Abstract
Promoting inclusive finance is crucial for governments worldwide to drive inclusive economic growth and development. This study investigates the relationship between natural resource rent and inclusive finance, considering the role of institutional quality. Using a comprehensive dataset spanning 109 countries from 1996 to 2020, our research unveils novel insights in the field of inclusive finance. The findings from our fixed-effect regression and two-stage least squares regression analysis reveal that natural resource rent has a significant negative impact on inclusive finance, supporting the resource curse theory. Moreover, we observe that the effect of natural resource rent on inclusive finance is contingent upon the level of institutional quality. Specifically, in the presence of robust institutions, there is a positive association between natural resource rent and inclusive finance. However, in weaker institutional context, the relationship becomes negative. These findings withstand a series of robustness tests, underscoring their reliability. These findings also have significant policy implications for stakeholders and policymakers involved in promoting inclusive finance in resource-rich economies.
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Notes
Natural resource stocks measure the net present value of natural resources under the ground, in constant 2014 US dollars. Data are available for every fifth year since 1995, and we use averaged per capita resource stock over the full period to maximize country coverage. The data are taken from World Bank’s Wealth Accounts database.
On the basis of WGI ranking.
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This research was supported by 2022 Scientific Research Capacity Improvement Project of Key Construction Subject of Department of Education of Guangdong Province (Fund no. 2022ZDJS37).
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JY contributed to conception and design of the study. JY and XL organized the database, performed the statistical analysis, and wrote the first draft of the manuscript. JY and XL wrote various sections of the manuscript. XL received the funding. NZ was responsible for the supervision. All authors who contributed to the manuscript approved the submitted version.
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Li, X., Yang, J. & Zeng, N. Natural resource rent and inclusive finance: an institutional perspective. Econ Change Restruct 57, 45 (2024). https://doi.org/10.1007/s10644-024-09593-1
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DOI: https://doi.org/10.1007/s10644-024-09593-1