IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v97y2024ics0301420724006263.html
   My bibliography  Save this article

Impacts of economic development, globalization, and gross capital formation on natural resources rents: Evidence from India

Author

Listed:
  • Roy, Arup

Abstract

Natural resources are a country's wealth, and resources economics and policy literature has extensively researched how to utilize this richness as a determinant of the country's growth. However, the primary challenges reside in establishing economic development as a driver for natural resource rents. Given this context, this study explores the association between economic development, globalization, gross capital formation, and natural resources rents in India. For the empirical research, the study employed Dynamic Auto-Regressive Distributive Lag (DARDL) simulation and Kernel-based Regularized Least Squares (KRLS) approaches on yearly data from 1990 to 2020. The present research used a unit root test to ascertain the stationary state across all variables, establishing their long-term cointegration connection. Results suggest that capital formation and economic development positively impact rents derived from natural resources in India, while globalization negatively affects natural resources rents. Unidirectional causation of economic development, globalization, and gross capital creation to natural resources rents has been established in this study using the Toda-Yamamoto causality model. Our findings have important policy implications and support the idea that sustainable economic growth models inherently rely on factors like the efficient utilization of natural resources and globalization.

Suggested Citation

  • Roy, Arup, 2024. "Impacts of economic development, globalization, and gross capital formation on natural resources rents: Evidence from India," Resources Policy, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:jrpoli:v:97:y:2024:i:c:s0301420724006263
    DOI: 10.1016/j.resourpol.2024.105259
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724006263
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105259?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.

    More about this item

    Keywords

    Natural resource rent; Globalization; Economic growth; Gross capital formation; DARDL;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    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:97:y:2024:i:c:s0301420724006263. 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.