The Nexus Between Natural Resources, Renewable Energy and Economic Growth in the Gulf Cooperation Council Countries

Jamal Alnsour () and Farah Mohammad AlNsour
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Jamal Alnsour: Department of Logistics Sciences, Business School, German Jordanian University, Amman 11180, Jordan
Farah Mohammad AlNsour: Department of Banking and Financial Sciences, The Faculty of Business, Jerash University, Jerash 26150, Jordan

Resources, 2025, vol. 14, issue 8, 1-20

Abstract: In sustainable development studies, a key question is how the abundance of natural resources influences long-run economic growth. However, there is no consensus on this issue. Some literature suggests a negative impact, while other studies find no effect at all, and other research indicates a positive impact. This study aims to examine the relationship between natural resource rents, renewable energy, and economic growth in the Gulf Cooperation Council (GCC) countries over the period from 1990 to 2023. The study utilizes the Method of Moments Quantile Regression (MMQR) to provide reliable findings across different quantiles. We also incorporate a series of control variables, including capital, labor force participation, non-renewable energy, and trade openness. The findings indicate that natural resources rent enhances economic growth in GCC countries, supporting the Rostow hypothesis. Although renewable energy has a positive impact on economic growth, it does not have an effect on natural resource rents. Additionally, capital, labor force participation, non-renewable energy, and trade openness play a critical role in raising economic growth in these countries. Based on the empirical results, this study provides several valuable recommendations for policymakers to enhance the management of natural resources in GCC countries.

Keywords: economic growth; natural resources; renewable energy; GCC countries (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2025
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