Is resource abundance a curse for green economic growth? Evidence from developing countries

Shuhong Wang, Xiaoqing Wang and Binbin Lu

Resources Policy, 2022, vol. 75, issue C

Abstract: Green economic growth emphasizes the coordinated development of economy and environment under the constraints of resource-carrying and environmental capacities. Many developing countries rich in natural resources face more severe resource and environmental problems with relatively poor green growth performance. In this context, whether an abundance of resources hinders the growth of the green economy has become a significant issue of debate. Here, we use the non-radial distance function to calculate a green economic growth evaluation index and examine the relationships between resource abundance and green economic growth in 40 resource-rich developing countries in Asia, Africa, and Latin America. We also evaluate the mechanism and transmission pathway between resource abundance and economic growth. Our results show that an abundance of resources restrains the growth rate of the green economy in developing countries mainly via an “innovation effect” and a “technical leader transfer effect”, which promote resource-rich regions to undermine green economic growth. In terms of transmission, this effect exerts a negative impact on green economic growth by squeezing out technological spillovers from technological innovation, human capital investment, and opening up to the outside world. Therefore, governments should increase investment in human capital development, improving infrastructure for green technology research and development, and planning for the settlement of emerging industries and green industries. These strategies are conducive to the realization of green growth transition and sustainable economic development in developing countries.

Keywords: Green economic growth; Abundant resources; Resource curse; Crowding out effect; Non-radial direction distance function (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005407

DOI: 10.1016/j.resourpol.2021.102533

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