Energy exploitation and economic growth in Western China: An empirical analysis based on the resource curse hypothesis

Shuai Shao and Zhongying Qi
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Zhongying Qi: School of Management, Harbin Institute of Technology, Harbin 150001, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2009, vol. 4, issue 1, 125-152

Abstract: Based on resource curse hypothesis, this paper carries out an econometric analysis on the relationship and its transmission mechanism between energy exploitation and economic growth with cross-province panel data over 1991¨C2006. Results reveal that there is the significantly negative correlation between energy exploitation and economic growth, which indicates since the 1990s, the resource curse effect from energy exploitation has appeared evidently; though, before the implementation of the Western development strategy, energy exploitation acted negatively on opening degree, S&T innovation and human capital input, the effect was yet uncreated. However, after the implementation of the strategy, the effect emerged evidently as a result of the enhanced negative effect of energy exploitation on S&T innovation and human capital input. Moreover, further tests indicate that energy exploitation impeded economic growth mainly through three indirect transmission channels: The crowding-out effect towards human capital input and S&T innovation, and the weakening of institution aroused by rent-seeking and corruption. And among them, human capital input is the strongest transmission factor.

Keywords: energy exploitation; economic growth; resource curse; transmission mechanism (search for similar items in EconPapers)
JEL-codes: O13 O18 Q32 Q38 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (36)

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Journal Article: Energy exploitation and economic growth in Western China: An empirical analysis based on the resource curse hypothesis (2009)
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