Total natural resources, oil prices, and sustainable economic performance: Evidence from global data

Zhiping Sha

Resources Policy, 2022, vol. 79, issue C

Abstract: Natural resources are curses or blessings to economic performance, yielded contradictory results over the past few decades. This research objectivizes analyzing the nexus between total natural resources, crude oil prices, and economic performance over the extended period of 1960–2020 at a global level. This research uses time series specifications, including the stationarity test that validates the variables’ stationarity. Since the data possesses the characteristics of non-normal distribution, therefore, the novel Quantile-on-Quantile regression is utilized. The empirical results asserted that both natural resources and crude oil prices significantly but asymmetrically affect economic performance. In the lower quantiles, the impact of both variables is positive, but in the medium and higher quantiles, the influence reports a negative impact on economic performance. This validates the natural resource curse paradox at a global level. Also, the Granger causality test reveals a two-way causality connection between economic performance and natural resources, oil prices, and economic performance, and natural resources and oil prices. Based on the empirical outcomes, this study also provides appropriate policy implications.

Keywords: Natural resources; Crude oil prices; Economic performance; Quantile-on-quantile regression; Resource curse (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420722004895
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:79:y:2022:i:c:s0301420722004895

DOI: 10.1016/j.resourpol.2022.103046

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 ().