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World uncertainty, natural resources, consumer prices, and financial development in high-income countries

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  • Hussain, Muzzammil
  • Bashir, Adnan
  • Wang, Chen
  • Wang, Yiwen

Abstract

In this uncertain world, every economy is facing challenges to achieve sustainable development with available resources. Ample research has explored the nexus of natural resources and financial development. However, world uncertainty and financial development's nexus are uncommon in literature. Therefore, this study is planned to re-investigate the nexus of natural resource rents and financial development by recruiting world uncertainty, human capital, and consumer price index. Theoretically, the natural resource curse hypothesis is being followed. To empirically estimate the linkages, “the Method of Moments Quantile Regression (MMQR)” and “Bootstrap Quantile Regression (BSQR)” are employed. Findings report the negative role of world uncertainty with the existence of the natural resource curse. Whereases, human capital, and consumer prices are found to support for financial development in high-income countries. High-income economies are suggested to invest more in human capital and plan to minimize uncertainty in the long-run. Findings have robust policy implications.

Suggested Citation

  • Hussain, Muzzammil & Bashir, Adnan & Wang, Chen & Wang, Yiwen, 2023. "World uncertainty, natural resources, consumer prices, and financial development in high-income countries," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000107
    DOI: 10.1016/j.resourpol.2023.103302
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