Revisiting natural resources rents and sustainable financial development: Evaluating the role of mineral and forest for global data

Jiao He and Zhenghua Deng

Resources Policy, 2023, vol. 80, issue C

Abstract: This study analyzes the impact of total natural resources rents, economic growth, mineral rents, and forest rents on global financial development. Using the extended period from 1990 to 2020, this study utilizes the novel Quantile-on-Quantile regression approach. The estimated results asserted that economic growth is favorable for global financial development. However, total natural resources, mineral rents, and forest rents exhibit asymmetric influence on global financial development. The influence is positive with a lower frequency but negative in most quantiles for the latter (natural resources) variables. The negative impact of natural resource rents substantiates the natural resource curse in global financial development. The Breitung-Candelon Spectral Granger causality test asserted that total natural resources rents cause global financial development in the long run. It validates the importance of total natural resources in attaining global financial development. Based on the empirical results, this study suggests policies to help global financial development. Specifically, enhanced economic growth and government intervention in regulating natural resources via utilizing financial resources.

Keywords: Natural resources; Mineral rents; Forest rents; Economic growth; Financial development; Quantile-on-quantile regression (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420722006092
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722006092

DOI: 10.1016/j.resourpol.2022.103166

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().