Breaking the resource curse for sustainable growth and transforming rural economies

Mu He and Sisi Chen

Resources Policy, 2024, vol. 90, issue C

Abstract: In this extensive study, we investigate the complex interplay between the resource curse and sustainable development in rural areas across G7 economies from 2000 to 2021. Our findings reveal that even a slight uptick in the Resource Curse Vulnerability Index (RCVI) triggers a notable 0.36 % decline in the Rural Sustainable Development Index. These results align with prior research, emphasizing the detrimental impact of the resource curse. Moreover, a 1 % increase in the rural population correlates with a significant 0.17 % reduction in the Rural Sustainable Development Index, shedding light on challenges associated with population growth. The study identifies positive drivers for sustainable development, including increased internet use, expanded electricity access, and effective land management. Proposed policy measures advocate for diversifying rural economies, ensuring equitable access to essential services, and implementing environmental conservation initiatives to tackle resource curse challenges and promote rural sustainability.

Keywords: Resource curse; Rural sustainable development; Green economic growth; Natural resource depletion; Rural electrification (search for similar items in EconPapers)
JEL-codes: O13 Q01 Q34 Q40 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:90:y:2024:i:c:s0301420724000977

DOI: 10.1016/j.resourpol.2024.104730

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