Dynamics between economic growth, labor, capital and natural resource abundance in Iran: An application of the combined cointegration approach

Ahmed, Khalid; Mahalik, Mantu Kumar; Shahbaz, Muhammad

doi:10.1016/j.resourpol.2016.06.005

Cited by 167 publications

(69 citation statements)

References 54 publications

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“…Natural resources Granger cause economic growth; consequently, economic growth Granger causes natural resources. This empirical evidence is consistent with Satti et al (2014) and Ahmed et al (2016) for Venezuelan and Iranian economies, respectively. The feedback effect, i.e., bidirectional causality, exists between capital and financial development (natural resources).…”

Section: Empirical Results and Their Interpretationsupporting

confidence: 85%

“…All the variables have been transformed into natural-log after converting into per capita units by following Ahmed et al (2016). The data transformation into per capita units normalizes the data distribution and log-linear specification provides reliable empirical results in elasticities between independent and dependent variables respectively.…”

Section: Model Construction and Data Collectionmentioning

confidence: 99%

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Is natural resource abundance a stimulus for financial development in the USA?

et al. 2018

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This paper investigates the stimulating role of natural resource abundance in financial development for the case of the USA over the period of 1960-2016. We included education, economic growth and capitalization as additional determinants of financial development in finance demand function. Thus, we applied traditional and recent unit root tests, accommodating unknown structural breaks in the series for examining the unit root properties of the variables. To examine cointegration between the variables, we apply the Bayer-Hanck cointegration approach. The robustness of cointegration relationship is tested by applying the bounds testing approach to cointegration. The empirical results show the presence of cointegration between financial development and its determinants. In the long run, we observe that natural resource abundance contributes to financial development. Education has a positive impact on financial development. A positive relationship exists between economic growth and financial development. Capitalization is inversely linked with financial development. The causality analysis reveals a feedback effect between natural resource abundance and financial development i.e. natural resource abundance causes financial development; in turn, financial development Granger causes natural resource abundance. This empirical evidence provides new insights for policy makers to use natural resource abundance as an economic tool to improve the performance of financial sector by considering the role of economic growth and education.

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Section: Empirical Results and Their Interpretationsupporting

confidence: 85%

Section: Model Construction and Data Collectionmentioning

confidence: 99%

Is natural resource abundance a stimulus for financial development in the USA?

et al. 2018

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“…, and Ahmed et al . , the relationship between natural resources, energy demand, climate change, and air pollution is modeled using production function. Khan et al .…”

Section: Methodsmentioning

confidence: 99%

Decomposing the linkages between energy consumption, air pollution, climate change, and natural resource depletion in Pakistan

Zaman

Abdullah

Ali³

2016

Env Prog and Sustain Energy

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This study aims at examining the causal relationship between energy consumption, natural resources, environmental pollution (i.e., CO2 emissions) and climate change (i.e., Greenhouse gas emissions ‐ GHG) in the context of Pakistan, over the period of 1975–2012. The study applied bivariate cointegration and Granger causality technique for robust inferences. The results show that energy demand increases gas rents, natural resource rents, and oil rents while it exhausts the natural resources. Natural resources further affected by air pollution and climate change in a country. The results of Granger causality indicate that there is a bidirectional causality between (i) energy consumption and net forest depletion, (ii) energy demand and oil rent, (iii) forest rents and CO2 emissions, (iv) natural resource depletion and GHG emissions, and (v) net forest depletion and GHG emissions, while, there is a unidirectional causality running from CO2 emissions to oil rents, from net forest depletion to CO2 emissions, and from GHG emissions to forest rent, mineral rent, natural gas rent, and oil rent in a country. Finally, the study confirmed the “neutrality hypothesis” between coal rent, natural resource rent, and GHG emissions in Pakistan. © 2016 American Institute of Chemical Engineers Environ Prog, 36: 638–648, 2017

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“…These leads to a reduction in savings and investments in human capital and other sectors in the economy. This means that resource revenues shifts productive entrepreneurs to rent seeking (Ahmed et al, 2016).…”

Section: Dutch Diseasementioning

confidence: 99%

“…It is recommended to reinforce the quality of the institutions to sustain growth. Ahmed et al (2016) discuss the resource curse hypothesis in Iraq using the time-series data over the period of 1965-2011. Economic growth has been estimated as a Cobb Douglas production function which includes natural resources, exports, capital and labor.…”

confidence: 99%

Natural Resource Rents and Unemployment in Oil Exporting Countries

Raouf

2017

Asian Economic and Financial Review

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The main objective of this study is to examine short-run and long-run relationship between natural resource rents and unemployment in OPEC and OAPEC countries over the period from 1991 to 2016, using PMG-ARDL model. The causality test shows that causality runs from total natural resources rents to unemployment. The study finds that, on the long-run, the impact of natural resource rents on unemployment rate is a positive significant impact, whether using aggregated data for natural resource rents or disaggregated (oil and natural gas). Almost all the variables have no significant impact on unemployment on the short-run. Contribution/ Originality:This study contributes in the existing literature by investigating the impact of natural resource rents on unemployment. This study is one of very few studies which have disaggregated natural resources and studying the effect of each one of the components of natural resources not only the aggregate level.

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Dynamics between economic growth, labor, capital and natural resource abundance in Iran: An application of the combined cointegration approach

Cited by 167 publications

References 54 publications

Is natural resource abundance a stimulus for financial development in the USA?

Is natural resource abundance a stimulus for financial development in the USA?

Decomposing the linkages between energy consumption, air pollution, climate change, and natural resource depletion in Pakistan

Natural Resource Rents and Unemployment in Oil Exporting Countries

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