005464
    DOI: 10.1016/j.resourpol.2024.105179
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724005464
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.resourpol.2024.105179?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.

    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:95:y:2024:i:c:s0301420724005464. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.