Research On The Relationship Between Resource Industry Dependence And Economic Growth

In social production,natural resources play an important role as an input factor for one of the productions.Before the industrial revolution,people have been able to bring in many benefits through the development and utilization of natural resources.After the industrial revolution,the status of natural resources has been rising in both production and life,and abundant resources have used natural resources for capital accumulat io n.To develop domestic industries.This has led many economists to believe that natural resources are the material wealth of the country.With resources as the foundation,the country can achieve considerable development.In the middle and late 20 th century,people found that many resource-rich countries and regions use natural resources to develop their economies.Instead of driving the economic growth,they have stagnated,and some countries have even regressed to the level of decades ago.So economists began to study the relationship between natural resources and economic growth,and cal ed the phenomenon that natural resources utilization led to economic regression.However,through research,it is found that not all countries with abundant natural resources have a resource curse phenomenon.Many countries with good economic development have also achieved economic growth through the development of their own resources.This paper mainly studies the relationship between economic growth and resource dependence,and analyzes resource endowments from many angles as a blessing or a curse for the development of a country and region.For resource-rich regions,this paper is based on the theory of economic growth and the resource curse hypothesis.According to the traditional mechanism of resource curse,and briefly formulating the formula,it is believed that the development of resource-based industries in resourcebased regions will bring short-term economic growth to the region.And in the longterm,with the increase of resource dependence,it may lead to capital crowding,technological innovation and extrusion,and education extrusion.It may also lead to weakening of the system and weakening of property rights in the long run.These factors ultimately lead to the combination of these factors.The area fal s into the curse of resources.On this basis,this paper proposes the inverse U-type nonlinear relations hip hypothesis of resource dependence and economic growth,and performs panel regression analysis and threshold panel test.It verifies the inverse U-type nonlinear relationship hypothesis of resource dependence and economic growth.Obtained the following main conclusions :(1)The resource curse hypothesis is only a one-sided description of the relationship between resource dependence and economic growth as a linear negative correlation.We test the proposition hypothesis to find an inverted Ushaped curve relationship between resource dependence and economic growth;(2)Resources-intensive countries and regions develop resource-intensive industr ies.Before resource-based industries account for the turning point of the total economy,the development of resource-based industries will bring the greatest economic growth to a country and region,and then increase the resource-based industries.Profit,expanding resource-based industries and increasing resource dependence;(3)The excess profits and scale expansion of resource-based industries have attracted capital and labor into the resource-based industries,slowing the accumulation of capital and human capital,resulting in the inability to invest sufficient capital and human capital in other industr ies,that is,resource dependence.The technology research and development department and the manufacturing sector have formed an extrusion effect,which simplifies the industrial structure in the economy.In addition,the entrepreneurs have carried out a large amount of rent-seeking activities,which has weakened the system,lacked property rights,and finally fell into the curse of resources;(4)Conversely,if we can focus on the rationalization and upgrading of industrial structure and clarify property rights in the process of economic development,carry out institutional reforms,and adhere to the marketization process,we can prevent the region from fal ing into the curse of resources.The innovation of this article lies in: Based on the hypothesis of resource-dependentness and economic growth,the paper analyzes the theory of combined Ushaped relationship and concludes that it is not necessary to develop resource-based industries into resource curses.And using panel regression and threshold panel regression to carry out the empirical test of hypothesis,and analyze the transmis s io n path that may cause resource curse,that is,the extrusion effect of resource dependence on the manufacturing sector,the crowding out effect of the science and technology research and development department and the weakening effect on the system.And put forward specific policy recommendations for countries with backward technology to avoid fal ing into resource curses.