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Energy exploitation and economic growth in Western China: An empirical analysis based on the resource curse hypothesis

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  • Shuai Shao
  • Zhongying Qi

Abstract

Based on resource curse hypothesis, this paper carries out an econometric analysis on the relationship and its transmission mechanism between energy exploitation and economic growth with cross-province panel data over 1991¨C2006. Results reveal that there is the significantly negative correlation between energy exploitation and economic growth, which indicates since the 1990s, the resource curse effect from energy exploitation has appeared evidently; though, before the implementation of the Western development strategy, energy exploitation acted negatively on opening degree, S&T innovation and human capital input, the effect was yet uncreated. However, after the implementation of the strategy, the effect emerged evidently as a result of the enhanced negative effect of energy exploitation on S&T innovation and human capital input. Moreover, further tests indicate that energy exploitation impeded economic growth mainly through three indirect transmission channels: The crowding-out effect towards human capital input and S&T innovation, and the weakening of institution aroused by rent-seeking and corruption. And among them, human capital input is the strongest transmission factor.
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Suggested Citation

  • Shuai Shao & Zhongying Qi, 2009. "Energy exploitation and economic growth in Western China: An empirical analysis based on the resource curse hypothesis," Frontiers of Economics in China, Springer;Higher Education Press, vol. 4(1), pages 125-152, March.
    • Handle: RePEc:spr:frecch:v:4:y:2009:i:1:p:125-152
    DOI: 10.1007/s11459-009-0008-1
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    More about this item

    Keywords

    能源开发; 经济增长; 资源诅咒; 传导机制; energy exploitation; economic growth; resource curse; transmission mechanism; O130; O180; Q320; Q430;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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