Could political stability and the availability of resources have an impact on economic development? What we can learn about South Asian economies

Zakia Batool (), Abdul Rehman, Sajjad Ali () and Ilhan Ozturk ()
Additional contact information
Zakia Batool: Quaid-e-Azam University
Sajjad Ali: School of Economics, Quaid-e-Azam University
Ilhan Ozturk: College of Business Administration, University of Sharjah

Economia Politica: Journal of Analytical and Institutional Economics, 2025, vol. 42, issue 3, No 10, 875-896

Abstract: Abstract Exploitation is inevitable when using the Earth’s natural resources to produce goods and services. The role of natural resources in generating economic growth might vary, either favourably or adversely, depending on the circumstances. Essentially, natural resources can help or inhibit growth and development. Participating in excessive rent-seeking activities may result in poor governance, which leads to the Nigerian disease. Inefficiency in resource utilization exacerbates the circumstances. The goal of this research is to assess the prevalence of Nigerian disease in South Asia and investigate how political stability and resource rents can work together to reduce the negative consequences of the resource curse. The Panel QARDL (Quantile Autoregressive Distributed Lag) approach was used to data ranging from 1980 to 2020. The interaction effect emphasizes the importance of politically stable economies in minimizing the negative consequences of the resource curse. The findings indicate that political stability is an important factor in economic development. This study claims that by allocating resources efficiently and maintaining a stable political climate, rent-seeking behavior and corruption can be reduced, allowing the region to overcome the negative repercussions of the resource curse.

Keywords: Resources rent; Economic progress; Political stability; Nigerian disease; Panel QARDL (search for similar items in EconPapers)
JEL-codes: C23 J21 O1 Q34 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s40888-025-00371-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:epolit:v:42:y:2025:i:3:d:10.1007_s40888-025-00371-4

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40888

DOI: 10.1007/s40888-025-00371-4

Access Statistics for this article

Economia Politica: Journal of Analytical and Institutional Economics is currently edited by Alberto Quadrio Curzio

More articles in Economia Politica: Journal of Analytical and Institutional Economics from Springer, Fondazione Edison
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().