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We investigate the asymmetric effect of oil and gas resource rent on economic growth of Ghana for the period 2010 to 2019, dwelling on the hypothesis that natural resources extraction has double-edge effect on economic growth. Using Nonlinear Autoregressive Distributed Lag (NARDL) model as estimation strategy, we find that oil and gas resource rent affect economic growth asymmetrically. Specifically, our NARDL estimates suggest that oil resource rent promotes economic growth significantly, providing empirical evidence in support of the resource blessing hypothesis. However, gas resource rent exerts a significant adverse effect on economic growth, providing empirical evidence to support the resource curse hypothesis. Our findings point to the need for policies that promote the expansion of oil resources firms than gas resource firms in the short run while long term policies should target setting up both oil and gas resource firms in developing countries, especially countries with similar socioeconomic and demographic setting like Ghana. Finally, government and monetary authorities should promote policies that attract foreign direct investment inflow in Ghana while taming inflation and lending rate towards growth enhancing targets.

This paper examines the relationship between natural resource rents and new business formation (a critical measure of entrepreneurship) using a panel dataset of 28 African countries covering the period 2002–2014. The paper finds robust evidence that nations with high resource rents (i.e., resource rents exceeding 30% of GDP) significantly exhibit less entrepreneurial activity. This result is consistent with the hypothesis that high resource rents significantly promote rent-seeking behavior at the expense of entrepreneurship. Policies that reward productive entrepreneurship and reduce incentives for rent-seeking behavior are therefore important for reversing this negative relationship in African countries with high natural resourcederived income.

PurposeThe paper assesses the role of natural resource rents in Nigeria's economy through the channel of institutional quality.Design/methodology/approachThe analysis is done with the use of autoregressive-distributed lag (ARDL) bounds testing approach to cointegration, vector error correction model (VECM), Granger causality test and cointegrating regression over the period 1996–2019.FindingsFindings support the notion that overreliance on natural resources could exacerbate the growing number of dysfunctional economic outcomes in the country. The study confirms that a mix of weak governance quality and natural resource rents could have a negligible effect on economic growth and possible retardation impact on the economy in the long run as well as in the short run. The evidence further reveals that there is unidirectional causality running from the interaction term to growth, suggesting that growth trajectory could be jointly determined by natural resource rents and the quality of institutions.Originality/valueThe divergent arguments associated with the mechanisms of resource curse in each of the resource-rich countries offer ample support for the contention that economic outcomes in resource-abundant states may not be a product of resource windfalls per se, but rather the quality of governance or ownership structure. Hence, the ultimate aim of the analysis is to further understanding on the link between resource rents and growth in Nigeria via governance channel.

Utilizing natural resources wisely, reducing pollution, and taking other environmental factors into account are now critical to the prospects for long-term economic growth and, by extension, sustainable development. We investigate the impact of total natural resource rents (NRR) on India's GDP in this study. The data sample consists of NRR and GDP data from the World Bank's official website collected between 1993 and 2020. In the study, the Granger causality test and an augmented autoregressive distributed lag (ARDL) bound test were used. The NNR have a significant impact on India's GDP, according to the results of the ARDL model on the framed time series data set. Furthermore, the ARDL bound test reveals that the NRR have a significant short-term and long-term impact on the GDP of the Indian economy. This research contributes to understanding whether an exclusive policy is required for effective management of the complex interactions between various forces in the economic, political, and social environments. This is significant because there is no standard policy in India to improve the efficiency of utility extraction from natural resources.

There is a shred of evidence of environmental degradation in the form of carbon emissions to behave differently when tested with different macroeconomic variables. This paper aims to examine the long-run and short-run association between natural resource rent, financial development, and urbanization on carbon emission from the context of the USA during 1995–2015 with the help of a contemporary and innovative approach named quantile autoregressive distributed lagged model (QARDL). The stated approach is applied due to the fact that non-linearity is observed for the study variables. The findings indicated that the higher financial development (0.304), natural resource rent (0.102), and urbanization (0.489) have a positive impact on the environmental degradation in the region of USA during long-run estimation in the stated quantiles of the study. This would indicate that higher financial development, urbanization, and natural resources are putting more environmental pressure on the economy of the USA. Similarly, the findings under short-run estimation confirm that past and lagged values of carbon emission, financial development, natural resource rent, and urbanization are significantly determining the current values of the carbon emission. For this reason, it is suggested that the government requires some immediate steps of the USA to control the harmful effect of such financial development, more urbanization, and higher natural resource rent as well. This would indicate the reflection of some green strategies in all three explanatory variables to generate some fruitful environmental outcomes.

There is a close relationship between natural resources and production in many sectors, and production and consumption can also have an environmental impact. Low environmental quality affects economic growth and well-being. Environmental protection and economic growth cannot be maximized simultaneously. Choosing the right balance between the two aims is imperative for each country. By moderating the role of merchandise trade and manufacturing value-added from 1970 to 2016, we examine the dynamics of China’s natural resource rents, environmental sustainability, and sustainable economic growth. Overall, the results of this study indicate that natural resources improve environmental sustainability at the expense of economic growth. In contrast, financial development, merchandise trade, and urban population growth promote environmental degradation. It is vital to understand governance mechanisms to sustain natural resource policies, considering environmental, social, and governance concerns to benefit society.

The varied opinions on financial developmental impacts on growth in different economies have been the subject of considerable debates among economists during the last two decades, especially in natural-resource-rich countries. However, the role of financial development on a crucial channel of growth, i.e. social capital, has been neglected. Unlike previous studies, the level of income in resource-based economies has been considered an important factor influencing the way financial development affects social capital-resource rents’ interactions. Thus, in this paper, the impact of financial development as an infrastructure to turn natural capital into social capital has been investigated in two groups of resource-abundant countries using a panel data model during 2009:Q1-2016:Q4. The empirical results in the case of high-income economies show that a high level of financial development can ensure resource rents, positively influencing social capital. However, findings indicate an adverse impact of natural resource rents on social capital in mediumincome countries.

The United Nations Sustainable Development Goals (SDGs) 7, 11, and 12 are all aimed at advancing green energy consumption in the fight against the three planetary crises facing the world today: climate change, biodiversity loss, and pollution. Besides, Africa has an abundance of natural resources, yet, the continent continues to witness slow growth and development compared to its counterparts. Therefore, this study, the first of its kind, simultaneously assesses the impact of green energy consumption and natural resources rents on economic growth by applying the dynamic panel ARDL and the Feasible Generalized Least Square (FGLS) estimators on data from 1990 to 2020 for 24 selected African countries. The results show that green energy consumption has a short-run growth-limiting and a long-run growth-enhancing effect in Africa. Also, CO2 emissions have both short- and long-run significant positive impacts on economic growth, while fossil fuel combustion negatively impacts growth both in the short and long run, albeit the effect is not significant in the long run. Similarly, regarding Africa's natural resource rents' impact on growth, the results show that total natural resource rents are growth-enhancing in the short run and growth-limiting in the long run. Additionally, both forest and mineral rents have a significant short-run negative impact on growth in Africa. However, in the long run, only the effect of mineral rent is growth-enhancing although generally not statistically significant. These findings provide relevant implications for policy shifts to enhance environmental sustainability, achieve sustainable economic growth, and ensure proper natural resources management in Africa.

Currently, the most crucial economic and ecological issues are related to environmental degradation and sustainability. On this backdrop, this paper examines the impact of financial globalization and natural resource rent on load capacity factor, using the novel dual adjustment approach and time–frequency domain causality approaches, in the case of India. This study contributes to the extant body of knowledge in the area of environmental economics. First, it is the first attempt to analyze the factors responsible for load capacity factor, specifically for India. As such, studies on environmental concerns on both the supply and demand sides are put into consideration. Empirical results show that only renewable energy consumption lessens the load capacity factor, while economic growth and financial globalization are positively correlated with the load capacity factor, and natural resource rent is insignificant in the short run. In the long run, only economic growth is negatively correlated with load capacity factor, while the other series positively influence load capacity factor. To reap greater ecological merits, policymakers should focus on transitioning from conventional non-renewable energy sources that contribute to rising carbon emissions to more cost-effective and dependable renewable sources of energy that support sustainable growth and a healthy environment.

This study examines the dynamic disaggregated impacts of nonrenewable, resource rents, technology, human capital, and population on environmental quality in 41 Sub-Saharan African (SSA) countries. The empirical analyses are anchored on the two-step system-generalized method of moments for data spanning 1996–2018. The following results are established. First, the indicators of nonrenewable energy (oil, coal, and gas), natural resource rents (oilr, coalr, gasr, and mineral), and population (rural and urban) deter environmental quality. Second, diverging effects are evident in the case of human capital where four of its proxies (expenditure on primary and secondary education, and school enrollment in primary and secondary education) promote environmental quality while the two others (expenditure and school enrollment in tertiary education) deter it. Third, among the proxies of technology, imports of goods and services, and mobile cellular subscriptions promote environmental quality while exports of goods and services deter it. Fourth, the robustness checks performed with the consideration of ecological footprint as the outcome variable shows that environmental quality in SSA has its peculiarity as different measures respond differently to similar regressors. On the policy front, it is suggested that unflinching efforts should be made toward discontinuing the consumption of nonrenewable energy. Furthermore, human capital development should be planned and executed in a way that will promote environmental quality across all levels of education.