 The role of the natural resource abundance in the short and long run: The case of the Kingdom of Saudi ArabiaKorhan K. Gokmenoglu and Bezhan Rustamov Resources Policy, 2022, vol. 77, issue C Abstract: This study investigates the impact of the natural resources abundance on financial development in the Kingdom of Saudi Arabia for the period of 1970–2017. We also consider economic growth, education, and capital formation in the finance demand function model. The Zivot and Andrews (2002) and Narayan and Popp (2013) unit root tests that take into account one and two structural breaks confirm that the independent variables are integrated of mixed orders. The Bayer and Hanck (2013) combined cointegration methodology and the autoregressive distributed lag bounds testing (Pesaran et al., 2001) verify the existence of the long-run association between natural resource abundance and financial development. Our findings show that natural resource abundance has a detrimental effect on financial development in the long run which can be mitigated by enhanced human capital. These findings have important policy implications which are discussed in the conclusion section of this article. Keywords: Natural resources; Financial development; Education; Capital formation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:77:y:2022:i:c:s0301420722001477 DOI: 10.1016/j.resourpol.2022.102699 Access Statistics for this article Resources Policy is currently edited by R. G. Eggert More articles in Resources Policy from Elsevier |
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