{"title":"The Dual Faces of growth: Linear and non-linear effects of industrialization, financial development and natural resource rents on China's economy","authors":"Xiaoli Zhang , Maaz Ahmad , Xiao Gu","doi":"10.1016/j.resourpol.2024.105179","DOIUrl":null,"url":null,"abstract":"<div><p>The literature on driving indicators of economic growth shows diverse findings and commonly derives symmetric relationships. The current research aims to observe the linear and non-linear influence of primary indicators of interest. The results reveal that industrial value-added positively, while urbanization negatively influences China's short and long-term economic growth. Conversely, natural resource rents exhibit no immediate positive effect but contribute to long-term economic growth. A positive change in industrial value and financial development enhances economic growth with a more profound positive shock in the short and long run. Simultaneously, their negative change reduces the economic growth in China. Whether positive or negative, fluctuations in natural resource rents contribute to economic growth, waving the asymmetric dynamic in the short and long run. Further, urbanization boosts economic expansion during negative shocks but lacks significance during positive shocks in both short and long runs. Moreover, the frequency domain causation approves the structural transformation. In the same scenario, notable discrepancies in wavelet decomposition show significant fluctuations across all series, contributing to economic growth. To boost both immediate and sustained economic growth, investing in industries focused on value addition and refining urban planning to balance growth between megacities and smaller emerging urban areas is essential.</p></div>","PeriodicalId":20970,"journal":{"name":"Resources Policy","volume":null,"pages":null},"PeriodicalIF":10.2000,"publicationDate":"2024-07-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Resources Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0301420724005464","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"N/A","JCRName":"ENVIRONMENTAL STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
The literature on driving indicators of economic growth shows diverse findings and commonly derives symmetric relationships. The current research aims to observe the linear and non-linear influence of primary indicators of interest. The results reveal that industrial value-added positively, while urbanization negatively influences China's short and long-term economic growth. Conversely, natural resource rents exhibit no immediate positive effect but contribute to long-term economic growth. A positive change in industrial value and financial development enhances economic growth with a more profound positive shock in the short and long run. Simultaneously, their negative change reduces the economic growth in China. Whether positive or negative, fluctuations in natural resource rents contribute to economic growth, waving the asymmetric dynamic in the short and long run. Further, urbanization boosts economic expansion during negative shocks but lacks significance during positive shocks in both short and long runs. Moreover, the frequency domain causation approves the structural transformation. In the same scenario, notable discrepancies in wavelet decomposition show significant fluctuations across all series, contributing to economic growth. To boost both immediate and sustained economic growth, investing in industries focused on value addition and refining urban planning to balance growth between megacities and smaller emerging urban areas is essential.
期刊介绍:
Resources Policy is an international journal focused on the economics and policy aspects of mineral and fossil fuel extraction, production, and utilization. It targets individuals in academia, government, and industry. The journal seeks original research submissions analyzing public policy, economics, social science, geography, and finance in the fields of mining, non-fuel minerals, energy minerals, fossil fuels, and metals. Mineral economics topics covered include mineral market analysis, price analysis, project evaluation, mining and sustainable development, mineral resource rents, resource curse, mineral wealth and corruption, mineral taxation and regulation, strategic minerals and their supply, and the impact of mineral development on local communities and indigenous populations. The journal specifically excludes papers with agriculture, forestry, or fisheries as their primary focus.