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Does volatility in natural resources commodity prices and economic performance matter for RCEP economies?

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  • Liu, Li
  • Yu, Deng

Abstract

Recently, volatility in the prices of natural resources has become an international issue that needs researchers’ attention. Thus, the current research investigates the impact of economic growth in the RCEP countries on the volatility of natural resource rents. The research paper has focused on eight countries of this region, including Brunei, Cambodia, Laos, Singapore, Thailand, Vietnam, China, and Japan, using data from 1981 to 2020 and employing the autoregressive distributed lag (ARDL) cointegration approach. The researcher has found that economic growth impacts both the natural resources and their volatility. This study found strong evidence for the positive and statistical relationship between these two variables in Cambodia, China, Japan, Singapore, and Thailand. However, the researcher did not find significant relationships in the context of Brunei, Laos, and Vietnam. This study provides implications for policymakers and practitioners to modify the policies for natural resource rents. Furthermore, countries with an insignificant impact of economic growth on natural resource rents should be scrutinized to understand the positive points in their policies.

Suggested Citation

  • Liu, Li & Yu, Deng, 2023. "Does volatility in natural resources commodity prices and economic performance matter for RCEP economies?," Resources Policy, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:jrpoli:v:80:y:2023:i:c:s0301420722006663
    DOI: 10.1016/j.resourpol.2022.103223
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