Addressing resource curse: How mineral resources influence industrial structure dynamics of the BRI 57 oil-exporting countries

Tufail Muhammad, Guohua Ni, Zhenling Chen, Sabrine Mallek, Marek Dudek and Grzegorz Mentel

Resources Policy, 2024, vol. 99, issue C

Abstract: This study explores the impact of oil resource abundance on industrial structure in 57 oil-exporting countries within the Belt and Road Initiative (BRI) from 1990 to 2020. Using the System Generalized Method of Moments (SYS-GMM) models, the research highlights a negative correlation between oil exports and industrial structure dimensions. Countries such as Algeria, Angola, Azerbaijan, Chad, Congo, Iraq, and Libya are particularly affected by the resource curse, facing slower industrial development, while China, Lithuania, Malaysia, and New Zealand demonstrate resilience and positive industrial outcomes. The study also shows that oil abundance influences foreign direct investment (FDI), though this influx does not consistently translate into industrial growth. Policymakers are advised to implement strategies that balance oil revenue management, promote industrial diversification, and align education spending with industry needs. Trade openness is also emphasized as key to fostering industrial progress. These findings offer critical guidance for addressing the resource curse and achieving long-term sustainable industrial growth.

Keywords: Belt and road initiative; Oil-exporting countries; Industrial structure; Natural resource abundance; Industrial structure upgrading; Mineral resources; BRI (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:99:y:2024:i:c:s0301420724007876

DOI: 10.1016/j.resourpol.2024.105420

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