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What role financial development and resource-curse situation play in inclusive growth of Asian countries

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  • Pham, Thi Ha An
  • Lin, Chia-Yang
  • Moslehpour, Massoud
  • Vo, Thi Thuy Van
  • Nguyen, Hai-Tuan
  • Nguyen, Tran Thai Ha

Abstract

Various economists get to grips with this concept that natural resources are crucial part of economy. However, there exist a second opinion which raises a question on its role and argue that natural resource abundance does not always guarantee high inclusive growth. Thus, following the debate, the study develops the framework to assess the impact of financial development (FD), natural resource rents on the inclusive growth of the top ten GDP-producing Asian counties. By using CS-ARDL method, the output revealed that the financial development, natural resource rent, inclusive growth, inflation, and industrialization impact inclusive growth positively. It has also been exposed that inflation and population growth have a negative linkage with inclusive growth of selected Asian counties. The study guides the policymakers in making the policies regarding to achieve extensive inclusive growth using well development financial structures and effective natural resource allocation in the country.

Suggested Citation

  • Pham, Thi Ha An & Lin, Chia-Yang & Moslehpour, Massoud & Vo, Thi Thuy Van & Nguyen, Hai-Tuan & Nguyen, Tran Thai Ha, 2024. "What role financial development and resource-curse situation play in inclusive growth of Asian countries," Resources Policy, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:jrpoli:v:88:y:2024:i:c:s0301420723012096
    DOI: 10.1016/j.resourpol.2023.104498
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