Nexuses between rent of natural resources, economic complexity, and technological innovation: The roles of GDP, human capital and civil liberties

Rafael Alvarado (), Muntasir Murshed, Javier Cifuentes-Faura, Cem Işık, Mohammad Razib Hossain and Brayan Tillaguango

Resources Policy, 2023, vol. 85, issue PA

Abstract: One way to achieve sustainable development is by generating and registering inventions that facilitate the creation of new products and processes. However, there is concern that excessive reliance on natural resource rent leads to a low rate of technological innovation. This research aims to examine the nexus between natural resource rent, technological innovation, and economic complexity using panel data techniques. Output, the human capital index, and civil liberties moderate the relationship between the variables. Based on the volatility of natural resource income, we use cointegration techniques with structural breaks in the series. Contrary to what was expected, we found that dependence on natural resources is not a limitation for developing technological innovation processes in countries. The cointegration tests, including structural breaks, show a long-run relationship between the five series. Policymakers should use the income from the exploitation of natural resources to encourage technological innovation and diversify the economy, and with this, promote sustainable development.

Keywords: Natural resources; Technological innovation; Economic complexity; GDP; Human capital; Civil liberties (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:85:y:2023:i:pa:s0301420723003483

DOI: 10.1016/j.resourpol.2023.103637

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