Resource Price Fluctuations, Resource Dependence and Sustainable Growth

Hua Wang, Shi Wang, Cheng-Fu Yang, Sheng-Nan Jiang and Yun-Juan Li
Additional contact information
Hua Wang: School of Foreign Studies, Xi’an Jiaotong University, Xi’an 710049, China
Shi Wang: School of Economics and Finance, Xi’an International Studies University, Xi’an 710128, China
Cheng-Fu Yang: Department of Chemical and Materials Engineering, National University of Kaohsiung, No. 700, Kaohsiung University Rd. Nan-Tzu District, Kaohsiung 811, Taiwan
Sheng-Nan Jiang: School of Foreign Studies, Xi’an Jiaotong University, Xi’an 710049, China
Yun-Juan Li: School of Foreign Studies, Xi’an Jiaotong University, Xi’an 710049, China

Sustainability, 2019, vol. 11, issue 22, 1-13

Abstract: The previous literature on the resource curse has not taken resource price fluctuations into account. Using panel data covering the period from 1993 to 2017 from 28 provinces in China and dynamic generalized method of moments (GMM), this article takes a fresh look at the relationship between resource dependence and sustainable economic growth and the potential transmission mechanisms taking resource price fluctuations into consideration. We find that resource price fluctuations represent an important factor when researching the resource curse, and there is a U-shaped relationship between resource dependence and sustainable economic growth. However, over the past 20 years, provinces in China remained on the left of the U-shaped curve, and there is a single negative correlation between resource dependence and sustainable economic growth. This means that resource curse occurs in nearly all provinces in China. The analysis of transmission mechanisms of indirect effects taking resource price fluctuations into consideration shows that human capital investment and physical capital investment are more important than other mechanisms, and there are considerably more indirect effects than direct effects when taking into account the total effects of the resource curse.

Keywords: resource price fluctuations; resource curse; sustainable growth (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/2071-1050/11/22/6371/pdf (application/pdf)
https://www.mdpi.com/2071-1050/11/22/6371/ (text/html)

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:gam:jsusta:v:11:y:2019:i:22:p:6371-:d:286425

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().