The Nexus between Economic Growth and Natural Resource Abundance in Selected ASEAN countries before Pandemic Covid-19

Abdul Rahim Ridzuan, Mohd Shahidan Shaari, Anita Rosli, Abdul Rahim Md Jamil, Siswantini Siswantini, Arsiyanti Lestari and Shahsuzan Zakaria
Additional contact information
Abdul Rahim Ridzuan: Faculty of Business and Management, Universiti Teknologi MARA, Melaka Campus, Malaysia,
Mohd Shahidan Shaari: Faculty of Applied and Human Sciences, Universiti Malaysia Perlis, Malaysia
Anita Rosli: Faculty of Humanities, Management and Sciences, Universiti Putra Malaysia, Malaysia,
Abdul Rahim Md Jamil: School of Business and Economics, Universiti Putra Malaysia, Malaysia,
Siswantini Siswantini: Faculty of Economic and Communication, Bina Nusantara University, Alam Sutera Campus, Indonesia,
Arsiyanti Lestari: Faculty of Economic and Communication, Bina Nusantara University, Kemanggisan Campus, Indonesia,
Shahsuzan Zakaria: Faculty of Business and Management, Universiti Teknologi MARA, Shah Alam Campus, Malaysia.

International Journal of Energy Economics and Policy, 2021, vol. 11, issue 2, 281-292

Abstract: Abundant natural resources play an important role in boosting economic growth. However, as the Dutch disease emerged in the 1970s, innumerable researchers were attracted to investigate the negative impact of abundant natural resources on economic growth. The issue has been rigorously discussed in a large number of previous studies. However, they did not investigate the effect of economic growth on natural resource abundance. Therefore, this study embarks on an investigation into the effect of economic growth on natural resource abundance in selected ASEAN countries, namely Thailand, Singapore, Malaysia, Brunei, the Philippines, Vietnam, Cambodia and Indonesia. This study employs the static panel method to analyse data ranging from 2000 to 2016. The results show that foreign direct investment and direct investment can have negative impacts on natural resource abundance. An increase in economic growth, on the other hand, can have a positive impact of natural resource abundance. Other factors such as financial development, trade openness and governance do not influence natural resource abundance. Therefore, these findings can shed light for policymakers to formulate policies for future references as the outcomes based on before the spread of Covid-19 diseases. The countries can enhance economic growth to pave the way for more exploration of natural resources. Higher economic growth can lead to more advanced technologies and thus it is easy to extract more natural resources. Foreign direct investment and direct investment should be controlled to ensure that natural resources will not be exhausted.

Keywords: natural resource abundance; economic growth; static panel; ASEAN (search for similar items in EconPapers)
JEL-codes: O13 Q32 Q33 Q38 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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