Natural resource curse: Mediating effects of fiscal policy

IF 5.5 2区经济学 Q1 ECONOMICS

Structural Change and Economic Dynamics Pub Date : 2025-09-22 DOI:10.1016/j.strueco.2025.08.012

Linus Nyiwul , Zhining Hu , Niraj P. Koirala

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引用次数: 0

Abstract

The ‘resource curse’ literature has predominantly focused on identifying causes and channels of the ‘curse’, while literature on how to mitigate it remains largely at the theoretical or analytical level. In this paper, we examine the role of fiscal policy in mitigating the negative effect of natural resource dependence on economic growth. Using a sample of 150 countries for the period of 1990-2021, we apply a panel instrumental variable (IV) estimation to identify the nature of the relationship between economic growth, resource dependence, and fiscal policy. We then apply a panel structural vector autoregression (SVAR) model to examine the dynamics of this relationship. Our results yield a nuanced picture: while expansionary fiscal policy can mitigate the negative effect of resource dependence, it also entails adverse consequences, particularly a reduction in economic growth, which partially offset its benefits. These findings are robust across five different measurements of natural resource dependence and are further corroborated by the panel SVAR analysis.

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自然资源诅咒：财政政策的中介效应

“资源诅咒”的文献主要集中在确定“诅咒”的原因和渠道，而关于如何减轻它的文献主要停留在理论或分析层面。本文考察了财政政策在缓解自然资源依赖对经济增长的负面影响方面的作用。利用1990-2021年150个国家的样本，我们采用面板工具变量（IV）估计来确定经济增长、资源依赖和财政政策之间关系的性质。然后，我们应用面板结构向量自回归（SVAR）模型来检查这种关系的动态。我们的研究结果得出了一个微妙的结论：虽然扩张性财政政策可以减轻资源依赖的负面影响，但它也带来了不利后果，特别是经济增长的放缓，这在一定程度上抵消了其好处。这些发现在自然资源依赖的五种不同测量中都是稳健的，并得到小组SVAR分析的进一步证实。

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

Structural Change and Economic Dynamics ECONOMICS-

CiteScore

9.60

自引率

4.90%

发文量

159

期刊介绍： Structural Change and Economic Dynamics publishes articles about theoretical, applied and methodological aspects of structural change in economic systems. The journal publishes work analysing dynamics and structural breaks in economic, technological, behavioural and institutional patterns.