Crack The Financial Path Of "Resource Curse"

The “resource curse” is a classic hypothesis in economics.Many international experiences and scholars have provided proof of this proposition.However,whether this hypothesis is established in China is still lacking in verification.With the increasing research on transmission mechanisms,there are very few researches on the "resource curse".Experience has shown that many resource-based regions in China have encountered obstacles to development,and the government has adopted relevant policies with little success.As the core blood of modern economic development,finance's resource allocation function has special significance for alleviating the "resource curse" and helping the transformation of resource-based cities.Exploring the causes of the "resource curse",finding the financial path to crack the "resource curse",and breaking through the resource problems,has become an important issue that the government of the local government needs to solve.In order to verify the existence of the “resource curse” at the provincial level in China and reveal the internal causes,this paper uses the panel data of 31 provinces and cities in China from 2008 to 2016 to conduct an empirical test of the path analysis through the SEM model.The phenomenon of resource curse has appeared in China.At the same time,the contribution of the direct action path is only 0.77%,while the influence of the indirect action path is as high as 99.23%.This reveals that the essential reason of the "resource curse" is not the rich natural resources themselves,but the mismatch of resources.The discussion of the relationship between resource endowment and financial development is the innovation of this paper.The study finds that finance itself is a part of the transmission mechanism of “resource curse”,attaches importance to the development of resource-based regional finance,encourages financial innovation,and will form a “resource curse”.Directly crack.In addition,the financial system as a strong force to promote economic development,its most important function is to be able to allocate resources efficiently,so we try to assess that the developed financial system can re-allocate mismatched resources and alleviate the resource endowment to economic growth.The indirect negative effect,which will be the fundamental solution to the "resource curse".Therefore,this paper proposes the path of financial cracking “resource curse” from five aspects: First,financial development can alleviate the macroeconomic fluctuations brought by “resource curse”;second,financial development can promote human capital accumulation and improve scientific and technological innovation;Third,financial development will alleviate the problem of investment inefficiency caused by the “resource curse”.Fourth,financial development can help other non-resource companies overcome financing constraints and promote the progress of other industries that are beneficial to economic development such as manufacturing.In order to verify the hypothesis,this paper uses the first-order differential GMM estimation method to empirically test the model including resource endowment,financial development and the interaction items of the two.The results show that financial development can effectively alleviate the “resource curse”.The empirical results of the five crack paths also support the hypothesis,and can indeed become the financial path to crack the "resource curse."...