Natural resources volatility and economic growth: evidence from the resource-rich region

Arshad Hayat () and Muhammad Tahir

MPRA Paper from University Library of Munich, Germany

Abstract: This research paper investigates the impact of natural resources’ volatility on economic growth. The paper focused on three resources rich economies namely; UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach developed by Pesaran, Shin, and Smith (2001), we found that both natural resources and their volatility matters from the growth perspective. The study found strong evidence in favor of a positive and statistically significant relationship between the natural resource and economic growth for the economy of UAE and Saudi Arabia. Similarly, for the economy of Oman, a positive but insignificant relationship is observed between natural resources and economic growth. However, we found that the volatility of natural resources has a statistically significant negative impact on the economic growth of all three economies. This study contradicts the traditional concept of resources curse and provides evidence of resources curse in the form of a negative impact of volatility on economic growth.

Keywords: Natural Resources; Volatility; Economic Growth; ARDL Modeling; GCC (search for similar items in EconPapers)
JEL-codes: O4 Q33 (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-ara, nep-ene, nep-env, nep-gro and nep-war
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/92293/1/MPRA_paper_92293.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/98772/1/MPRA_paper_98772.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/106229/1/MPRA_paper_98772.pdf revised version (application/pdf)

Related works:
Journal Article: Natural Resources Volatility and Economic Growth: Evidence from the Resource-Rich Region (2021)
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:pra:mprapa:92293

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().