This paper attempts to provide a probable answer to a longstanding resource curse puzzle;i.e., why resource-rich nations grow at a slower rate compared to less fortunate ones. Using an innovative threshold estimation technique, the empirical results reveal that there is a threshold effect in the natural resources -economic growth relationship. We find that the impact of natural resources is meaningful to economic growth only after a certain threshold point of institutional quality has been attained. The results also shed light on the fact that the nations that have low institutional quality depend heavily on natural resources while countries with high quality institutions are relatively less dependent on natural resources to generate growth.JEL Classifications: O11, O13, Q32

This paper investigates the effect of financial inclusiveness on economic growth in selected developed and developing countries (63 countries) for the years of 2014 and 2017. The level of financial inclusiveness for each country is calculated using a new construction of the financial inclusion index. The role of financial inclusiveness on economic growth is subsequently estimated using a cross-sectional threshold regression technique. The main findings revealed that there is a threshold effect of the financial inclusiveness-growth nexus, which means that financial inclusiveness exhibits a non-monotonic positive relation with economic growth. The positive effect is more pronounced at a high level than in the low level of financial inclusion index. These new findings should motivate policymakers and the banking sector in each country to exert greater effort in raising the level of financial inclusion in stimulating sustainable economic growth.

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This study empirically investigates the effect of innovation on economic growth using the neoclassical economic growth model. Embarking from the traditional labour growth, physical capital and human capital framework, innovation is postulated to be the main driver for robust economic growth. Using time series techniques, we discover very attention-grabbing findings that highlight the impact of innovation on economic growth for Malaysia. First, the innovation measured by the quantity of a total number of a patent application is statistically insignificant. The result is robust for various innovation measurements, including total local patent application and total foreign patent application. Interestingly, switching to total patent grant instead of a total number of patent application (local or foreign), the empirical result shows a significant impact on economic growth. The finding indirectly reveals the crucial impact of quality innovation rather than the quantity concern. Neglecting both quality and the commercialisation process of these new technologies may not solve the rigidity of knowledgecommercialisation paradox. Finally, we test for the prominent institutional quality in mediating economic growth under a knowledge-based economy. The interaction between institutional quality and the total patent grant has significantly accelerated the role of innovation channel to economic growth. The empirical findings imply that inadequacy of innovative technology flow over the long term has a detrimental effect on national innovative capacity. Thus, the innovation-economic growth nexus needs to be complemented with a good institutional quality framework, skilled human capital and broader networking to commercialise the innovative product to ensure that the innovation activities promote economic growth.

The main objective of this paper is to reinvestigate the impacts of non-tariff measures (NTMs) on bilateral exports among Regional Comprehensive Economic Partnership (RCEP) countries. The study adds to the literature in two areas. First, we calculate coverage ratios for NTMs related to specific sustainable development goals (SDGs) imposed on bilateral trade between RCEP member countries. Second, to avoid aggregation bias, the analysis covers four major sectors, namely agrifood, health, logistics, and other manufacturing. The results of a Poisson pseudo maximum likelihood (PPML) regression in a gravity model, using average import data from 2016 to 2018 at the Harmonized Commodity Description and Coding Systems (HS) two-digit level (97 subsectors), show that the effects of SDG-related NTMs vary by sector. NTMs related to SDG 3 (good health and well-being) distort trade in health but enhance trade in logistics. NTMs related to SDG 12 (responsible consumption and production) have a negative impact on logistics but a positive impact on other manufacturing exports. The findings provide new perspectives on the varying impacts of SDG-related NTMs on trade. Interestingly, the study finds that NTMs addressing SDGs 3 and 12 have positive trade impacts. Policymakers should, however, regulate NTM implementation, to minimize negative impacts and ensure that domestic firms comply to promote sustainable production.