The Dynamic Role of Socioeconomic Transmission Mechanism of Natural Resources to Achieve Sustainable Growth in Developing Economies

Abstract

The influence of natural resources to achieve sustainable growth has been emphasized by the Sustainable Development Goals. Therefore, it becomes essential to study the socioeconomic transmission mechanism of natural resources by focusing the Resource Curse Hypothesis. Current research investigates the presence or absence of the Resource Curse Hypothesis in developing economies. The study applies Panel Quantile Autoregressive Distributed Lag estimation technique for analyzing data of 57 developing countries covering the time duration of 2000-2021. The empirical outcome of the study confirms the existence of the Resource Curse Hypothesis in developing economies. The impact of the macroeconomic stability index is negative and significant indicating poor macroeconomic conditions. The policies to control macroeconomic volatilities, sufficient food provision, good health, and enhanced well-being may help to improve overall outcomes.