Natural resource endowment and urban green total factor productivity: “Resource gospel” or “resource curse”?

Abstract

This study constructs an economic growth model that includes natural resource endowments to theoretically explore the paradox of “resource gospel” and “resource curse.” Based on the theoretical analysis, the influence of natural resources on green total factor productivity is analyzed empirically through an econometric model using Chinese urban panel data from 2010 to 2019. The theoretical analysis shows that the impact of natural resource endowment on green total factor productivity is indecisive. The empirical results show that natural resource endowments significantly lessen urban green total factor efficiency, and the results remain robust after addressing for endogeneity issues and robustness tests. However, this effect is significantly heterogeneous depending on the city level and science and education level; for example, the “resource curse” effect is more pronounced in non‐central cities and cities with average education and science level. Simultaneously, the mechanism analysis shows that natural resource endowment reduces urban total factor productivity by inhibiting innovation and introducing choices in the technological progress approach. Therefore, the research findings bring empirical evidence to promote reforms in natural resource allocation and provide theoretical support for encouraging green total factor productivity in resource‐based cities.