Natural resources as blessings and finance-growth nexus: A bootstrap ARDL approach in an emerging economy

By Kishwar Nawaz, Amine Lahiani, David Roubaud. Resources policy, 2019

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This paper examines the link between financial development and economic growth in Pakistan by considering important role of natural resources in production function for the period of 1972–2017. Capital and labour are additional contributing factors of economic growth. To determine the integrating properties of the variables, we apply SOR unit root test containing information for sharp and smooth structural breaks in the series. We also employ the bootstrapping ARDL bounds testing approach to examine the cointegration between the factors of production. The causal relationship between financial development, natural resources, capital, labour and economic growth is tested by applying the VECM Granger causality test in the presence of structural breaks.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/a3f4bd65fb7c9b5e3c0b2ccf684c4b62cdce79d5