Publication
Spatial Nexus: Natural Resources and Economic Growth, with Thanasis Stengos and Yiguo Sun, Empirical Economics, 69, (2025): 1117- 1152.
The “Resource Curse” phenomenon has been a central theme in resource economic research over the past few decades, with numerous studies highlighting the paradox where countries rich in natural resources experience slower economic growth. This paper revisits this critical issue by examining the relationship between natural resource rents and economic growth, specifically in non-OECD countries. Given that many of these nations are both resource-rich and characterized by relatively low economic growth, this study employs a spatial Durbin model toprovide a nuanced understanding of the impact of resource rents on economic performance. Our findings reinforce the notion of the “Resource Curse,” revealing that, in most cases, resource rents exert a detrimental effect on economic growth, thereby exacerbating the economic challenges faced by these countries. When the “Resource Curse” emerges, not only the home country but also neighboring countries are potential to be harmed. The results underscore the importance of effective resource management and policy interventions to mitigate the adverse effects of resource dependence on long-term economic development.
Working Papers
Spatial Nexus: Renewable and Nonrenewable Energy Consumption and CO2 Emissions. 2024. (Joint with Thanasis Stengos and Yiguo Sun ) Submitted and Under Review
Extensive research has explored the relationship between energy consumption, GDP per capita, and carbon dioxide (CO2) emissions per capita. Building upon this substantial body of literature, our study employs a dataset of 97 globally selected countries spanning from 1995 to 2015, using a spatial Durbin model to revisit this nexus from a spatial perspective, emphasizing interdependencies of the economies and spatial dynamics of CO2 emissions. First, our results uncover the spillover effects of CO2 emissions among geographical, institutional, and economic neighbors. Second, the direct effects of renewable energy consumption suggest that increasing renewable energy consumption in a country reduces its CO2 emissions. The indirect effects of renewable energy consumption indicate that increasing renewable energy consumption in one country also reduces CO2 emissions in neighboring countries. Third, most of the direct effects of non-renewable energy consumption suggest that increasing non-renewable energy consumption in a country increases its CO2 emissions. Similarly, the indirect effects show that increasing non-renewable energy consumption in one country leads to an increase in CO2 emissions in neighboring countries. Thus, international environmental policies are critical in addressing global climate change and achieving the 2030 Sustainable Development Goals (SDGs).
Energy Consumption and Economic Performance in a Spatial Context: Spillover Effects Across Borders. 2023. (Joint with Thanasis Stengos and Yiguo Sun ) Submitted and Under Review
Extensive research has delved into the interplay between energy consumption and economic development. Building upon this rich literature, this paper revisits this nexus from a spatial perspective which emphasizes the interdependencies and spatial dynamics. We utilize a dataset of 103 globally selected countries spanning from 1990 to 2015. Our empirical findings reveal a robust and positive relationship between renewable energy consumption, nonrenewable energy consumption, and GDP per capita within a country, aligning with existing results from current studies. Furthermore, employing a unified spatial model, our study uncovers spillover effects between countries through geographical, economic, and institutional channels. Notably, the results elucidate the intriguing phenomenon of increased energy consumption in neighboring countries leading to a decline in the GDP per capita of the home country. The potential rationale of negative impact can be attributed to increased CO2 emissions from neighboring countries, leading to heightened health costs and burdens in the home country. Additionally, Renewable Energy Technology Innovation (RETI) drives local green industrial advancement while hindering neighboring nations, and impacting the home country’s economy.
Work in Progress
From QE to QT, what is the impact on the housing market in developed countries? 2023. (United Nations Working Paper Joint with Ingo Pitterle)