Resources extraction and geopolitical risk: A novel perspective of World's biggest economies

Fei Wang and Xiaoyan Liu

Resources Policy, 2023, vol. 85, issue PA

Abstract: During the last three decades, the issue of the nexus between natural resource extraction and economic growth is still unresolved. Due to conflicting evidence regarding natural resources' role in economic development and the absence of empirical assessment concerning geopolitical risk, this study examines the nexus between these variables in the World's largest economies from 1989 to 2021. This study used panel diagnostic tests to validate the non-normal distribution, slope heterogeneity, and cross-section dependence. Three cointegration estimators validate the long-run equilibrium relationship between the study variables. Using the non-parametric approach, this study found that natural resource extraction, geopolitical risk, and financial development boost these economies' economic growth and performance throughout quantiles. In contrast, the findings validate renewable energy consumption's adverse influence on economic growth across quantiles. The bootstrap quantile regression authenticates the empirical findings as a robust panel estimator. This study suggests efficient extraction and utilization of natural resources, improved financial sector, and reduced geopolitical risk to accelerate economic performance and growth. Also, this study recommends further investment in research and development to enhance renewable production and its efficient consumption.

Keywords: Geopolitical risk; Renewable energy; Natural resources extraction; Economic growth; Financial development; Resources rents (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723004282
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:85:y:2023:i:pa:s0301420723004282

DOI: 10.1016/j.resourpol.2023.103717

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 ().