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1 – 10 of over 20000Ibrahim Ayoade Adekunle, Olukayode Maku, Tolulope Williams, Judith Gbagidi and Emmanuel O. Ajike
With heterogeneous findings dominating the growth and natural resources relations, there is a need to explain the variances in Africa's growth process as induced by robust…
Abstract
Purpose
With heterogeneous findings dominating the growth and natural resources relations, there is a need to explain the variances in Africa's growth process as induced by robust measures of factor endowments. This study used a comprehensive set of data from the updated database of the World Bank to capture the heterogeneous dimensions of natural resource endowments on growth with a particular focus on establishing complementary evidence on the resource curse hypothesis in energy and environmental economics literature in Africa. These comprehensive data on oil rent, coal rent and forest rent could provide new and insightful evidence on obscure relations on the subject matter.
Design/methodology/approach
This paper considers the panel vector error correction model (PVECM) procedure to explain changes in economic growth outcomes as induced by oil rent, coal rent and forest rent. The consideration of the PVECM was premised on the panel unit root process that returns series that were cointegrated at the first-order differentials.
Findings
The paper found positive relations between oil rent, coal rent and economic development in Africa. Forest rent, on the other hand, is inversely related to economic growth in Africa. Trade and human capital are positively related to economic growth in Africa, while population growth is negatively associated with economic growth in Africa.
Research limitations/implications
Short-run policies should be tailored towards the stability of fiscal expenditure such that the objective of fiscal policy, which is to maintain the condition of full employment and economic stability and stabilise the rate of growth, can be optimised and sustained. By this, the resource curse will be averted and productive capacity will increase, leading to sustainable growth and development in Africa, where conditions for growth and development remain inadequately met.
Originality/value
The originality of this paper can be viewed from the strength of its arguments and methods adopted to address the questions raised in this paper. This study further illuminated age-long obscure relations in the literature of natural resource endowment and economic growth by taking a disaggregated approach to the component-by-component analysis of natural resources factors (the oil rent, coal rent and forest rent) and their corresponding influence on economic growth in Africa. This pattern remains underexplored mainly in previous literature on the subject. Many African countries are blessed with an abundance of these different natural resources in varying proportions. The misuse and mismanagement of these resources along various dimensions have been the core of the inclination towards the resource curse hypothesis in Africa. Knowing how growth conditions respond to changes in the depth of forest resources, oil resources and coal resources could be useful pointers in Africa's overall energy use and management. This study contributed to the literature on natural resource-induced growth dynamics by offering a generalisable conclusion as to why natural resource-abundance economies are prone to poor economic performance. This study further asks if mineral deposits are a source or reflection of ill growth and underdevelopment in African countries.
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Muhammad Tahir, Umar Burki and Arshad Hayat
This paper explores the relationship between natural resources and economic growth of Brunei Darussalam, an underresearched area in the available literature.
Abstract
Purpose
This paper explores the relationship between natural resources and economic growth of Brunei Darussalam, an underresearched area in the available literature.
Design/methodology/approach
Annual data are sourced from reliable sources for the period 1989–2020. Appropriate cointegration techniques for time series data are employed to estimate the specified models and extract results.
Findings
The results provide evidence about the positive and significant role that natural resources have played in the economic growth of Brunei Darussalam. Similarly, trade openness and domestic investment have also positively and significantly impacted the long-run economic growth. On the other hand, the impacts of government expenditure and the growth of human capital on economic growth are although positive but insignificant statistically in the long run. The short-run results show that natural resources, government expenditures and domestic investment have influenced economic growth both positively and significantly. Moreover, the positive and significant impact of trade openness on economic growth, which was observed in the long run, turned negative and insignificant in the short run. Finally, the insignificant positive relationship between the growth of human capital and economic growth observed in the long run remained the same in the short run.
Originality/value
This paper studies the resource curse hypothesis for Brunei Darussalam for the first time, and therefore, the findings will be of significant interest for policymakers and researchers.
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Olawale Daniel Akinyele, Olusola Mathew Oloba and Gisele Mah
African countries are endowed with both human and natural resources. These resources constitute integral components for any economic development due to the long-lasting…
Abstract
Purpose
African countries are endowed with both human and natural resources. These resources constitute integral components for any economic development due to the long-lasting relationship with all sectors in an economy, yet there is an obvious disagreement between growing economy and employment generation in Africa. Though there has been a growing pattern of economic size, particularly the gross domestic product (GDP) among African countries, most of these economies are low in human development. The disagreement between economic growth and employment generation in Africa despite abundant natural resources located on the continent calls for public discourse among scholars. Therefore, the purpose of the study is to examine the peculiar drivers of unemployment intensity in a region characterized by endowed resources.
Design/methodology/approach
The paper adopts two approaches; the authors employed the pooled mean group (PMG) estimator and utilised stochastic frontier analysis (SFA) to generate a government efficiency index between the period 1991 and 2017 among sub-Saharan Africa (SSA) countries.
Findings
The empirical results through the single output-multiple inputs framework indicate that on average, there is a low level of government efficiency towards increasing the objective of human development in Africa. However, in the long run, natural resource endowment has a positive and significant relationship with employment generation for SSA. Hence, the study established that a low level of government efficiency has a long-lasting effect on low human development experienced in Africa.
Social implications
The need to improve the level of government efficiency towards economic development by making both human and physical capital more effective will spur the exploration of natural resources.
Originality/value
The paper provides an empirical study of the effectiveness and efficiency of government through PMG and SFA in establishing the relationship between government approaches and employment level in selected SSA countries.
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Lukman Raimi, Lanre Ibrahim Ridwan and Rabiu Olowo
The study investigates the effects of energy resource efficiency on the triple themes of sustainable development (economic, social and environmental dimensions). We adopt a…
Abstract
The study investigates the effects of energy resource efficiency on the triple themes of sustainable development (economic, social and environmental dimensions). We adopt a quantitative research method, and the required macroeconomic data were extracted from World Development Indicators for a period of 30 years (1991–2020). The extracted data were analysed using correlation analysis and linear regression. Ultimately, the estimations from the three models produced mixed results. Energy resource efficiency (EFF) exerts a significant positive effect on economic sustainability (ECS), a significant negative effect on social sustainability (SOS) and a significant negative effect on environmental sustainability (EVS). However, claims on government (COG) exerted an insignificant negative effect on ECS, an insignificant negative effect on SOS and a significant positive effect on environmental sustainability (EVS). In practical terms, the findings are consistent with previous empirical studies, and they also validate X-efficiency theory (XET) and resource curse theory (RCT). The study concludes with implications, limitations and further research directions.
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This study aims to investigate the implications of natural gas rents and institutions as co-drivers of economic growth, focusing on the Gas Exporting Countries Forum (GECF) with…
Abstract
Purpose
This study aims to investigate the implications of natural gas rents and institutions as co-drivers of economic growth, focusing on the Gas Exporting Countries Forum (GECF) with panel data between 2001 and 2021.
Design/methodology/approach
This research paper uses a specialised two stage estimator, the panel instrumental variable technique (panel IV), which takes care of the potential endogeneity issues in the model.
Findings
The findings show that natural gas rent significantly impacts the economic growth of the GECF. On average, natural gas rent increases the sample’s growth rate by about 2.634% percentage points in the short run. The result indicates that the qualities of institutions (political and economic) have a significant positive long-term effect on the economies of the GECF. In addition, the study’s energy price volatility positively correlates with the countries’ growth.
Research limitations/implications
There might be a need to investigate the effects of natural gas rents and institutions as co-growth drivers in each country within the GECF. The likelihood exists that the impact of natural gas rents and institutions on economic growth at the country’s level may differ from the outcome of such an experiment on the group level. Because of space and time limitations, this study could not carry out the specific country’s investigation of natural gas rents and institutions as a co-growth driver. That limitation may constitute further study to advance this study to a new height.
Practical implications
With good institutions, natural gas rent is likely to be an alternative growth driver for some economies that rely on fossil fuels like oil as a growth driver. By extension, the GECF has the potential to rival Organisation of Petroleum Exporting Countries (OPEC) in the global energy market, particularly in achieving Sustainable Development Goal number seven. In essence, evidence in this study suggests that natural gas rent has long-term positive effects on the growth of the GECF, conditioned on good institutions. Moreover, the drive of global energy consumption towards sustainable energy usage is an economic blessing for the GECF. By extension, the demand for natural gas would continue to rise, creating opportunities to improve natural gas rents. By implication, the GECF would continue to benefit from the pursuit of sustainability as the world shifts towards energy consumption with less CO2.
Originality/value
Firstly, this study models the qualities of institutions for the GECF. Secondly, to the best of the author’s knowledge, this study is the first attempt to examine natural gas rents and the qualities of institutions as co-determinants of economic growth among the GECF (a potential cartel).
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Amrita Kulshreshtha, Sk Raju, Sai Manasa Muktineni and Devlina Chatterjee
The purpose of this study was to investigate the relationship between income shock suffered during the coronavirus pandemic and subsequent financial well-being (FWB) of Indian…
Abstract
Purpose
The purpose of this study was to investigate the relationship between income shock suffered during the coronavirus pandemic and subsequent financial well-being (FWB) of Indian adults, mediated by financial resilience (FR) and psychological resilience (PR).
Design/methodology/approach
The authors propose a conceptual model for the relationship between income shock and FWB, with FR and PR as mediator variables. The authors consider four dimensions of financial resilience: economic resources, financial inclusion, financial knowledge and social capital. This study uses a unidimensional scale for PR. Data were collected from 370 respondents from 11 cities across India. Structural equation models were built to test the proposed hypotheses.
Findings
Income shock was negatively associated with FWB. Estimated path coefficients for FR and PR were statistically significant and confirmed a mediating role. Among the four dimensions of financial resilience, only economic resources were positively associated with FWB. The mediation relation between economic resources and FWB was larger than PR.
Research limitations/implications
Since convenience sampling was used to collect data, the results of this study are indicative but not generalizable.
Social implications
For individuals who suffered income shocks during the pandemic, adequate economic resources are crucial for FWB. Governmental disbursements, personal savings and medical or life insurance could provide an adequate safety net.
Originality/value
There are no extant studies that examine the association between income shocks and FWB in the pandemic, and this study contributes to the literature.
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Sabri Burak Arzova and Bertaç Şakir Şahin
The purposes of this study are to contribute to the limited green growth (GG) literature in emerging markets, to analyze GG from a financial economy perspective and to determine…
Abstract
Purpose
The purposes of this study are to contribute to the limited green growth (GG) literature in emerging markets, to analyze GG from a financial economy perspective and to determine the contribution of financial development and innovation to GG in Brazil, Russian Federation, India, China and South Africa and Türkiye (BRICS-T). BRICS-T countries significantly impact the world population, international politics, energy resources and economy. In addition, BRICS-T countries are one of the leading countries in the world with their sustainability efforts. Investigating the GG model in these countries may contribute to structuring emerging economies around the principles of GG and advancing global green transformation efforts.
Design/methodology/approach
The authors applied panel data analysis from 2001 to 2019. GG is economic growth free from environmental depletion in the model. National income, personnel expenditure and foreign direct investments are macroeconomic variables. These variables measure economic development and promote economic and social progress, which is essential for GG. Capital accumulation and innovation are essential tools in GG transformation. Therefore, financial development and patent applications represent the moderating variables. The authors estimate the fixed effect model with Parks-Kmenta robust.
Findings
Empirical results show that national income growth and foreign direct investments positively affect GG. Personnel expenditure negatively affects GG. On the contrary, financial development and patent growth have little moderating role.
Originality/value
This study contributes to the literature on creating a GG model in emerging countries. The study is original in its model and sample.
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Hafas Furqani and Mohamed Aslam Haneef
This paper aims to investigate the subject matter of Islamic economics that will be the object of a study as a discipline by classifying and unifying different approaches proposed…
Abstract
Purpose
This paper aims to investigate the subject matter of Islamic economics that will be the object of a study as a discipline by classifying and unifying different approaches proposed by Islamic economists.
Design/methodology/approach
The paper is a conceptual paper using discursive analysis analysing the perspective and approaches proposed by Islamic economists in defining economic problems from an Islamic perspective. The perspective and approaches proposed are classified and analysed for their implications in constructing the subject matter of discipline.
Findings
Islamic economics, as a new body of knowledge, needs to clarify the economic problems that will be its subject matter. The paper brings an insight into the subject matter of Islamic economics as conceived by scholars in two approaches, namely, economic problems “as they are” and economic problems “as they should be”. The paper also proposes a unified perspective in defining the subject matter of Islamic economics for further development of the discipline.
Research limitations/implications
This paper only provides philosophical guidance for researchers in mapping the problems and the goals of the policy being studied, although it does not offer any practical use for policymaking as each policy is faced with different and specific cases. This paper may be used to assist future researchers in shaping other unexplored fields in Islamic economics as a body of knowledge.
Practical implications
Islamic economics as a discipline will be strengthened if it has a clear subject matter that will be the object of study. However, the conception of economic problems proposed by Islamic economists is based on life-reality, i.e. of what human beings face in their life (practical-type economic problems as they are) and based on life guidance from the Qur’an on how human beings should live as well as life-objectives, i.e. of what goals he should strive for (ideal-type economic problems as they ought to be) brings implication that there are differences in determining the object of study of Islamic economics.
Originality/value
This paper promotes the unification of two conceptions of economic problems proposed by scholars by defining Islamic economics as “a study of resource appropriation to realize human well-being (maslahah)”. This suggests that economic problems as manifested in life reality will be studied within the grand objective of life in Islam (maqasid al-Shariah), and economic problems as perceived in life goals will be studied in the context of life reality. Islamic economic theory will be formulated not only to solve the apparent problem of “what is” but also formulated in a way that refers to goals (ideals) of “what ought to be” that will provide solutions to current economic problems according to certain vision and to take steps to move in that visionary direction.
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Yanjiao Yang, Xiaohua Lin and Robert B. Anderson
Entrepreneurship by Indigenous people in Canada and Australia, while historically connected to the ancestral lands and traditional practices of Indigenous people, has been…
Abstract
Purpose
Entrepreneurship by Indigenous people in Canada and Australia, while historically connected to the ancestral lands and traditional practices of Indigenous people, has been evolving and expanding in scope and nature. In this article, the authors aim to offer an integrative framework for capturing the contemporary dynamics and outcomes of entrepreneurship by Indigenous people as they pursue venture creation as part of their broader development aspirations.
Design/methodology/approach
Drawing on literature from place-based views of entrepreneurship and social identity theory, the authors develop a typology to account for four modes of entrepreneurship by Indigenous people along two contextual dimensions – Indigenous territory and Indigenous marker.
Findings
Indigenous practicing entrepreneurship may choose to conduct business within or outside of traditional lands and demonstrate more or less indigeneity in their business activities as they marshal resources and seek opportunities. The authors identify how these diverse Indigenous businesses contribute to the economic development among Indigenous communities as part of their ongoing struggle to rebuild their “nations” using business.
Originality/value
This article contributes by differentiating sociocultural vs economic resources in noneconomic contexts to develop a theoretical typology of Indigenous entrepreneurship. By detailing the relations between Indigenous territories and Indigenous lands and between Indigenous identity and Indigenous markers, the authors contribute to a more nuanced and practical conceptualization of Indigenous entrepreneurship.
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