1. The impact of natural resources on economic welfare: Cross-country analysis with a focus on Indonesia
- Author
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Daniels, Peter L, Davey, Peter J, Anggraeni, Palupi, Daniels, Peter L, Davey, Peter J, and Anggraeni, Palupi
- Abstract
Full Text, Thesis (PhD Doctorate), Doctor of Philosophy (PhD), School of Environment and Sc, Griffith Sciences, The objective of this research is to provide empirical evidence regarding the nature of the relationship between natural resource rents and economic welfare. Firstly, this relationship is examined in 144 countries from 1996 to 2016; then the relationship is analysed for different groupings of these countries, based on their level of natural resource revenue as a share of total fiscal revenue and in terms of per capita income. Employing fixed-effect regression for panel data, three major auxiliary variables are included in the analysis—institutional quality, foreign direct investment (FDI) and industry value added (IVA). Due to their potential significance for the relationship between natural resource rents and economic welfare, these are analysed as both independent and moderator variables. The study is then extended to focus on one resource-rich country (RRC): Indonesia. Not only is Indonesia endowed with abundant natural resources, but it has also been posited as an example of a country that has overcome the ‘resource curse’—the failure of many RRCs to benefit fully from their natural resource wealth (Hanif & Bria, 2016; Rosser, 2004, 2007). Conversely, some studies claim that the resource curse does exist in Indonesia (see Hanafi & Martawardaya, 2015; Putra & Widodo, 2013). The analysis presented in this thesis comprises a time series regression analysis and a qualitative analysis based on primary data from key informant interviews. The results from the broad sample of countries suggest that, although rents generated from natural resource sectors have contributed positively to economic welfare, as measured by adjusted net saving (ANS), these rents have a conditional link to economic welfare. A focus on RRCs further demonstrates this ambiguous relationship; several models demonstrate no significant association. Following segregation of the RRCs according to per capita income levels, it became evident that a negative association between rents and economic welfare a
- Published
- 2020