Natural resource abundance and financial development: A case study of emerging seven (E−7) economies

Sun, Yanpeng; Ak, Aysegul; Serener, Berna; Xiong, Deping

doi:10.1016/j.resourpol.2020.101660

Cited by 61 publications

(31 citation statements)

References 51 publications

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“…Our results are similar to the studies of Sun et al (2020) and Khan et al (2020) that revealed the association of a natural resource with financial development and confirms negative association in emerging seven (E7) and China, respectively.…”

Section: 3supporting

confidence: 91%

“…The study concludes that the areas with highly depend on the natural resource are slower in financial development as compared to poor natural resources areas. Sun et al (2020) analyze in emerging seven (E7) countries about the natural resource and financial development link over 1990-2017. The study concludes that the negative influence of natural resource rent on financial development.…”

Section: Literature Reviewmentioning

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%

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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

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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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Section: 3supporting

confidence: 91%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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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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“…13 Because, it facilitates the flow of funds to the real sector in development countries financially and this situation enhances economic growth. 14 In addition, financial development increases trade and develops financial market 15 and captivate foreign trade. 16 Financial development has a significant task in increasing the environmental pollution.…”

Section: Introductionmentioning

confidence: 99%

The nexus among climate change, economic growth, foreign direct investments, and financial development: New evidence from N‐11 countries

Aslan

Altınöz

Polat

2021

Env Prog and Sustain Energy

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The aim of this article is to investigate the relationship between air pollution, economic growth, energy use, trade openness, foreign direct investment, and financial development in N‐11 countries data period from 1980 to 2018. For this purpose, it is adopted the Panel Vector Autoregression (PVAR) model for the estimation of the long and short‐run effects. The results suggest that although energy consumption and financial development have a negative impact on CO2 emissions, foreign direct investment leads to an increase in pollution. In addition, there is bidirectional causality between financial development and CO2 emissions and energy use, carbon dioxide emissions and energy consumption, foreign direct investments and energy consumption, and financial development and energy consumption. In addition, there is unidirectional causality from carbon dioxide emissions to GDP, from energy consumption to GDP, from foreign direct investments to CO2 emissions and GDP, from financial development to GDP. Finally, impulse‐response functions indicate the validity of the EKC hypothesis in these countries.

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“…A sound financial system is vital for the efficient utilization and sustainable use of NR and the stimulation of economic growth (Nathaniel et al, 2020e). FD is required to attain higher economic growth (Redmond and Nasir 2020;Sun et al 2020;Nathaniel et al 2020b;Nawaz et al 2019). A developed financial sector facilitates the transfer of funds, stimulate savings, create investment opportunities, encourage corporate control, drives innovation, and promotes risk management (Murshed et al 2020b;Gokmenoglu and Rustamov, 2019).…”

Section: Introductionmentioning

confidence: 99%

Natural resource abundance and broad-based financial development nexus in ASEAN countries: accounting for globalization and human capital

Nathaniel

2021

Eur J Gov Econ

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Sustainable resource consumption is important for the development of the financial system. Besides, an advanced financial system eases the transfer of revenues from production activities and export to productive investments. The influence of natural resource (NR) abundance on financial development (FD) is still an ongoing debate with conflicting results. However, this study applies a novel proxy for FD, which measures the efficiency, accessibility, and depth of the financial market and institutions. Therefore, the current study is a maiden attempt to explore the nexus between FD and NR abundance amidst globalization, human capital, and economic growth in ASEAN economies. Reliable panel econometric techniques, including second-generation unit root tests, Westerlund (2007) cointegration tests, and the Augmented Mean Group (AMG) estimator are employed on the data for the period 1990-2017. The preliminary tests affirm the existence of cross-sectional dependence, unit root, and cointegrating relationship among the variables. The findings from the study reveal that NR abundance reduces FD, while globalization, human capital and economic growth add to FD. A feedback causality exists between NR abundance and FD. Thus, this study argues that more investment in the manufacturing sector will ease the attainment of efficiency in financial sector accessibility and benefits from NR abundance.

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Natural resource abundance and financial development: A case study of emerging seven (E−7) economies

Cited by 61 publications

References 51 publications

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

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

The nexus among climate change, economic growth, foreign direct investments, and financial development: New evidence from N‐11 countries

Natural resource abundance and broad-based financial development nexus in ASEAN countries: accounting for globalization and human capital

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