Resource rich yet debt ridden: The role of natural resources and debt servicing in sustainable economic growth

Jingquan Chen, Wanying Ma, Bilal Kchouri and Samuel Ribeiro-Navarrete

Resources Policy, 2024, vol. 89, issue C

Abstract: Many studies are available on the relationship between natural resources, economic growth, and sustainable development; however, studies on the influence of debt servicing and its role in sustainable economic growth in poor economies are missing. This study explores the influence of natural resources and debt servicing on the economic growth of highly indebted poor economies between 1988 and 2021, including the role of renewable electricity output. Various time-series approaches were employed, including unit root tests (ADF with and without break years, DF-GLS) and Bayer-Hanck cointegration. The empirical evidence indicates a positive contribution of natural resource rents, like natural gas and coal, to economic growth. Preliminary findings were offered by utilizing FMOLS, DOLS, and CCR, and to ascertain the precision, robustness techniques varied from parametric to nonparametric analyses were employed. Conversely, renewable electricity output reduces long-term economic growth. These outcomes were confirmed by robust regression analysis, structural breaks, simple least squares, and quantile regression. The research provides policy implications for the prudent use of external debts, natural resources, and renewable electricity output for sustainable economic growth.

Keywords: Natural resources; Economic performance; Total debt servicing; Poor economies; FMOLS (search for similar items in EconPapers)
Date: 2024
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/S030142072301276X
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:s030142072301276x

DOI: 10.1016/j.resourpol.2023.104565

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 ().