Can financial development help alleviate the resource curse? Evidence from 286 cities in China

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2024-10-18 DOI:10.1016/j.iref.2024.103694

Ying Tian , Chao Feng

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引用次数: 0

Abstract

The resource curse adversely affects the sustainability of economic growth. A sound financial system helps improve capital rational allocation, which may be an effective path for alleviating the resource curse. Thus, from both theoretical and empirical perspectives, using Chinese 286 cities panel data from 2003 to 2018, this study examines the effects and potential mechanisms of financial development on the resource curse. For this purpose, a two–sector endogenous growth model is first constructed for the theoretical analysis, while panel vector autoregression, Hansen's threshold regression, and dynamic panel models are used for further empirical investigation. The results show that the resource curse is widespread across Chinese cities. Financial development can alleviate such a curse when it passes the threshold value; however, most cities have not passed this value yet. Foreign direct investment, education, and technology have a positive mediating effect on financial development and its impact on the resource curse.

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金融发展能否缓解资源诅咒？来自中国 286 个城市的证据

资源诅咒会对经济增长的可持续性产生不利影响。健全的金融体系有助于改善资本合理配置，可能是缓解资源诅咒的有效路径。因此，本研究从理论和实证两个角度，利用中国286个城市2003-2018年的面板数据，考察金融发展对资源诅咒的影响和潜在机制。为此，首先构建了两部门内生增长模型进行理论分析，同时采用面板向量自回归、汉森门槛回归和动态面板模型进行进一步实证研究。结果表明，资源诅咒在中国城市中普遍存在。当金融发展超过临界值时，资源诅咒会有所缓解，但大多数城市尚未超过这一临界值。外商直接投资、教育和技术对金融发展及其对资源诅咒的影响具有积极的中介效应。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.