JOURNAL OF NATURAL RESOURCES ›› 2015, Vol. 30 ›› Issue (12): 1982-1993.doi: 10.11849/zrzyxb.2015.12.002

Previous Articles     Next Articles

Natural Resources and Economic Growth: Based on the Threshold Effect of Financial Development

LIU Yao-bina, HUANG Meng-yuana, BAI Cai-quanb   

  1. a. School of Economics and Management, b. School of Sciences, Nanchang University, Nanchang 330031, China
  • Received:2014-11-14 Revised:2015-04-17 Online:2015-12-15 Published:2015-12-15

Abstract: “Resource curse” is a classic hypothesis in economics, but the impact of financial development on “resource curse” is always ignored. This paper reveals that financial development threshold exists in the “resource curse” through theoretical level, using Hansen threshold model based on the panel data of China 's 31 provinces over the period of 1996-2012. There is evidence that inter provincial “resource curse” does exist in China; a threshold of financial development exists in economic growth, namely the development of the financial sector before and after the threshold 1.6352 has significant different impact on economic growth; household consumption and government expenditure have impact on the financial industry significantly; physical capital investment is still the important factor that affects China 's economic growth. Therefore, stimulating local consumption, increasing government expendi-ture and investing in physical capital can improve the development level of regional financial industry, when the financial development is over the threshold, natural resource can effectively promote economic growth through the optimal configuration of the financial sector, so that can effectively alleviate the “resource curse” phenomenon, and promote economic growth.

Key words: financial development threshold, economic growth, resource curse

CLC Number: 

  • F062.1