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Driver or a Barrier to the Economy: Natural Resources a blessing or a curse for Developed Economies?

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  • Wang, Jia
  • Tian, Guixian
Abstract
The development of the economy depends on a richness of natural resources being accessible. Countries might make large revenues from the extraction of Natural resources, which could be used to fund different economic programs. On the other hand, overuse of natural resources may harm and degrade the ecosystem. There is still a need to understand the specific dynamics of the influence of natural resources on various levels of economic performance. This study investigates the effects of natural resource rents on distinct quantiles of economic development in G7 countries over the period of 1990–2020. This study uses tourism, energy efficiency, technological innovation, and risk as other important determinants of economic growth. We use a quantile regression technique to quantify the link between the variables. The quantile regression approach allows us to examine how these factors influence change at different economic performance levels. The results show that natural resources have a favorable effect on economic growth at all quantiles. According to the results, it is advised that governments put effective resource management strategies into place to make sure the NRs can be used sustainably. Based on the results of the study, it is recommended that governments put effective resource management practices into place to make sure the NRs can be used sustainably.

Suggested Citation

  • Wang, Jia & Tian, Guixian, 2023. "Driver or a Barrier to the Economy: Natural Resources a blessing or a curse for Developed Economies?," Resources Policy, Elsevier, vol. 87(PA).
    • Handle: RePEc:eee:jrpoli:v:87:y:2023:i:pa:s0301420723010425
    DOI: 10.1016/j.resourpol.2023.104331
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