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From Resource curse to digital economy Harmony in selected Belt and Road countries

Author

Listed:
  • Wang, Lihong
  • Huang, Jinglei
  • Wang, Chunyan

Abstract

This study explores how the digital economy affects the resource curse in Belt and Road Initiative (BRI) countries. Using data from 27 BRI nations (2001–2020) and fixed effect panel data analysis, we find that increased digital access and technology imports reduce resource dependency. Specifically, a 1% rise in computers per 100 inhabitants correlates with a 0.17% decrease in oil rent, indicating digital access aids economic diversification. Conversely, a 1% increase in internet access tariffs leads to a 0.29% rise in oil rent, impeding diversification. Additionally, a 1% increase in ICT goods imports results in a 0.64% decrease in oil rent. Positive coefficients for electricity consumption and population size suggest intensified resource curse effects. We recommend policies to enhance digital accessibility and technology imports, improve electricity infrastructure, and promote renewable energy sources to mitigate the resource curse in BRI countries.

Suggested Citation

  • Wang, Lihong & Huang, Jinglei & Wang, Chunyan, 2024. "From Resource curse to digital economy Harmony in selected Belt and Road countries," Resources Policy, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:jrpoli:v:97:y:2024:i:c:s0301420724006494
    DOI: 10.1016/j.resourpol.2024.105282
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    More about this item

    Keywords

    Resource curse phenomenon; Digital economy; Oil rent; ICT devices imports; BRI;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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