Role of natural resource and mineral rent on economic development: Perspective on green reforms and financial management

Chengying Yang, Xing Xin, Xuetao Li and Liang Li

Resources Policy, 2024, vol. 95, issue C

Abstract: This study aims to establish an empirical framework to determine the role of total natural resource rent and forest rent in financial development and to shed light on the perspective of green growth and technological advancement by using time-series data between 1990 and 2022 in the context of Chile. According to econometric testing, Technological Innovation (0.31) and Total Natural Resource Rent (0.02) positively affect financial development. However, the coefficient of forest rent (−0.06) has a negative and significant impact on Chile's financial development. Energy from renewable sources (−0.69)in Chile negatively impacts green growth, whereas trade openness increases green growth. In Chile, wavelet coherence analysis revealed a high correlation between financial development, green reforms, technological innovation, and carbon emission. The study suggested that, first, policymakers should carefully evaluate the forest management techniqueas studies have shown the adverse effect of forest rent on financial development. Second, encouraging renewable energy resources and guaranteeing ongoing economic developmentaccording to the detrimental impact of renewable energy on green growth should be balanced. Last, capacity building at different levels should be invested in to implement policies regarding natural resources.

Keywords: Financial development; Natural resources; Forest rent; Green growth; Total natural resource rent; Technological advancement (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:95:y:2024:i:c:s0301420724005488

DOI: 10.1016/j.resourpol.2024.105181

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