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Natural Resource Rents and Social Capital Interaction: New Evidence on the Role of Financial Development

Author

Listed:
  • Farzaneh Ahmadian-Yazdi

    (Ferdowsi University of Mashhad, Azadi Sq., Mashhad 9177948974, Iran)

  • Mahsa Mesgarani

    (Ferdowsi University of Mashhad, Azadi Sq., Mashhad 9177948974, Iran)

  • Soheil Roudari

    (��Department of Economics, University of Qom, 3716146611, Iran)

Abstract

The varied opinions on financial developmental impacts on growth in different economies have been the subject of considerable debates among economists during the last two decades, especially in natural-resource-rich countries. However, the role of financial development on a crucial channel of growth, i.e. social capital, has been neglected. Unlike previous studies, the level of income in resource-based economies has been considered an important factor influencing the way financial development affects social capital-resource rents’ interactions. Thus, in this paper, the impact of financial development as an infrastructure to turn natural capital into social capital has been investigated in two groups of resource-abundant countries using a panel data model during 2009:Q1-2016:Q4. The empirical results in the case of high-income economies show that a high level of financial development can ensure resource rents, positively influencing social capital. However, findings indicate an adverse impact of natural resource rents on social capital in medium-income countries.

Suggested Citation

  • Farzaneh Ahmadian-Yazdi & Mahsa Mesgarani & Soheil Roudari, 2022. "Natural Resource Rents and Social Capital Interaction: New Evidence on the Role of Financial Development," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-30, March.
    • Handle: RePEc:wsi:jeapmx:v:24:y:2022:i:01:n:s1464333222500211
    DOI: 10.1142/S1464333222500211
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    Citations

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    Cited by:

    1. Zhang, LiXia & Baloch, Zulfiqar Ali & Niu, Guangli, 2023. "Effects of COVID-19 on green bonds, renewable power stocks, and carbon markets: A dynamic spillover analysis," Renewable Energy, Elsevier, vol. 216(C).
    2. 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).
    3. Zhao, Jun & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "Is income inequality a stumbling block to the global natural gas market?," Energy Economics, Elsevier, vol. 118(C).
    4. Işık, Cem & Ongan, Serdar & Islam, Hasibul & Menegaki, Angeliki N., 2024. "A roadmap for sustainable global supply chain distribution: Exploring the interplay of ECON-ESG factors, technological advancement and SDGs on natural resources," Resources Policy, Elsevier, vol. 95(C).
    5. Jin Sheng & Yubin Gao, 2023. "Combining the financial development and stock market return for green economic recovery in selected developing economies," Economic Change and Restructuring, Springer, vol. 56(6), pages 3885-3908, December.
    6. Ma, Mengjuan & Zhu, Xiao & Liu, Meishan & Huang, Xiaodong, 2023. "Combining the role of green finance and environmental sustainability on green economic growth: Evidence from G-20 economies," Renewable Energy, Elsevier, vol. 207(C), pages 128-136.
    7. Jianhe Wang & Mengxing Cui & Lei Chang, 2023. "Evaluating economic recovery by measuring the COVID-19 spillover impact on business practices: evidence from Asian markets intermediaries," Economic Change and Restructuring, Springer, vol. 56(3), pages 1629-1650, June.
    8. Liu, Zhen & Li, Ruotong & Cai, Renjie & Lan, Jing, 2023. "A nexus of income inequality and natural resource utilization efficiency: Effect on the road to green economic recovery," Resources Policy, Elsevier, vol. 85(PA).
    9. 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).
    10. Xiaomeng Zhao & Kangyin Dong & Jun Zhao & Qingzhe Jiang, 2024. "RETRACTED ARTICLE: Paths to sustainable development in China: why green finance and green technology matter?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-26, April.
    11. Zhao, Xue & Xie, Chengyuan & Huang, Lu & Wang, Yaru & Han, Tongyun, 2023. "How digitalization promotes the sustainable integration of culture and tourism for economic recovery," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 988-1000.
    12. Wang, Yunxian & Wang, Xin & Zhang, Zheng & Cui, Zhanmin & Zhang, Yuan, 2023. "Role of fiscal and monetary policies for economic recovery in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 51-63.
    13. Shuang Cai, 2023. "Impact of digitization on green economic recovery: an empirical evidence from China," Economic Change and Restructuring, Springer, vol. 56(5), pages 3139-3161, October.

    More about this item

    Keywords

    Financial development; natural resource rents; social capital; panel data analysis;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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