Asymmetric dynamics and quantile dependency of the resource curse in the USA

Lu Wang, Gong-li Luo, Arshian Sharif () and Gheorghita Dinca

Resources Policy, 2021, vol. 72, issue C

Abstract: The current research examines the asymmetric relationship between the natural resources rent (NRR) and financial development (FD) under the shadow of the USA's resource curse hypothesis during 1980–2018. This research has applied the Quantile Autoregressive distributed Lag (QARDL) method, along with Granger-causality in Quantiles, to investigate the relationship among the NRRs and FD on a causal basis along with the gross domestic product, renewable energy (REN), and non-renewable energy (NEN), respectively. The QARDL model's findings provide evidence that the error correction parameter is significantly negative for all the quantiles except for 0.05, 0.10, and 0.20. This outcome confirms the existence of a long-run equilibrium association between the study variables and FD in the USA's economy. Furthermore, the present study's outcomes suggested that economic growth and REN are positively contributing towards FD in the stated quantiles. Finally, this research has tested the “resource curse Hypothesis,” and findings through QARDL confirm its presence through NRR and FD relationship. The study outcome for the Granger-causality causal inquiry in the quantiles clear the bi-directional causal association among the study key variables.

Keywords: Natural resources; Gross domestic product; Financial development; QARDL; USA (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:72:y:2021:i:c:s0301420721001185

DOI: 10.1016/j.resourpol.2021.102104

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