Analysis of the “Financial Resource Curse” Hypothesis: The Case of BRICS Countries

Abstract

Having natural resources is expected to increase the level of economic growth and financial development. This expectation does not seem to be the case, however, for some resource-rich countries. In this context, the aim of the study is to determine whether the "Financial Resource Curse" hypothesis is valid in the BRICS countries which are rich in natural resources for the 1992-2018 period. In the study, second generation test techniques that allow for cross-sectional dependence and heterogeneity were used for empirical analysis. According to the empirical findings, the effect of natural resource income on the level of financial development is positive in Brazil and Russia, and negative in South Africa. In China and India, however, no statistically significant relationship could be found between natural resource income and financial development. As a result, it has been determined that the “Financial Resource Curse” hypothesis is valid only for South Africa among the BRICS countries. In order to reduce the negative effects of South Africa's abundance of natural resources and to overcome this disadvantage, it is important to use natural resource revenues efficiently and transfer them to other sectors of the economy, to focus on technological innovations and human capital development.

Keywords

• Financial Resource Curse
• Natural Resource Abundance
• BRICS
• Panel Data Analysis.

“Finansal Kaynak Laneti” Hipotezinin Analizi: BRICS Ülkeleri Örneği

Abstract

Doğal kaynaklara sahip olmanın, ekonomik büyümeyi ve finansal kalkınma düzeyini artırması beklenmektedir. Ancak bu beklentinin, kaynak açısından zengin bazı ülkeler için her zaman böyle olmadığı görülmektedir. Bu bağlamda çalışmanın amacı, doğal kaynak yönünden zengin BRICS ülkelerinde 1992-2018 dönemi için finansal kaynak laneti hipotezinin geçerliliğini sınamaktır. Çalışmada ampirik analiz için yatay kesit bağımlılığına ve heterojenliğe izin veren ikinci nesil analiz yöntemleri kullanılmıştır. Elde edilen ampirik bulgulara göre, Brezilya ve Rusya’da doğal kaynak gelirinin finansal kalkınma düzeyi üzerindeki etkisi pozitif, Güney Afrika’da negatiftir. Çin ve Hindistan’da ise doğal kaynak geliri ve finansal kalkınma arasında istatistiksel olarak anlamlı bir ilişki tespit edilememiştir. Sonuç olarak finansal kaynak laneti hipotezinin BRICS ülkelerinden sadece Güney Afrika’da geçerli olduğu belirlenmiştir. Güney Afrika’nın doğal kaynak bolluğunun getirdiği olumsuz etkileri azaltabilmek ve bu dezavantajdan kurtulabilmek için doğal kaynak gelirlerini verimli bir şekilde kullanarak ekonominin diğer sektörlerine de aktarması, teknolojik yenilikler ve beşerî sermayenin gelişimine odaklanması, politik istikrarı artıracak ve yoksulluğu azaltacak güçlü politika uygulamalarını hayata geçirmesi önem arz etmektedir.

Keywords

• Finansal Kaynak Laneti
• Doğal Kaynak Bolluğu
• BRICS
• Panel Veri Analizi.

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