Journal Article10.1016/j.resourpol.2023.104214
How does economic complexity affect natural resource extraction in resource rich countries?
Shajara Ul-Durar,Noman Arshed,Awais Anwar,Arshian Sharif,Wei Liu +4 more
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TL;DR: This study examines the relationship between economic complexity, natural resource rent, and extraction in 20 resource-rich economies, finding a curvilinear inverse U-shaped relationship between economic complexity and natural resource rent, with implications for transitioning to clean energy and achieving SDGs.
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Abstract: Several studies debate whether natural resources benefit or hurt an economy. In natural resource-rich economies researchers cannot conclude it. This study examines the relationship between natural resource rent, economic complexity, clean technology, and natural resource productivity capacity in 20 resource-rich economies from 2000 to 2021. Coal, oil, minerals, natural gases, and forest rents are disaggregated in the study. The economic complexity curvilinear function illustrates the inverse U-shaped relationship under the environmental Kuznets curve (EKC) or the U-shaped relationship under load capacity curve (LCC) between economic complexity and natural resources rent. This study hypothesizes that economic complexity increases resource extraction curvilinearly, changing resource rents which may have implications in the transition towards clean energy under COP27 to achieve SDGs. The study shows the marginal effects of economic complexity at different levels of complexity and resource extraction using quadratic and quantile functions. This study first examines resource extraction quantiles. Economic complexity raises forest, coal, and mineral rents at low resource extraction. Economic complexity lowers forest, gas, oil, coal, and mineral rents at high resource extraction. This study describes the curvilinear function. At the median resource extraction level, economic complexity has an inverted U-shaped effect on forest, mineral, and coal rents and a U-shaped effect on gas and oil rents. This implies that an increase in economic complexity can be targeted which may reduce reliance on forests, minerals, and coal while reducing reliance on gas and oil, government effort, green technology, and productive capacity needed to be pursued.
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Citations
Enhancing natural resource rents through industrialization, technological innovation, and foreign capital in the OECD countries: Does financial development matter?
Michael Kusi Appiah,Mingxing Li,John Taden,Sania Ashraf,Aviral Kumar Tiwari,Prosper Basommi Laari +5 more
TL;DR: This study examines the impact of technological innovation, industrialization, foreign direct investment, and financial development on natural resource extraction in OECD countries from 1990 to 2021, finding mixed results on the relationship between innovation and resource extraction.
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The role of Fintech financing in correcting ecological problems caused by mineral resources: Testing the novel ecological deficit hypothesis
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FinTech adoption in achieving ecologically sustainable mineral management in Asian OBOR countries – A cross-section and time autoregressive robust analysis
TL;DR: This study examines FinTech's moderating effect on resource extraction sustainability in 27 Asian OBOR countries, finding that FinTech positively influences the relationship between resource rents and environmental performance, informing policymakers on policy effectiveness.
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FinTech and Economic Readiness: Institutional Navigation Amid Climate Risks
Shajara Ul‐Durar,Yassine Bakkar,Noman Arshed,Shabana Naveed,B Zhang +4 more
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Natural habitat vs human in competition for breathing space: Need for restructuring clean energy infrastructure
Noman Arshed,Aftab Anwar,Manzir Abbas,Waheed Mughal +3 more
TL;DR: This study examines the non-linear effects of clean energy on biodiversity, finding an inverted U-shaped relationship, and identifies optimal levels of green energy for different levels of diversity, highlighting the need for restructuring clean energy infrastructure to balance economic growth and environmental conservation.
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TL;DR: It is shown that it is possible to quantify the complexity of a country's economy by characterizing the structure of this bipartite network in which countries are connected to the products they export, and that deviations from this relationship are predictive of future growth.
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