EconPapers    
Economics at your fingertips  
 

Role of natural resource abundance, international trade and financial development in the economic development of selected countries

Trumel Redmond and Muhammad Ali Nasir ()

Resources Policy, 2020, vol. 66, issue C

Abstract: Economic development in a contemporary setting encompasses a broad range of parameters. This balanced panel study of 30 countries uses two single-equation models to investigate the impacts of natural resource abundance, international trade, financial development, trade openness and institutional quality on two proxies for economic development – economic growth and a human development index. The data spans from 1990 to 2016 and the impact is assessed in aggregate as well as the countries' level of development in three groups – Lower-middle, Upper-middle and High Income Countries. Four panel estimation approaches are used: Fixed Effects (FE), Random Effects (RE), Panel Fully Modified Least Squares (FMOLS) and Panel Dynamic Least Squares (DOLS). While natural resource abundance has a significantly positive impact on economic growth, a primarily negative and insignificant effect on human development exists. Interestingly, international trade and broad money have significantly negative impacts on economic development. Trade openness’ positive effect exceeds that of institutional quality. The findings suggest that the variables have a stronger influence on economic growth as compared to human development.

Keywords: Natural resource abundance; International trade; Financial development; Trade openness; Institutional quality; Economic development; Economic growth; Human development (search for similar items in EconPapers)
JEL-codes: E02 E44 F1 F4 F14 F41 F43 F63 Q01 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S030142071930950X
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:66:y:2020:i:c:s030142071930950x

DOI: 10.1016/j.resourpol.2020.101591

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 Haili He ().

 
Page updated 2021-01-14
Handle: RePEc:eee:jrpoli:v:66:y:2020:i:c:s030142071930950x