We hypothesize that natural resource revenues may deteriorate contract enforcement if political institutions are weak. As poor contract enforcement leads to low financial development, resource ...revenues may hinder financial development in countries with poor political institutions, but not in countries with comparatively better political institutions. We provide empirical support for this hypothesis based on within-country variation in our sample covering the period 1970–2005 and 133 countries. Our results are robust to the use of additional control variables, different samples, and alternative measures of financial development and political institutions.
The role of financial development, natural resources and ecological efficiency has generated many attractive avenues for scholarly research, but only few studies have evaluated the coupling ...coordination degree of natural resources, financial development and ecological efficiency in China from regional perspective. Taking a natural and socio-economic dynamics into accounts, this study explores the coupling coordination degree of natural resources, financial development and ecological efficiency using the data of three Chinese regions i.e. Eastern, Central and Western region from 2006 to 2018. We employed entropy weight method and coupling coordination degree evaluation method for data analysis. The findings of the study show that the financial development of the central and western regions was higher than that of the eastern region. Secondly, although the eastern region lacks natural resources, but its resource utilization efficiency is high. In contrast, the central and western regions are rich in resources, but the utilization efficiency is low. It shows that the regions with relatively backward economic development are over-reliant on natural resources. Thirdly, the ecological efficiency in the central region is lower than that in the eastern region, but it is larger than that in the western region. Finally, the study concludes with some policy implications.
•Entropy weight method and coupling coordination method used.•Financial development of the eastern region is lower than other regions.•Resources utilization efficiency of the eastern region is high compared with other regions.•Ecological efficiency in the central region is lower than other regions.
The interaction between the abundance of natural resources and environmental depletion has significant ecological consequences. Nonetheless, this area is not adequately studied, and numerous results ...are apparent throughout the literature. For massive economic development, it is vital to recognize the role of human capital, urbanization, and natural resources. Hence it is important to consider various factors that can play a constructive role in environmental sustainability. Therefore, this study investigates the relationship between total natural resources (TNR), gross domestic product (GDP), human capital index (HCI) and urbanization (URB) with ecological footprint (EFP) in Pakistan from 1980 to 2018. The research uses the latest versions of dynamic Autoregressive Distributed Lag (ARDL) simulations model. The key benefit of dynamic ARDL is to estimate positive and negative shifts between the selected variables with an immediate visual illustration over the short and long period. In addition, the Kernel-based Regularized Least Squares (KRLS) machine learning method is used to test robustness. The results show that the rise in TNR has a long-term detrimental influence on EFP. However, upsurge in GDP and HCI increases EFP in the long-term. Lastly, URB observed an important and detrimental long-term impact on the EFP. The KRLS also support the hypothesis. This study suggest a policies to the planners and government officials for managing rapid urbanization and minimizing its urban, environmental and economic challenges.
•Examined the natural resources, GDP, human capital, and urbanization with ecological footprint in Pakistan.•Employed a modified dynamic ARDL simulations approach and KRLS model.•Empirical findings showing that natural resources decrease ecological footprint.•Urbanization decreases ecological footprint significantly.•The human capital and GDP increase ecological footprint substantially.
The advent of digital technologies has revolutionized our society, rendering businesses more efficient across various sectors. While this digital integration has fostered new business models and ...propelled economic growth, it is crucial to reflect on its implications for society and the environment. With the urgency of climate change looming over us, organizations are compelled to prioritize sustainable computing technologies that minimize their carbon footprint. By nurturing an innovation culture with a sustainability focus, digital transformation can lead us toward a more sustainable and equitable future.
This paper examines the link between financial development and economic growth in Pakistan by considering important role of natural resources in production function for the period of 1972–2017. ...Capital and labour are additional contributing factors of economic growth. To determine the integrating properties of the variables, we apply SOR unit root test containing information for sharp and smooth structural breaks in the series. We also employ the bootstrapping ARDL bounds testing approach to examine the cointegration between the factors of production. The causal relationship between financial development, natural resources, capital, labour and economic growth is tested by applying the VECM Granger causality test in the presence of structural breaks.
The empirical findings indicate that financial development, natural resources, capital, labour and economic growth are cointegrated for long-run association. Additionally, financial development enhances domestic production as well as economic growth. Natural resources as blessings hypothesis is validated. Capital and labour also add to economic growth. The VECM Granger causality test results show the bidirectional causal relationship between financial development and economic growth. The feedback effect also exists between natural resources and economic growth. This paper helps policy makers in designing a comprehensive policy for strengthening finance-growth by using natural resources as an economic tool.
•The role of natural resources in finance-growth nexus is analyzed using bootstrap ARDL modelling.•Annual data for Pakistan over the 1972–2017 period are used.•Financial development, natural resources, capital, labour and economic growth are cointegrated for long-run association.•Financial development enhances domestic production in Pakistan.•The feedback also exists between natural resources and economic growth.
Many historical processes exhibit recurrent patterns of change. Century-long periods of population expansion come before long periods of stagnation and decline; the dynamics of prices mirror ...population oscillations; and states go through strong expansionist phases followed by periods of state failure, endemic sociopolitical instability, and territorial loss. Peter Turchin and Sergey Nefedov explore the dynamics and causal connections between such demographic, economic, and political variables in agrarian societies and offer detailed explanations for these long-term oscillations--what the authors call secular cycles.
Green innovation has been positioned as an effective way to balance economic development and environmental governance. However, the impact of green innovation (i.e., innovation relating to the ...environmentally sound technologies (ESTs)) on carbon emission performance in a large developing country, such as China, has been paid little attention. This paper investigates the impact of green innovation on carbon emission performance based on a panel data set covering 218 prefecture-level cities in China from 2007 to 2013. First, we examine whether heterogeneous green innovations have a synergistic effect on carbon emission performance using the two-way fixed effect model, instrumental variable method, and spatial econometric model. Moreover, using a causal mediation effect model, we identify four kinds of potential transmission channels of green innovation affecting carbon emission performance: energy consumption structure effect, industrial structure effect, urbanization effect, and foreign direct investment (FDI) effect. The results indicate a positive effect of green innovation and its sub-categories on carbon emission performance in China. However, a noteworthy phenomenon is that direct carbon emission-reduction innovation and green administrative innovation have a weaker effect on carbon emission performance than other kinds of green innovations. In addition, the positive effect has an evident heterogeneity in different kinds of cities. To be specific, green innovation has an evident positive impact on carbon emission performance in key cities for environmental protection, resource-based cities, non-resource-based cities, and central cities. Meanwhile, a “snowball” effect and a symbiotic effect of carbon emission performance exist in local cities and between cities, respectively. Finally, we find that green innovation significantly decreases and increases carbon emission performance through industrial structure effect and FDI effect, respectively.
•We investigate the impact of heterogeneous green innovations on carbon emission performance in China.•We use a panel data set covering China's 218 prefecture-level cities over 2007–2013.•Instrumental variable method and spatial econometric model are employed.•We find a positive effect of heterogeneous green innovations on carbon emission performance in China.•Green innovation improves carbon emission performance through some mediation effects.
The purpose of this research is to show the regional gap, spatial pattern, and the trend evolution of China's green finance development. Based on provincial data from 2010 to 2019, we construct a ...policy- and market-oriented green financial development index system with the help of a local green financial development index and assessment report in 2019 and then calculate the green financial development index by using time and space ranges via the entry-weight method. We further employ Dagum's Gini coefficient decomposition method, Kernel density estimation, Markov chain, and spatial Markov chain, presenting results that first show that the overall development index of green finance in China is on the rise, but its overall level is not high. Second, the overall regional gap is on the decline, and the inter-regional gap is the main source of the development gap of green finance in the country. Third, the development of green finance shows a polarization trend, characterized by a ladder distribution of initially east China, central China, west China, and then northeast China. Finally, the development of green finance in China shows a club convergence phenomenon. This revelation of the evolution trend and source of the development gap of China's green finance provide a basis for narrowing this gap and for promoting the coordinated development of green finance in China's economic regions.
•Show the regional gap, spatial pattern, and the trend evolution of China's green finance development.•The overall development index of green finance in China is on the rise, but its overall level is not high.•The development of green finance in China shows a club convergence phenomenon.•The inter-regional gap is the main source of the development gap of green finance in the country.
•Tropical cyclones and fluvial floods have significant negative impacts on economic growth in the long run.•Development cannot protect against economic growth losses from tropical ...cyclones.•Development can prevent economic growth losses from fluvial floods.•Rising household consumption and government expenditure are the main growth-loss mitigating channels.•Rising investment is the main growth-loss amplifying channel.
While the short-term economic impacts of extreme weather events are well documented, little is known about their impacts and transmission channels on economic growth in the long run. Using panel data regressions and national shares of people exposed to tropical cyclones and fluvial floods as exogenous predictors, we find output growth losses from severe tropical cyclones and fluvial floods to accumulate to −6.5% and −5.0% over 15 years, respectively. We further observe a strongly non-linear increase of these losses with disaster intensity. To understand how the observed impacts depend on the countries’ development level, we implement a country-specific regression framework. While we find evidence that higher development can prevent economic growth losses from fluvial floods, this is not the case for tropical cyclones. Further, we systematically study the economic and non-economic transmission channels through which these events impact on economic growth in the long run. We find that rising household consumption and government expenditure are the main growth-loss mitigating channels, whereas rising investment is the main growth-loss amplifying channel in the period 1971–2010.
The objective of this study is to discover the relationship between natural resources, gross capital formation, energy consumption and economic growth. In addition, the study also emphasizes on ...exploring whether financial openness can change the resource curse into a blessing. Using quarterly data from 1990Q1 to 2018Q4, the study used structural equation modeling technique for the empirical analysis. The conclusions of study indicated the negative relationship of natural resources with economic growth which confirms the existence of resource curse hypothesis. Although, renewable and non-renewable energy positively stimulate Pakistan's economic growth, but, the role of non-renewable energy toward economic growth is more strong compared with renewable energy. Financial openness also stimulates economic growth positively. However, the results for the influence of gross capital formation on economic growth were insignificant. The comprehensive assessment of the empirical examination of the role of financial openness in changing the resource curse into blessing indicated that financial openness doesn't have capability to change the resource curse into a blessing. The in depth analysis put-forward key guide lines for policy formation to efficiently utilize the natural resources in the country.
•The study used structural equation modeling technique.•Resource curse hypothesis has been verified in the context of Pakistan.•Financial openness doesn't have capability to change the curse into a blessing.•Energy consumption positively reinforce economic growth in Pakistan.
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