Exacerbating effect of energy prices on resource curse: Can research and development be a mitigating factor?
Semih Soran and
Xiaoguang Yue ()
Resources Policy, 2020, vol. 67, issue C
This study investigates the impact of natural resources in the presence of research and development and energy prices on the improvement of financial development for the Group of Seven (G7) economies for the period of 1990–2017. In doing so, the study employs a cross-sectional dependence test, Westerlund cointegration approach, and Common Correlated Effect Mean Group methods. Moreover, for robustness checks, this study uses cross-sectionally augmented ARDL (CS-ARDL) and augmented mean group (AMG) tests. Unlike previous studies, our study uses a multidimensional approach to financial development, which captures the performance, accessibility, and depth of both financial institutions and markets. The outcomes indicate that natural resource abundance for G-7 countries helps expand financial development. In contrast, rising energy prices adversely affect the expansion of financial development. However, research and development expenditures increase financial development. From the empirical findings, this study suggests the promotion of research and development expenditures, control the increasing energy prices to further benefit from the abundance of natural resources in G-7 economies.
Keywords: Financial development; Natural resources; Research and development; Energy prices; G-7 countries (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:67:y:2020:i:c:s0301420720302221
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 ().