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Technology input, openness and “resource curse”: an examination of terms of trade with China's provincial panel data

DONG Lihong1 YAN Taihua1

(1.Economics and Business Administration, Chongqing University)

【Abstract】Employing the threshold model and adopting provincial panel data from 1997 to 2012, this paper conducts an empirical study to reveal the interactional mechanism between technology input, openness degree and the “resource curse” phenomena, test the validity of the threshold effect and evaluate the influence of the threshold effect. The research finds that technology input and the openness degree have a threshold effect on the “resource curse” phenomenon; when technology input and openness degree are higher than the respective threshold values 0.0176 and 1.1653 they can effectively improve the relationship between resources and economic growth and promote regional economic development; abundant natural resources will not hinder the development of the regional economy, and the crux of the appearance of “resource curse” in the regional economy is resource dependency; the labor intensive and low–tech characteristics of the natural resource sector make technology input and openness degree the main influencing factors of natural resource hindering China’s economic growth.

【Keywords】 technology input; openness; resource curse; panel threshold model; Technology input; Openness degree; Resource curse; Panel threshold model;

【DOI】

【Funds】 General Project of Social Sciences Planning of Chongqing Municipal Government (2014YBJJ032) Youth Foundation for The West and Border Area of the Program of Research for Humanities and Social Sciences , the Ministry of Education(09XJC810006)

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This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 09, Pages 55-65

September 2015

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Article Outline

Abstract

  • Introduction
  • 1. Literature review and conduction mechanism
  • 2 Model setting and variables
  • 3 Econometric test and empirical analysis
  • 4 Result analysis
  • 5 Conclusion and implications
  • References