Does technology have a lead or lag role in economic growth? The case of selected resource-rich and resource-scarce countries

Sakib Bin Amin, Farhad Taghizadeh-Hesary, Farhan Khan and Faria Manal Rahman

Resources Policy, 2024, vol. 89, issue C

Abstract: This paper's main aim is to analyse the linkage between technology and Long-Run (LR) Economic Growth (EG) in the context of selected countries with and without abundant natural resources, considering a balanced panel dataset from 1994 to 2019. We find the existence of cross-sectional dependence across the total and split samples of resource-rich and resource-scarce countries. Given the high persistence of cross-sectional dependence, we apply the second-generation Durbin-Hausman cointegration test and find that the variables from the proposed models across samples indicate cointegrated relationships in the LR. We use the second-generation dynamically improvised Cross-Sectional Distributed Lag (CS-DL) method for the LR estimations. We reveal that there is a significant growth dynamics heterogeneity between and within resource-rich and resource-scarce cohorts. Countries within each cohort have been progressing regarding the technological impact in the LR EG due to their respective development stages, behavioural patterns, and group-specific economic structural aspects. However, we find evidence of the resource curse symptom between sub-cohorts since the impact of technology on LR EG is greater in sub-cohorts that have limited resources. We also provide a few useful recommendations, such as improving human capital for better adaption of technology and institutional reforms in resource-rich countries.

Keywords: Economic growth; Technology; Resource curse; Resource-rich countries; Resource-poor countries; Institutions; Refroms (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420723012692
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:89:y:2024:i:c:s0301420723012692

DOI: 10.1016/j.resourpol.2023.104558

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 ().