Abstract
Economic diversification is an essential aspect of sustainable development as diversification enhances macroeconomic stability and promotes structural and long-term transformation not only in the economy but also in other pillars of development such as social institutions and dimensions. There is empirical evidence suggesting an impact of economic and structural factors on diversification. However, there is no consensus on the results in the literature because of various factors, such as the employment of different variables, methodologies, countries, and periods. This paper empirically explores the relations driving economic diversification in 14 resource-rich countries between 2001 and 2019, with six alternative models. In this regard, feasible generalized least squares regression was employed for the proposed model specifications. It provides strong evidence that gross capital formation, financial development, labor force participation, education, and the rule of law have statistically significant and positive impacts on economic diversification performance. On the other hand, inward foreign direct investment, real GDP growth, and self-employment rate also have statistically significant, but negative, impacts on economic diversification, probably because they further promote or are a result of resource-based growth rather than diversification into other technology- and knowledge-based sectors.
Subject
Management, Monitoring, Policy and Law,Renewable Energy, Sustainability and the Environment,Geography, Planning and Development
Reference60 articles.
1. The Natural Resource Curse: A Survey;Frankel,2010
2. Exchange Rate Pressure in Angola;Franco,2015
3. The Impact of Natural Resources: Survey of Recent Quantitative Evidence
4. Blocking the Pathway Out of the Resource Curse: What Hinders Diversification in Resource-Rich Developing Countries?;Ahmadov,2014
5. Economic Diversification Potential in the Rentier States Towards for a Sustainable Development: A Theoretical Model
Cited by
18 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献