Forest and mineral volatility and economic performance: Evidence from frequency domain causality approach for global data

Mingting Xie, Muhammad Irfan (), Asif Razzaq and Vishal Dagar ()

Resources Policy, 2022, vol. 76, issue C

Abstract: It is evident that countries with abundant natural resources have comparatively higher wealth sources. However, there is no conclusive evidence regarding the impact of natural resources on economic performance. Therefore, this study aims to analyze the impact of mineral and forestry resources volatility on economic performance using a frequency domain causality approach and Breitung-Candelon spectral ganger causality for global data. For this purpose, we employ Autoregressive conditional heteroskedasticity (ARCH), Threshold Generalized ARCH (TARCH), and the exponential general ARCH (EGARCH) methods. The results confirm an uni-directional causality from mineral and forestry resources volatility to economic performance in the short, medium, and long run. There is no feedback effect observed from economic growth to volatility in mineral and forestry resources. The results suggest that sustainable use of material resources is imperative to achieve green growth agenda.

Keywords: Natural resources volatility; Frequency domain causal approach; Breitung-candelon spectral granger causality test; ARCH; TGARCH; EGARCH (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:76:y:2022:i:c:s0301420722001337

DOI: 10.1016/j.resourpol.2022.102685

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