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Journal : Economics, Business, Accounting

Blessing or Burden? Rethinking Natural Resources and Economic Growth in Emerging Markets Sari, Meliana; Yulianita, Anna; Bashir, Abdul
Economics, Business, Accounting & Society Review Vol. 4 No. 1 (2025): Economics, Business, Accounting & Society Review
Publisher : International Ecsis Association

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55980/ebasr.v4i1.200

Abstract

Rapid globalization, environmental shifts, and economic volatility have renewed interest in growth drivers of emerging economies. This study investigates the long-run and short-run impacts of natural resources, financial development, and trade openness on economic growth in emerging market economies. Using a quantitative approach and panel data spanning from 1997 to 2021, the research covers ten emerging countries: Brazil, Russia, India, China, South Africa, Argentina, Indonesia, Mexico, Poland, and Turkey. Data were sourced from the World Bank, and the Autoregressive Distributed Lag (ARDL) model was employed to examine both short- and long-term dynamics. The empirical results reveal that natural resource rents negatively and significantly affect economic growth in both time horizons, indicating the persistence of the resource curse in these economies. Conversely, financial development and trade openness exhibit positive and significant effects on economic growth over the long and short run. The presence of cointegration confirms a stable long-run relationship among the variables. This study contributes to the literature by providing robust cross-country panel evidence supporting the notion that institutional and policy frameworks are critical in transforming natural resource wealth into sustainable growth. The findings imply that emerging markets must strengthen financial systems and pursue trade liberalization while implementing more effective governance of natural resources to mitigate their negative externalities and unlock long-term growth potential.
Co-Authors ABDUL BASHIR, ABDUL ABRIANO, NOVA Abubakar, Rafeah Abubakar, Rafeah Ahmed, Shakib Ahsanal Kasasiah Alvinesar , Muhammad Habib Amalina Amalina, Amalina Amiruddin Amiruddin Andriani, Lia Anna Yulianita Aristi, Dela Astuti , Rahayu Azizah Azizah Azizah, Faiha Bambang Wispriyono Cahyani, Aprilia Dwi Camila, Putri Data, Mulya Rahman Desnawita, Desnawita Dwi Wahyuni Fatma Nabila, Dinda Ferifina, Liska Fety Fathimah Firdaus Firdaus Gusmita, Deri Husni, Suci Nisaul Idris, T Indah Puspita Sari, Indah Puspita Isa, Yamanto Ismandela, Afriyane Iswarini, Harniatun Iting Shofwati Jhoni Warmansyah Kadir Naffari, Abdul Khairunnisa Khodarsih, Delma Komalasari, Elis Latif, Nurdin Masril Masril Mastanora, Refika Meida, Hafsah Murti, Firda Aulya mutiara mutiara Nabila, Dinda Fatma Nabila, Putri Nova Yulia Nurazizah, Diyah Ayu Nurhasanah Nurhasanah Nurlaila Nurlaila Pérez, Carlos Pramudita, Arif Saiful Pusaka, Semerdanta Putri Wahyu, Widia Putri Yanti, Elsa Putri, Anis Putri, Hafifa Putri, Irawati Anindya Putri, Santi Virdaus Putri, Widya Rahmadani, Widia Rahmadina, Sabrina Rahman Data, Mulia Restu Yuningsih Retno Wulandari Safna, Aisyah Salsabila, Dhiva Sanniyah, Zahra Satriani Satriani Saufika, Alka Sinuraya, Bachtiar Siregar, Rahayu Yandira Siregar, Rahayu Yandira S Solin, Saobil Sobri Soniati, Soniati Syaharra, Salsya Iffana Tri Yuliani, Tri Trimelia Utami, Winda Urrahmah, Nisa Utami, Winda Trimelia Wahidah Fitriani WIJAYA, JOHAN EKA Wiliani, Sherly Wiliany, Sherly Wiska Bela, Sandora Wulandari, Tiara Yandira S Siregar, Rahayu Yandira, Rahayu YUNIARTI, SETIAFITRIE Yusmar, Sherly Aini Zalzabila, Zakiah