Natural Resources and Productivity: Can Banking Development Mitigate the Curse?
This paper contributes to the literature concerning the natural resource curse by exploring the role of banking development in reducing the resource curse in a natural resource-based country, Yemen. Using time series data over the period 1980–2012, we find that natural resource dependence is nega...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
MDPI
2017
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| Subjects: | |
| Online Access: | http://eprints.usm.my/37092/1/%28Natural_Resources_and_Productivity%29_economies-05-00011.pdf |
| _version_ | 1825833593781354496 |
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| author | Abubakr Badeeb, Ramez Hooi, Hooi Lean |
| author_facet | Abubakr Badeeb, Ramez Hooi, Hooi Lean |
| author_sort | Abubakr Badeeb, Ramez |
| collection | USM |
| description | This paper contributes to the literature concerning the natural resource curse by exploring
the role of banking development in reducing the resource curse in a natural resource-based
country, Yemen. Using time series data over the period 1980–2012, we find that natural resource
dependence is negatively related to productivity, and this relationship depends on the level of
banking development. Increasing this level reduces the negative consequences of the natural resource
curse. Therefore, policymakers should proactively encourage credit to enable the banking sector
to play a more efficient intermediary role in mobilizing domestic savings and channeling them to
productive investments. This will help to accumulate permanent productive wealth to enhance any
diversification effort and compensate for the decline in natural resource production. |
| first_indexed | 2024-03-06T15:10:09Z |
| format | Article |
| id | usm.eprints-37092 |
| institution | Universiti Sains Malaysia |
| language | English |
| last_indexed | 2024-03-06T15:10:09Z |
| publishDate | 2017 |
| publisher | MDPI |
| record_format | dspace |
| spelling | usm.eprints-370922017-10-12T08:54:10Z http://eprints.usm.my/37092/ Natural Resources and Productivity: Can Banking Development Mitigate the Curse? Abubakr Badeeb, Ramez Hooi, Hooi Lean H1-99 Social sciences (General) This paper contributes to the literature concerning the natural resource curse by exploring the role of banking development in reducing the resource curse in a natural resource-based country, Yemen. Using time series data over the period 1980–2012, we find that natural resource dependence is negatively related to productivity, and this relationship depends on the level of banking development. Increasing this level reduces the negative consequences of the natural resource curse. Therefore, policymakers should proactively encourage credit to enable the banking sector to play a more efficient intermediary role in mobilizing domestic savings and channeling them to productive investments. This will help to accumulate permanent productive wealth to enhance any diversification effort and compensate for the decline in natural resource production. MDPI 2017 Article PeerReviewed application/pdf en http://eprints.usm.my/37092/1/%28Natural_Resources_and_Productivity%29_economies-05-00011.pdf Abubakr Badeeb, Ramez and Hooi, Hooi Lean (2017) Natural Resources and Productivity: Can Banking Development Mitigate the Curse? Economies, 5 (11). pp. 1-14. ISSN 2227-7099 http://www.mdpi.com/2227-7099/5/2/11/htm |
| spellingShingle | H1-99 Social sciences (General) Abubakr Badeeb, Ramez Hooi, Hooi Lean Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title | Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title_full | Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title_fullStr | Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title_full_unstemmed | Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title_short | Natural Resources and Productivity: Can Banking Development Mitigate the Curse? |
| title_sort | natural resources and productivity can banking development mitigate the curse |
| topic | H1-99 Social sciences (General) |
| url | http://eprints.usm.my/37092/1/%28Natural_Resources_and_Productivity%29_economies-05-00011.pdf |
| work_keys_str_mv | AT abubakrbadeebramez naturalresourcesandproductivitycanbankingdevelopmentmitigatethecurse AT hooihooilean naturalresourcesandproductivitycanbankingdevelopmentmitigatethecurse |