Do natural resources impact economic growth: An investigation of P5+1 countries under sustainable management

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F24%3A101523" target="_blank" >RIV/60460709:41110/24:101523 - isvavai.cz</a>

Result on the web

<a href="https://www.sciencedirect.com/science/article/pii/S1674987123000622" target="_blank" >https://www.sciencedirect.com/science/article/pii/S1674987123000622</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.gsf.2023.101595" target="_blank" >10.1016/j.gsf.2023.101595</a>

Result language

angličtina

Original language name

Do natural resources impact economic growth: An investigation of P5+1 countries under sustainable management

Original language description

Natural resources represent the base of our living and the entire economic activity. Their depletion is a major challenge for the economic development of both developed and developing economies. Their efficient use is an indispensable requirement and must be the aim of the public policies designed by the authorities worldwide. In this research, we have investigated the impact of the natural resources rent on the economic growth in some major wealthy economies of the world (P5 + 1 countries namely: US, UK, France, China, Russia, and Germany). We have applied a quantile-on-quantile regression to analyse this impact on different quantiles and a cross-sectional autoregressive distributed lag (CS-ARDL) approach for the panel of these six countries. The Dumitrescu-Hurlin panel causality test was also used to check the causality between natural resource rents and economic growth in these countries. Results show a negative relationship between natural resources rent and economic growth for the panel but a different impact on quantiles in each country. Only for China and the US, a positive effect can be noticed for both lower and higher quantiles of natural resources and economic growth. The Dumitrescu-Hurlin causality test shows that natural resources can predict economic growth only in China, the U.S., and the panel. In contrast, no causality was found for the other four countries included in the panel. We suggest that nations invest in wind and solar projects, use biofuels and nuclear energy, introduce a temporary profit tax to protect consumers from escalating energy prices, and increase energy efficiency in buildings and industry. Businesses would benefit from a regulatory framework that is uniform and exhaustive, as well as easier to traverse and more receptive to innovation and creativity. Public-private partnership investments in innovation, innovation incentives, and environmental sector opportunities may foster long-term economic growth.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Geoscience Frontiers

ISSN

1674-9871

e-ISSN

1674-9871

Volume of the periodical

15

Issue of the periodical within the volume

3

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

17

Pages from-to

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UT code for WoS article

001221370200001

EID of the result in the Scopus database

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