Dilemma of Natural Resource Abundance: A Case Study of Kuwait

Aljarallah, Ruba A.; Angus, Andrew

doi:10.1177/2158244019899701

Cited by 15 publications

(14 citation statements)

References 208 publications

(330 reference statements)

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“…To capture the influence of differences in factor endowment (FEDW) on global value chain participation, we introduce two different proxies; total labour force (lab) and total natural resource rents (Tnrr) in line with Weng (2010) and Ruba and Andrew (2020) respectively. We expect a positive influence of FEDW on GVCP.…”

Section: 0: Methodsmentioning

confidence: 99%

“…In addition to institution, several studies have also demonstrated that factor endowment is crucial for value chain participation. The endowment view argued that differences in natural resource endowment had an indirect significant influence on intra-regional trade through its impact on the quality of institutions (Mohsen, 2017;Ruba and Andrew, 2020) and directly on the global value chain (Barnabas et al, 2019). Mathias, Axel, Silke and Steffen ( 2007)'s empirical study on the nexus between institutions, governance, and trade in ECOWAS countries revealed that population, a proxy for factor endowment has an insignificant positive impact on intra-regional trade throughout the estimations.…”

Section: 0: Review Of Literaturementioning

confidence: 99%

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Impact of Trade Policies and Institutions on Global Value Chain Participation in ECOWAS

Olarinde

2021

Preprint

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This paper investigates the impacts of institutions and trade policies on Global Value Chains (GVCs) participation in ECOWAS. Leveraging on the New Trade Theory as a theoretical framework, the study estimates a gravity model consisting of 15 ECOWAS members’ countries for the period 2000–2018. The paper control for the possible endogeneity and other econometrics issues like heteroskedasticity and autocorrelation by adopting Poisson Pseudo-Maximum Likelihood estimation method. The results revealed that institutions significantly enhance GVCs participation, this positive impact was maintained even when it was disaggregated into various subcomponents. The result, however, revealed that tariffs on intermediates, infrastructures, and technology are harmful to GVCs participation in the West African region, while the impact of RTAs on GVC participation has been mixed. This implicates the objective of improving GVCs among West African States through the formation of RTAs is dependent on the harmonization and implementation of low tariffs on intermediates, improve the level of infrastructures and technology within a framework of qualitative institutions.

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Section: 0: Methodsmentioning

confidence: 99%

Section: 0: Review Of Literaturementioning

confidence: 99%

Impact of Trade Policies and Institutions on Global Value Chain Participation in ECOWAS

Olarinde

2021

Preprint

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“…Following Aljarallah and Angus (2020), we begin the development of our analytical framework by explaining the Solow (1956) model. This model is a simplification of the analysis of the determinants of economic growth.…”

Section: Analytical Frameworkmentioning

confidence: 99%

Does the Abundance of Natural Resources Crowd-Out the Manufacturing Sector? Evidence from Nigeria

Chile

Uzoechina

Eze

et al. 2021

5008

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Our objective in this study is to investigate if natural resource abundance can crowed-out the manufacturing sector in Nigeria. Under the framework of an ARDL and over a period of 1990-2019, findings of the results showed that in the short-run, natural resources positively impact on the manufacturing value added in the current period; however, after a one period lag, the contribution of natural resources to the manufacturing value added becomes negative. We also found that in the short-run, real interest rate, inflation rate and trade openness are negatively linked to the manufacturing value added, while employment in industry and gross fixed capital formation are positively related to the manufacturing value added. In the long-run, natural resources contributed positively to the manufacturing value added. The long-run results also show that the gross fixed capital formation and inflation rate negatively impact on the manufacturing valued added. The implication of our finding is that natural resources rent is closely linked to the success of the manufacturing sector and as such can also crowd-out the manufacturing sector. On grounds of these findings, we recommend, among others; that the proceeds from natural resources should be used to build critical infrastructure necessary to improve the performance of the manufacturing sector. This way, the economy can be diversified to create the needed employment.

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“…There is debate about the relationship between a country's natural resource abundance and economic growth. Case study [14] looks at the impact of resource surpluses in Kuwait using data from 1984 to 2014. Resource exports are relatively important in resource-rich countries, as they can be a major source of economic growth and development.…”

Section: Institutionsmentioning

confidence: 99%

“…R. Aljaralla and E. Angus analyze the impact of resource rent on GDP, labor productivity, human capital and the quality of institutions. Their research shows that using the Distributed Lag Autoregressive Model (ADL) and Error Correction Model (ECM), resource rent increases GDP per capita only in the short term; however, resource rent degrades productivity, human capital, and the quality of institutions both in the short and long term [14]. See [21,43,47].…”

Section: Institutionsmentioning

confidence: 99%

Methodology for assessing the impact of institute on sustainable economic growth

Zakharova

Zemtsova

2021

E3S Web Conf.

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The paper presents an overview of methodological approaches to the study of the influence of institutions on macroeconomic indicators characterizing long-term economic growth, although other indicators that are influenced by institutions can be identified: economic growth rate, GDP per capita, saving rate, and total factor productivity. The article analyzes the research of leading scientists conducted within the framework of the institutional theory that explains global inequality and some of its features. In addition to the institutional theory, two more theories compete to explain the causes of global inequality: geographical theory and the theory of cultural influence. Both of these theories are unpromising from the point of view of practical applicability, since geographical, climatic factors, cultural characteristics are not subject to the influence of economic policy within reasonable time limits. Institutional theory explains the inequality of countries by differences in their formal legal and informal social norms that govern the behavior of individuals and structure social interactions. The growing volume of empirical work of this kind has shown that institutions should be considered in the context of alternative approaches (culture and social capital, human capital), alternative econometric methods and alternative strategies for identifying the influence of institutions on macroeconomic indicators (long-term economic growth).

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Dilemma of Natural Resource Abundance: A Case Study of Kuwait

Cited by 15 publications

References 208 publications

Impact of Trade Policies and Institutions on Global Value Chain Participation in ECOWAS

Impact of Trade Policies and Institutions on Global Value Chain Participation in ECOWAS

Does the Abundance of Natural Resources Crowd-Out the Manufacturing Sector? Evidence from Nigeria

Methodology for assessing the impact of institute on sustainable economic growth

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