The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries

Ömer Doru

doi:10.25229/beta.1779994

EN TR

The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries

Abstract

The purpose of this study is to examine the effects of natural resource rents (NRT) on economic growth in the BRICS countries and Türkiye sample during the period 1995–2021 and to examine the role of economic complexity (ECI) in this relationship. Empirical analysis consists of two complementary models has established using the panel quantile regression method. In Model I, economic growth is explained by the variables of natural resource rents, economic complexity, foreign direct investment, fixed capital investment, and corruption, while in Model II, the ECI x NRT interaction term is added to assess the effect of diversity in the production structure on resource dependence. The findings show that natural resource rents have a continuous and statistically significant negative effect on growth across all quantiles, supporting the resource curse hypothesis. The findings show that natural resource rents have a continuous and statistically significant negative effect on growth across all quantiles, supporting the resource curse hypothesis. In contrast, economic complexity, foreign direct investment, and fixed capital investment have positive effects, while corruption has negative effects. Model II results have shown that economic complexity does not reverse the negative impact of natural resource rents on growth, but it does mitigate this effect. The Kónya (2006) panel causality test has shown that there is a unidirectional causal relationship from natural resource rents to growth, while there is a predominantly bidirectional causal relationship between economic complexity and growth. Overall, the study shows that increasing economic complexity and strengthening institutional structures play a critical role in reducing the negative effects of resource dependency on growth and establishing a more sustainable growth path.

Keywords

Economic Complexity, Resource Rents, Quantile Regression

Ekonomik Karmaşıklığın Kaynak Lanetini Azaltmadaki Rolü: Kaynak Rantları, Yatırımlar ve Yolsuzluk Açısından BRICS-T Ülkeleri Üzerine Bir Analiz

Abstract

Bu çalışmanın amacı, 1995–2021 döneminde BRICS ülkeleri ve Türkiye örnekleminde doğal kaynak rantlarının (NRT) ekonomik büyüme üzerindeki etkilerini analiz etmek ve bu ilişkide ekonomik karmaşıklığın (ECI) rolünü incelemektir. Ampirik analiz, panel kantil regresyon yöntemiyle kurulan iki tamamlayıcı modelden oluşmaktadır. Model I’de ekonomik büyüme; doğal kaynak rantları, ekonomik karmaşıklık, doğrudan yabancı yatırım, sabit sermaye yatırımı ve yolsuzluk değişkenleriyle açıklanırken, Model II’de ECI × NRT etkileşim terimi eklenerek üretim yapısındaki çeşitliliğin kaynak bağımlılığı üzerindeki etkisi değerlendirilmiştir. Bulgular, doğal kaynak rantlarının tüm kantillerde büyüme üzerinde sürekli ve istatistiksel olarak anlamlı bir negatif etkisi olduğunu göstererek, kaynak laneti hipotezini desteklemektedir. Buna karşılık ekonomik karmaşıklık, doğrudan yabancı yatırım ve sabit sermaye yatırımları pozitif, yolsuzluk ise negatif etkiler sergilemektedir. Model II sonuçları, ekonomik karmaşıklığın doğal kaynak rantlarının büyüme üzerindeki olumsuz etkisini tersine çevirmese de bu etkiyi zayıflattığını ortaya koymaktadır. Kónya (2006) panel nedensellik testi ise doğal kaynak rantlarından büyümeye doğru tek yönlü, ekonomik karmaşıklık ile büyüme arasında ise ağırlıklı olarak çift yönlü nedensellik ilişkilerinin bulunduğunu göstermektedir. Genel olarak çalışma, ekonomik karmaşıklığın artırılması ve kurumsal yapının güçlendirilmesinin, kaynak bağımlılığının büyüme üzerindeki olumsuz etkilerini azaltmada ve daha sürdürülebilir bir büyüme süreci oluşturmada kritik bir rol oynadığını göstermektedir.

Keywords

Ekonomik Karmaşıklık, Kaynak Rantları, Kantil Regresyon

References

Ahmad, M., Ahmed, Z., & Luo, C. (2023). Natural resources, economic globalization, and sustainable development: Can economic complexity and environmental regulations cure the resource curse?. Natural Resources Forum, 1–19. https://doi.org/10.1111/1477-8947.12370
Ajide, K. B. (2022). Is natural resource curse thesis an empirical regularity for economic complexity in Africa?. Resources Policy, 76, 102755. https://doi.org/10.1016/j.resourpol.2022.102755
Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the role of local financial markets. Journal of international economics, 64(1), 89-112. https://doi.org/10.1016/S0022-1996(03)00081-3
Ateş, B., & Polat, M. A. (2023). Enerji yoksulluğu ve yenilenebilir enerji kullanımının çevresel bozulmaya etkileri. Hitit Sosyal Bilimler Dergisi, 16(2), 290-315.
Auty, R. (1993). Sustaining development in mineral economies: The resource curse thesis, Routledge. https://doi.org/10.4324/9780203422595
Awoa, P. A., Ondoa, H. A., & Tabi, H. N. (2024). Natural resources and income inequality: Economic complexity is the key. Environment and Development Economics, 29(2), 127-153. https://doi.org/10.1017/S1355770X2300013X
Badeeb, R. A., Lean, H. H., & Clark, J. (2017). The evolution of the natural resource curse thesis: A critical literature survey. Resources Policy, 51, 123-134. https://doi.org/10.1016/j.resourpol.2016.10.015
Borensztein, E., De Gregorio, J., & Lee, J. W. (1998). How does foreign direct investment affect economic growth?. Journal of international Economics, 45(1), 115-135. https://doi.org/10.1016/S0022-1996(97)00033-0
Boschini, A., Pettersson, J., & Roine, J. (2013). The resource curse and its potential reversal. World Development, 43, 19-41. https://doi.org/10.1016/j.worlddev.2012.10.007
Busse, M., & Gröning, S. (2013). The resource curse revisited: governance and natural resources. Public Choice, 154(1), 1-20. https://doi.org/10.1007/s11127-011-9804-0

Canh, N. P., Schinckus, C., & Thanh, S. D. (2020). The natural resources rents: is economic complexity a solution for resource curse?. Resources Policy, 69, 101800. https://doi.org/10.1016/j.resourpol.2020.101800
Cervellati, M., Meyerheim, G., & Sunde, U. (2023). The empirics of economic growth over time and across nations: a unified growth perspective. Journal of Economic Growth, 28(2), 173-224. https://doi.org/10.1007/s10887-022-09216-2
Cristelli, M., Tacchella, A., & Pietronero, L. (2015). The heterogeneous dynamics of economic complexity. PloS One, 10(2), e0117174. https://doi.org/10.1371/journal.pone.0117174
De Mello Jr, L. R. (1997). Foreign direct investment in developing countries and growth: A selective survey. The journal of development studies, 34(1), 1-34. https://doi.org/10.1080/00220389708422501
Destek, M. A., Hossain, M. R., Aydın, S., Shakib, M., & Destek, G. (2023). Investigating the role of economic complexity in evading the resource curse. Resources Policy, 86, 104131. https://doi.org/10.1016/j.resourpol.2023.104131
Frankel, J. A. (2012). The natural resource curse: A survey of diagnoses and some prescriptions. Commodity price volatility and inclusive growth in low-income countries, 7-34.
Gövdeli, T. (2018). Ekonomik özgürlük, turizm ve ekonomik büyüme: BRICST ülkelerinde Kónya Bootstrap Nedensellik Analizi. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 379-390. https://doi.org/10.18092/ulikidince.451262
Hartmann, D., Guevara, M. R., Jara-Figueroa, C., Aristarán, M., & Hidalgo, C. A. (2017). Linking economic complexity, institutions, and income inequality. World Development, 93, 75-93. https://doi.org/10.1016/j.worlddev.2016.12.020
Hausmann, R., Hidalgo, C. A., Bustos, S., Coscia, M., & Simoes, A. (2014). The atlas of economic complexity: Mapping paths to prosperity. Mit Press. https://doi.org/10.7551/mitpress/9647.001.0001
Havranek, T., Horvath, R., & Zeynalov, A. (2016). Natural resources and economic growth: A meta-analysis. World Development, 88, 134-151. https://doi.org/10.1016/j.worlddev.2016.07.016
Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the National Academy of Sciences, 106(26), 10570-10575. https://doi.org/10.1073/pnas.0900943106
Hsueh, S. J., Hu, Y. H., & Tu, C. H. (2013). Economic growth and financial development in Asian countries: A bootstrap panel Granger causality analysis. Economic modelling, 32, 294-301. https://doi.org/10.1016/j.econmod.2013.02.027
Iamsiraroj, S., & Ulubaşoğlu, M. A. (2015). Foreign direct investment and economic growth: A real relationship or wishful thinking?. Economic modelling, 51, 200-213. https://doi.org/10.1016/j.econmod.2015.08.009
Koenker, R. (2004). Quantile regression for longitudinal data. Journal of Multivariate Analysis, 91(1), 74-89. https://doi.org/10.1016/j.jmva.2004.05.006
Koenker, R. (2005). Quantile regression (Vol. 38). Cambridge University Press.
Koenker, R., & Bassett Jr, G. (1978). Regression quantiles. Econometrica: Journal of the Econometric Society, 33-50. https://doi.org/10.2307/1913643
Koenker, R., & Hallock, K. F. (2001). Quantile regression. Journal of Economic Perspectives, 15(4), 143-156. https://doi.org/10.1257/jep.15.4.143
Kónya, L. (2006). Exports and growth: Granger causality analysis on OECD countries with a panel data approach. Economic Modelling, 23(6), 978-992. https://doi.org/10.1016/j.econmod.2006.04.008
Kumari, R., Shabbir, M. S., Saleem, S., Yahya Khan, G., Abbasi, B. A., & Lopez, L. B. (2023). An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy. South Asian Journal of Business Studies, 12(1), 127-149. https://doi.org/10.1108/SAJBS-06-2020-0199
Li, S., Sun, H., Sharif, A., Bashir, M., & Bashir, M. F. (2024). Economic complexity, natural resource abundance and education: Implications for sustainable development in BRICST economies. Resources Policy, 89, 104572. https://doi.org/10.1016/j.resourpol.2023.104572
Li, Z., Doğan, B., Ghosh, S., Chen, W. M., & Lorente, D. B. (2024). Economic complexity, natural resources and economic progress in the era of sustainable development: Findings in the context of resource deployment challenges. Resources Policy, 88, 104504. https://doi.org/10.1016/j.resourpol.2023.104504
Mankiw, N. G., Romer, D., & Weil, D. N. (1992). A contribution to the empirics of economic growth. The quarterly journal of economics, 107(2), 407-437. https://doi.org/10.2307/2118477
Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681-712. https://doi.org/10.2307/2946696
Mehlum, H., Moene, K., & Torvik, R. (2006). Institutions and the resource curse. The economic Journal, 116(508), 1-20. https://doi.org/10.1111/j.1468-0297.2006.01045.x
Méon, PG., Sekkat, K. (2005). Does corruption grease or sand the wheels of growth?. Public Choice 122, 69–97. https://doi.org/10.1007/s11127-005-3988-0
Mesagan, E. P., & Vo, X. V. (2024). The importance of economic complexity in the resource-growth discourse: Empirical evidence from Africa. Journal of the Knowledge Economy, 15(1), 2772-2793. https://doi.org/10.1007/s13132-023-01227-7
Mongi, C., & Saidi, K. (2024). The impact of corruption, government effectiveness, FDI, and GFC on economic growth: New evidence from global panel of 48 middle-income countries. Journal of the Knowledge Economy, 15(3), 10696-10721. https://doi.org/10.1007/s13132-023-01509-0
Opoku, E. E. O., & Aluko, O. A. (2021). Heterogeneous effects of industrialization on the environment: Evidence from panel quantile regression. Structural Change and Economic Dynamics, 59, 174-184. https://doi.org/10.1016/j.strueco.2021.08.015
Owjimehr, S., & Jamshidi, N. (2024). Why do natural resource-rich economies resist improving the economic complexity?. Regional Science Policy & Practice, 16(7), 100017. https://doi.org/10.1016/j.rspp.2024.100017
Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312. https://doi.org/10.1002/jae.951
Pesaran, M. H., & Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93. https://doi.org/10.1016/j.jeconom.2007.05.010
Rahim, S., Murshed, M., Umarbeyli, S., Kirikkaleli, D., Ahmad, M., Tufail, M., & Wahab, S. (2021). Do natural resources abundance and human capital development promote economic growth? A study on the resource curse hypothesis in Next Eleven countries. Resources, Environment and Sustainability, 4, 100018. https://doi.org/10.1016/j.resenv.2021.100018
Romer, D. (1996). Advanced Macroeconomics. McGraw-Hill. Rostow, W. W. (1959). The stages of economic growth. The Economic History Review, 12(1), 1-16. https://doi.org/10.2307/2591077
Sachs, J. D., & Warner, A. M. (2001). The curse of natural resources. European Economic Review, 45(4-6), 827-838. https://doi.org/10.1016/S0014-2921(01)00125-8
Sachs, J.D. & Warner, A.M. (1995). Natural Resource Abundance and Economic Growth (Working Paper No. 5398). National Bureau of Economic Research..
Saud, S., Haseeb, A., Zafar, M. W., & Li, H. (2023). Articulating natural resource abundance, economic complexity, education and environmental sustainability in MENA countries: Evidence from advanced panel estimation. Resources Policy, 80, 103261. https://doi.org/10.1016/j.resourpol.2022.103261
Stiglitz, J. E. (1974). Growth with exhaustible natural resources: the competitive economy. The Review of Economic Studies, 41(5), 139-152. https://doi.org/10.2307/2296378
Swamy, R. N. (1971). Dynamic Poisson's ratio of portland cement paste, mortar and concrete. Cement and Concrete Research, 1(5), 559-583. https://doi.org/10.1016/0008-8846(71)90060-3
Tabash, M. I., Mesagan, E. P., & Farooq, U. (2022). Dynamic linkage between natural resources, economic complexity, and economic growth: Empirical evidence from Africa. Resources Policy, 78, 102865. https://doi.org/10.1016/j.resourpol.2022.102865
van der Ploeg, F. (2011). Natural resources: Curse or blessing? Journal of Economic Literature, 49(2), 366–420. https://doi.org/10.1257/jel.49.2.366
Westerlund, J., & Edgerton, D. L. (2007). A panel bootstrap cointegration test. Economics letters, 97(3), 185-190. https://doi.org/10.1016/j.econlet.2007.03.003
Zhang, C., Waris, U., Qian, L., Irfan, M., & Rehman, M. A. (2024). Unleashing the dynamic linkages among natural resources, economic complexity, and sustainable economic growth: Evidence from G‐20 countries. Sustainable Development, 32(4), 3736-3752. https://doi.org/10.1002/sd.2845
Zhu, H., Xia, H., Guo, Y., & Peng, C. (2018). The heterogeneous effects of urbanization and income inequality on CO2 emissions in BRICS economies: evidence from panel quantile regression. Environmental Science and Pollution Research, 25(17), 17176-17193. https://doi.org/10.1007/s11356-018-1900-y

Details

Primary Language

English

Subjects

Panel Data Analysis, Growth, International Economics (Other)

Journal Section

Research Article

Authors

Ömer Doru ^*
0000-0001-8119-4908
Türkiye

Early Pub Date

April 8, 2026

Publication Date

-

Submission Date

September 8, 2025

Acceptance Date

March 10, 2026

Published in Issue

Year 2026 Number: Advanced Online Publication

DOI

https://doi.org/10.25229/beta.1779994

IZ

https://izlik.org/JA98MS82NZ

APA

Doru, Ö. (2026). The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries. Bulletin of Economic Theory and Analysis, Advanced Online Publication. https://doi.org/10.25229/beta.1779994

AMA

1.Doru Ö. The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries. Beta. 2026;(Advanced Online Publication). doi:10.25229/beta.1779994

Chicago

Doru, Ömer. 2026. “The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries”. Bulletin of Economic Theory and Analysis, no. Advanced Online Publication. https://doi.org/10.25229/beta.1779994.

EndNote

Doru Ö (April 1, 2026) The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries. Bulletin of Economic Theory and Analysis Advanced Online Publication

IEEE

[1]Ö. Doru, “The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries”, Beta, no. Advanced Online Publication, Apr. 2026, doi: 10.25229/beta.1779994.

ISNAD

Doru, Ömer. “The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries”. Bulletin of Economic Theory and Analysis. Advanced Online Publication (April 1, 2026). https://doi.org/10.25229/beta.1779994.

JAMA

1.Doru Ö. The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries. Beta. 2026. doi:10.25229/beta.1779994.

MLA

Doru, Ömer. “The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries”. Bulletin of Economic Theory and Analysis, no. Advanced Online Publication, Apr. 2026, doi:10.25229/beta.1779994.

Vancouver

1.Ömer Doru. The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries. Beta. 2026 Apr. 1;(Advanced Online Publication). doi:10.25229/beta.1779994

images?q=tbn:ANd9GcRvoKvjUr081z-KcdXLcXXPQTR9B7O8m0BOBg&s

The articles published in this journal are licensed under a Creative Commons Attribution 4.0 International License.

The Role of Economic Complexity in Reducing the Impact of the Resource Curse: An Analysis of Resource Rents, Investments, and Corruption in BRICS-T Countries

Abstract

Keywords

Ekonomik Karmaşıklığın Kaynak Lanetini Azaltmadaki Rolü: Kaynak Rantları, Yatırımlar ve Yolsuzluk Açısından BRICS-T Ülkeleri Üzerine Bir Analiz

Abstract

Keywords

References

Details

Primary Language

Subjects

Journal Section

Authors

Early Pub Date

Publication Date

Submission Date

Acceptance Date

Published in Issue

DOI

IZ

Cite