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<p>Exploitation is inevitable when using the Earth’s natural resources to produce goods and services. The role of natural resources in generating economic growth might vary, either favourably or adversely, depending on the circumstances. Essentially, natural resources can help or inhibit growth and development. Participating in excessive rent-seeking activities may result in poor governance, which leads to the Nigerian disease. Inefficiency in resource utilization exacerbates the circumstances. The goal of this research is to assess the prevalence of Nigerian disease in South Asia and investigate how political stability and resource rents can work together to reduce the negative consequences of the resource curse. The Panel QARDL (Quantile Autoregressive Distributed Lag) approach was used to data ranging from 1980 to 2020. The interaction effect emphasizes the importance of politically stable economies in minimizing the negative consequences of the resource curse. The findings indicate that political stability is an important factor in economic development. This study claims that by allocating resources efficiently and maintaining a stable political climate, rent-seeking behavior and corruption can be reduced, allowing the region to overcome the negative repercussions of the resource curse.</p>

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Could political stability and the availability of resources have an impact on economic development? What we can learn about South Asian economies

  • 期刊论文

  • 发表日期：

    2025年6月27日

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  • Zakia Batool,
  • Abdul Rehman,
  • Sajjad Ali,
  • Ilhan Ozturk

摘要

Exploitation is inevitable when using the Earth’s natural resources to produce goods and services. The role of natural resources in generating economic growth might vary, either favourably or adversely, depending on the circumstances. Essentially, natural resources can help or inhibit growth and development. Participating in excessive rent-seeking activities may result in poor governance, which leads to the Nigerian disease. Inefficiency in resource utilization exacerbates the circumstances. The goal of this research is to assess the prevalence of Nigerian disease in South Asia and investigate how political stability and resource rents can work together to reduce the negative consequences of the resource curse. The Panel QARDL (Quantile Autoregressive Distributed Lag) approach was used to data ranging from 1980 to 2020. The interaction effect emphasizes the importance of politically stable economies in minimizing the negative consequences of the resource curse. The findings indicate that political stability is an important factor in economic development. This study claims that by allocating resources efficiently and maintaining a stable political climate, rent-seeking behavior and corruption can be reduced, allowing the region to overcome the negative repercussions of the resource curse.