Quantile on Quantile Analysis of Natural resources-growth and geopolitical risk trilemma

Yan Kong, Chuntong Dong and Yingyu Zhang

Resources Policy, 2023, vol. 85, issue PA

Abstract: The prevailing literature delivers contradictory evidence vis-à-vis the empirical association between economic growth and natural resources and geopolitical risk. Regarding, the current study re-evaluate the nexus between these variables in China throughout 1985M1-2022M4. Using the Bayer-Hanck combined cointegration test, the variables are found cointegrated. Due asymmetrical data distribution, this study employed the novel Quantile-on-Quantile regression and explores the optimistic impact of natural resources on economic growth. Hence, this study validates the resource-growth assumption in the country. On the other hand, the predicted results asserted that geopolitical risk has a mixed influence on economic growth. The positive and negative impacts are evident in medium and “lower and upper” quantiles, respectively. Further, this research acknowledged the two-way causal association between the study variables. Based on the empirics, this research recommends the sustainable extraction and use of natural resources and the stability of political and economic risks in the country.

Keywords: Natural resources; Geopolitical risk; Economic growth; Quantile-on-Quantile; China (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723006463
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:s0301420723006463

DOI: 10.1016/j.resourpol.2023.103935

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 ().