Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?

Guan, Jialin; Kırıkkaleli, Derviş; Bibi, A.; Zhang, Weike

doi:10.1016/j.resourpol.2020.101641

Cited by 219 publications

(84 citation statements)

References 54 publications

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“…Echoing the successful application of both FMOLS and DOLS in testing the robustness of the ARDL results by Yuzbashkandi and Sadi [104], Pasha and Ramzan [112], Priyankara [107], and Adebayo [97] we consider these two methods as efficient estimators to study serial interactions and examine potential correlations between Y and X (1-4) . Some scholars, for instance, Aliyev et al [81], Guan et al [113], Yue et al [114], and Rahman et al [115], further checked FMOLS and DOLS results by employing the canonical cointegration regression (CCR). The method is commonly implemented to remove the long-run dependencies between the cointegrating equation and stochastic regressors, which does not apply to small samples in the short-run used in our study.…”

Section: Interactionmentioning

confidence: 99%

Impacts of COVID-19 on Trade and Economic Aspects of Food Security: Evidence from 45 Developing Countries

Erokhin

Tianming

2020

IJERPH

231

173

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The stability of food supply chains is crucial to the food security of people around the world. Since the beginning of 2020, this stability has been undergoing one of the most vigorous pressure tests ever due to the COVID-19 outbreak. From a mere health issue, the pandemic has turned into an economic threat to food security globally in the forms of lockdowns, economic decline, food trade restrictions, and rising food inflation. It is safe to assume that the novel health crisis has badly struck the least developed and developing economies, where people are particularly vulnerable to hunger and malnutrition. However, due to the recency of the COVID-19 problem, the impacts of macroeconomic fluctuations on food insecurity have remained scantily explored. In this study, the authors attempted to bridge this gap by revealing interactions between the food security status of people and the dynamics of COVID-19 cases, food trade, food inflation, and currency volatilities. The study was performed in the cases of 45 developing economies distributed to three groups by the level of income. The consecutive application of the autoregressive distributed lag method, Yamamoto’s causality test, and variance decomposition analysis allowed the authors to find the food insecurity effects of COVID-19 to be more perceptible in upper-middle-income economies than in the least developed countries. In the latter, food security risks attributed to the emergence of the health crisis were mainly related to economic access to adequate food supply (food inflation), whereas in higher-income developing economies, availability-sided food security risks (food trade restrictions and currency depreciation) were more prevalent. The approach presented in this paper contributes to the establishment of a methodology framework that may equip decision-makers with up-to-date estimations of health crisis effects on economic parameters of food availability and access to staples in food-insecure communities.

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Section: Interactionmentioning

confidence: 99%

Impacts of COVID-19 on Trade and Economic Aspects of Food Security: Evidence from 45 Developing Countries

Erokhin

Tianming

2020

IJERPH

231

173

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“…Natural resources are beneficial in the development and an asset of a country (Asif et al, 2020). Still, under certain conditions, natural resources create an exigent environment for development in the financial sector (Guan et al, 2020). The mostly highly resource-rich economies are facing the reduction in financial development level and empirically have shown in literature such as (Sachs and Warner, 2001;Hooshmand et al, 2013;Elbadawi and Soto, 2016;Zhang and Brouwer, 2020;Khan et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Financial development is assumed to be a base for converting resource curse into resource blessing in the presence of high institutional quality, high trade and high quality of human capital (Rajan and Zingales, 2003). Existing studies shows the harmful connection of resources with financial development (Cordon and Neary, 1982;Zoega and Gylfason, 2001;Guan et al, 2020;Sun et al, 2020). On the other hand, there is a literature in the contradiction of these studies that shows the positive link (Balassa, 1980;Sachs and Warner, 1995;Auty, 2001;Nawaz et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Financial Development and Natural Resources Dynamics in Saudi Arabia: Visiting ‘Resource Curse Hypothesis’ by NARDL and Wavelet-Based Quantile-on-Quantile Approach

Chaudhry

Faheem

Farooq

et al. 2021

READS

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This study analyses the impact of natural resource rent on financial development to test the resource curse hypothesis in Saudi Arabia on quarterly data span from 1985Q1 to 2017Q4. We employ two novel methodologies at same time such as nonlinear autoregressive model (NARDL) and Wavelet-based quantile-on-quantile estimation to check the asymmetric behaviour of natural resource rent on financial development. The findings of NARDL confirm the nonlinear behaviour of natural resource rent with financial development. The results also show real GDP, gross capital formation and institutional quality affect financial development positively. The empirical results of Wavelet-based quantile-on-quantile estimation method also reveal the heterogeneous response of natural resource rent effect when decomposes into different quantiles that become positive to negative. The results further explain that the natural resource rent has a positive effect in short-run, but it exerts an adverse effect on financial development after attaining stability.

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“…Duration of global financial cycles plays a definite role in the global financial system, which is determined by fluctuations in short-term capital flows, changes in monetary conditions in central economies, and combined movement of asset prices [4]. Globalization in the short and medium term is linked to financial development [5]. Economic globalization has an impact on national innovations.…”

Section: Methodsmentioning

confidence: 99%

Russia in Economic Globalization

et al. 2020

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The article analyzes the current state of the Russian economy in the context of globalization. The research reveals the dominant role of capitalist countries in the process of globalization. The role of developing countries is related to ensuring a balanced world economy. Globalization causes changes in world economic relations. Russia has taken an active position not only among developing but also developed countries. The article reveals that in the context of the US trade war with China and increased protectionism, developing countries have assumed the risks of losing capital and falling into a deeper and longer recession. Russia’s position in economic globalization is linked to the place of BRICS in modern world order. Modern world order requires Russia to initiate the creation of new geopolitical communities, in addition to BRICS. To maintain Russia’s stable position in the world economy, modern objective reality requires not only its participation in various geopolitical communities,but also their initiation.

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Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?

Cited by 219 publications

References 54 publications

Impacts of COVID-19 on Trade and Economic Aspects of Food Security: Evidence from 45 Developing Countries

Impacts of COVID-19 on Trade and Economic Aspects of Food Security: Evidence from 45 Developing Countries

Financial Development and Natural Resources Dynamics in Saudi Arabia: Visiting ‘Resource Curse Hypothesis’ by NARDL and Wavelet-Based Quantile-on-Quantile Approach

Russia in Economic Globalization

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