IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i23p10571-d1535222.html
   My bibliography  Save this article

Examining the Impact of Tungsten Production on China’s Economic Growth: Evidence for the Resource Curse Hypothesis

Author

Listed:
  • M. Selman Saglam

    (Department of Economics, Faculty of Political Sciences, Çanakkale Onsekiz Mart University, 17100 Çanakkale, Turkey)

  • Veli Yilanci

    (Department of Economics, Faculty of Political Sciences, Çanakkale Onsekiz Mart University, 17100 Çanakkale, Turkey)

  • Ahmet Tunc

    (Department of Political Science and Public Administration, Faculty of Political Sciences, Çanakkale Onsekiz Mart University, 17100 Çanakkale, Turkey)

  • Merve Mert Saritas

    (Department of Economics, Faculty of Political Sciences, Çanakkale Onsekiz Mart University, 17100 Çanakkale, Turkey)

Abstract

This study investigates the potential impact of China’s dominant position in global tungsten production on its national economic growth, examining the applicability of the resource curse hypothesis. While prior research has extensively explored the resource curse in relation to oil and other resources, the role of tungsten remains largely unexplored. Utilizing annual data from 1994 to 2022, this study employs an autoregressive distributed lag (ARDL) bounds testing approach to analyze the long-run relationship between per capita income from tungsten production and per capita GDP. The results reveal a significant negative relationship, suggesting that the increased income from tungsten production may be associated with a decline in overall economic output, supporting the resource curse hypothesis. The study contributes to the growing body of the literature on the resource curse by investigating the unique case of tungsten and highlighting the importance of sustainable resource management, diversification, and effective governance in maximizing economic benefits while mitigating potential downsides.

Suggested Citation

  • M. Selman Saglam & Veli Yilanci & Ahmet Tunc & Merve Mert Saritas, 2024. "Examining the Impact of Tungsten Production on China’s Economic Growth: Evidence for the Resource Curse Hypothesis," Sustainability, MDPI, vol. 16(23), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10571-:d:1535222
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/23/10571/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/23/10571/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wenyi Zhang & Chen Yang & Lijinhong Huang & Zekai Wang & Chaocong Zeng & Junzhen Zhu & Wanfu Huang, 2024. "A Study on the Performance of Self-Leveling Mortar Utilizing Tungsten Tailings as the Aggregate," Sustainability, MDPI, vol. 16(13), pages 1-19, June.
    2. Moradbeigi, Maryam & Law, Siong Hook, 2017. "The role of financial development in the oil-growth nexus," Resources Policy, Elsevier, vol. 53(C), pages 164-172.
    3. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    4. Ozcan, Burcu & Temiz, Mehmet & Gültekin Tarla, Esma, 2023. "The resource curse phenomenon in the case of precious metals: A panel evidence from top 19 exporting countries," Resources Policy, Elsevier, vol. 81(C).
    5. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    6. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    7. Jia, Nanfei & Pi, Zhengrong & Zuo, Min & Liu, Donghui & An, Haizhong & Wang, Jialiang, 2024. "Structural evolution and the influence mechanism of the global embedded tungsten value flow networks: The perspective of value chain and technological progress," Resources Policy, Elsevier, vol. 91(C).
    8. Kegomoditswe Koitsiwe & Tsuyoshi Adachi, 2015. "Relationship between mining revenue, government consumption, exchange rate and economic growth in Botswana," Contaduría y Administración, Accounting and Management, vol. 60(5), pages 133-148, Octubre-D.
    9. Olayungbo, D.O., 2019. "Effects of oil export revenue on economic growth in Nigeria: A time varying analysis of resource curse," Resources Policy, Elsevier, vol. 64(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ben-Salha, Ousama & Dachraoui, Hajer & Sebri, Maamar, 2021. "Natural resource rents and economic growth in the top resource-abundant countries: A PMG estimation," Resources Policy, Elsevier, vol. 74(C).
    2. Roy, Arup, 2024. "Impacts of economic development, globalization, and gross capital formation on natural resources rents: Evidence from India," Resources Policy, Elsevier, vol. 97(C).
    3. Yilanci, Veli & Aslan, Murat & Ozgur, Onder, 2021. "Disaggregated analysis of the curse of natural resources in most natural resource-abundant countries," Resources Policy, Elsevier, vol. 71(C).
    4. Syed, Qasim Raza & Durani, Farah & Kisswani, Khalid M. & Alola, Andrew Adewale & Siddiqui, Aaliyah & Anwar, Ahsan, 2024. "Testing natural resource curse hypothesis amidst geopolitical risk: Global evidence using novel Fourier augmented ARDL approach," Resources Policy, Elsevier, vol. 88(C).
    5. Muhammad Atif Khan & Muhammad Asif Khan & Kishwar Ali & József Popp & Judit Oláh, 2020. "Natural Resource Rent and Finance: The Moderation Role of Institutions," Sustainability, MDPI, vol. 12(9), pages 1-23, May.
    6. Muhammad Shahbaz & Mohammad Ali Aboutorabi & Farzaneh Ahmadian Yazdi, 2024. "Foreign Capital, Natural Resource Rents and Financial Development: A New Approach," Global Business Review, International Management Institute, vol. 25(2), pages 401-420, April.
    7. Ali, Adnan & Ramakrishnan, Suresh & Faisal,, 2022. "Financial development and natural resources. Is there a stock market resource curse?," Resources Policy, Elsevier, vol. 75(C).
    8. Erdoğan, Seyfettin & Yıldırım, Durmuş Çağrı & Gedikli, Ayfer, 2020. "Natural resource abundance, financial development and economic growth: An investigation on Next-11 countries," Resources Policy, Elsevier, vol. 65(C).
    9. Mamoudou Camara, 2023. "Bauxite mining and economic growth in Guinea over the period 1986–2020: empirical evidence from ARDL and NARDL approaches," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 157-179, January.
    10. Ampofo, Gideon Kwaku Minua & Cheng, Jinhua & Asante, Daniel Akwasi & Bosah, Philip, 2020. "Total natural resource rents, trade openness and economic growth in the top mineral-rich countries: New evidence from nonlinear and asymmetric analysis," Resources Policy, Elsevier, vol. 68(C).
    11. Shahbaz, Muhammad & Naeem, Muhammad & Ahad, Muhammad & Tahir, Iqbal, 2018. "Is natural resource abundance a stimulus for financial development in the USA?," Resources Policy, Elsevier, vol. 55(C), pages 223-232.
    12. Ruba A. Aljarallah & Andrew Angus, 2020. "Dilemma of Natural Resource Abundance: A Case Study of Kuwait," SAGE Open, , vol. 10(1), pages 21582440198, January.
    13. Solarin, Sakiru Adebola, 2020. "The effects of shale oil production, capital and labour on economic growth in the United States: A maximum likelihood analysis of the resource curse hypothesis," Resources Policy, Elsevier, vol. 68(C).
    14. Gideon Minua Kwaku Ampofo & Prosper Basommi Laari & Emmanuel Opoku Ware & Williams Shaw, 2023. "Further investigation of the total natural resource rents and economic growth nexus in resource-abundant sub-Saharan African countries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 97-121, January.
    15. Dell’Anno, Roberto, 2020. "Reconciling empirics on the political economy of the resource curse hypothesis. Evidence from long-run relationships between resource dependence, democracy and economic growth in Iran," Resources Policy, Elsevier, vol. 68(C).
    16. Bildirici, Melike E. & Gokmenoglu, Seyit M., 2020. "Precious metal abundance and economic growth: Evidence from top precious metal producer countries," Resources Policy, Elsevier, vol. 65(C).
    17. Bin Amin, Sakib & Taghizadeh-Hesary, Farhad & Khan, Farhan & Manal Rahman, Faria, 2024. "Does technology have a lead or lag role in economic growth? The case of selected resource-rich and resource-scarce countries," Resources Policy, Elsevier, vol. 89(C).
    18. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    19. Satti, Saqlain Latif & Farooq, Abdul & Loganathan, Nanthakumar & Shahbaz, Muhammad, 2014. "Empirical evidence on the resource curse hypothesis in oil abundant economy," Economic Modelling, Elsevier, vol. 42(C), pages 421-429.
    20. Achuo, Elvis & Nchofoung, Tii & Asongu, Simplice & Dinga, Gildas, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," MPRA Paper 111556, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:16:y:2024:i:23:p:10571-:d:1535222. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.