Author
Gu, J. Q., Umar, M., Soran, Semih, Yue, X. G.
Publication Date
2020-08
Publication Place
-
Elsevier
Subject
Financial development, Natural resources, Research and development, Energy prices, G-7 countries
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
0301-4207
Record ID
c4db91a2-9511-4619-9c61-501a2de85ff1
Library Location
Professional Flight Program
Date
2020-08
Notes
National Social Science Fund of China
Sample Text
This study investigates the impact of natural resources in the presence of research and development and energy prices on the improvement of financial development for the Group of Seven (G7) economies for the period of 1990-2017. In doing so, the study employs a cross-sectional dependence test, Westerlund cointegration approach, and Common Correlated Effect Mean Group methods. Moreover, for robustness checks, this study uses cross-sectionally augmented ARDL (CS-ARDL) and augmented mean group (AMG) tests. Unlike previous studies, our study uses a multidimensional approach to financial development, which captures the performance, accessibility, and depth of both financial institutions and markets. The outcomes indicate that natural resource abundance for G-7 countries helps expand financial development. In contrast, rising energy prices adversely affect the expansion of financial development. However, research and development expenditures increase financial development. From the empirical findings, this study suggests the promotion of research and development expenditures, control the increasing energy prices to further benefit from the abundance of natural resources in G-7 economies.
DOI
10.1016/j.resourpol.2020.101689
Cilt
67
