Hayat, Arshad and Tahir, Muhammad (2021): Natural resources and economic growth: evidence from the resource-rich region. Published in: Journal of Risk and Financial Management , Vol. 2, No. 14 (19 February 2021): pp. 1-17.
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Abstract
This research paper investigates the impact of natural resources volatility on economic growth. The paper focused on three resource-rich economies, namely, UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach, we found that both natural resources and their volatility matter from the perspective of growth. The study found strong evidence in favor of a positive and statistically significant relationship between natural resources and economic growth for the economies of UAE and Saudi Arabia. Similarly, for the economy of Oman, a positive but insignificant relationship is observed between natural resources and economic growth. However, we found that the volatility of natural resources has a statistically significant negative impact on the economic growth of all three economies. This study contradicts the traditional concept of the resources curse and provides evidence of the resources curse in the form of a negative impact of volatility on economic growth.
Item Type: | MPRA Paper |
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Original Title: | Natural resources and economic growth: evidence from the resource-rich region |
Language: | English |
Keywords: | Natural Resources, Volatility, Economic Growth, ARDL Modeling, GCC |
Subjects: | O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q33 - Resource Booms |
Item ID: | 106229 |
Depositing User: | Dr Arshad Hayat |
Date Deposited: | 22 Feb 2021 10:58 |
Last Modified: | 22 Feb 2021 10:58 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/106229 |
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Natural resources volatility and economic growth: evidence from the resource-rich region. (deposited 25 Feb 2019 12:01)
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Natural resources and economic growth: evidence from the resource-rich region. (deposited 07 Apr 2020 14:05)
- Natural resources and economic growth: evidence from the resource-rich region. (deposited 22 Feb 2021 10:58) [Currently Displayed]
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Natural resources and economic growth: evidence from the resource-rich region. (deposited 07 Apr 2020 14:05)