Energy Abundance and China's Economic Growth:2000-2014

SUN Dongqi; LU Dadao; LI Yu; ZHOU Liang; ZHANG Mingdou

doi:10.1007/s11769-017-0901-y

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SUN Dongqi, LU Dadao, LI Yu, ZHOU Liang, ZHANG Mingdou. Energy Abundance and China's Economic Growth:2000-2014[J]. Chinese Geographical Science, 2017, 27(5): 673-683. doi: 10.1007/s11769-017-0901-y

Citation:

SUN Dongqi, LU Dadao, LI Yu, ZHOU Liang, ZHANG Mingdou. Energy Abundance and China's Economic Growth:2000-2014[J]. Chinese Geographical Science, 2017, 27(5): 673-683. doi: 10.1007/s11769-017-0901-y

Energy Abundance and China's Economic Growth:2000-2014

doi: 10.1007/s11769-017-0901-y

1.
Key Laboratory of Regional Sustainable Development Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China;
2.
Faculty of Geomatics, Lanzhou Jiaotong University, Lanzhou 730070, China;
3.
School of Public Administration, Dongbei University of Finance and Economics, Dalian 116025, China

Funds: Under the auspices of National Natural Science Foundation of China (No.41530634,41501137)

More Information

Corresponding author: ZHANG Mingdou,E-mail:zhangmingdou0537@126.com
Received Date: 2017-02-13
Rev Recd Date: 2017-06-06
Publish Date: 2017-10-27

Abstract

Based on the interprovincial panel data of 2000-2014, this paper carries out an empirical analysis on the relationship between energy abundance and economic growth to test the theoretical hypothesis of ‘resource curse’ and explore its transmission mechanism for China and its three regions. The results show that, at the national level, positive correlation is present between energy abundance and economic growth, proving that the ‘resource curse’ phenomenon does not exist in China as a whole. Moreover, material capital input, human capital input and the level of opening to the outside world could promote economic growth, while technology innovation input may hinder economic growth. As seen by region, a positive correlation also exists between the energy abundance and economic growth in the eastern and western regions, and there is no ‘resource curse’ phenomenon either. In all three regions, the human capital input could promote economic growth. Material capital input could promote economic growth in the eastern but hinder economic growth in the western region; the level of opening to the outside world could promote economic growth in the eastern region. It is known through further survey and analysis on the transmission mechanism of resource curse that, at the national level, material capital input, human capital input, and the level of opening to the outside world present positive correlation with energy abundance, indicating that energy development becomes an important transmission factor by strengthening material capital input and human capital input and raising the level of opening to the outside world. However, technology innovation input presents negative correlation with energy development. As seen by region, both the material capital input and human capital input present positive correlation with energy development strength in the three regions. Similar as the eastern region, the level of opening to the outside world presents positive correlation with energy industry development in the middle and western regions; however, the energy development presents negative correlation with technology input level in the western region.
- energy abundance,
- resource curse,
- economic growth,
- transmission mechanism,
- China

References

[1]	Angrist J D, Kugler A D, 2008. Rural windfall or a new resource curse? Coca, income, and civil conflict in Colombia. The Review of Economics and Statistics, 90(2): 191–215. doi: 10. 1162/rest.90.2.191
[2]	Atkinson G, Hamilton K, 2003. Savings, growth and the resource curse hypothesis. World Development, 31(11): 1793–1807. doi: 10.1016/j.worlddev.2003.05.001
[3]	Auty R, Warhurst A, 1993. Sustainable development in mineral exporting economies. Resources Policy, 19(1): 14–29. doi:10.1016/0301-4207(93)90049-S Auty R, 2002. Sustaining Development in Mineral Economies:the Resource Curse Thesis. London: Routledge.
[4]	Auty R M, 1990. The impact of heavy-industry growth poles on South Korean spatial structure. Geoforum, 21(1): 23–33. doi:10.1016/0016-7185(90)90003-O Bacon R, 2001. Petroleum Taxes: Trends in Fuel Taxes (and Subsidies) and the Implications. Washington, DC: World Bank.
[5]	Botta A, 2010. Economic development, structural change and natural resource booms: a structuralist perspective. Metroeconomica, 61(3): 510–539. doi: 10.1111/j.1467-999X. 2009.04077.x
[6]	Brunnschweiler C N, Bulte E H, 2008. The resource curse revisited and revised: a tale of paradoxes and red herrings. Journal of Environmental Economics and Management, 55(3):248–264. doi: 10.1016/j.jeem.2007.08.004.
[7]	Chao Xiaojing, Shen Kunrong, 2014. Urban-rural income disparity, labor quality and economic growth in china. Economic Research Journal, (6): 30–43. (in Chinese)
[8]	Chen Jiagui, Huang Qunhui, Zhong Hongwu, 2006. The synthetic evaluation and analysis on regional industrialization. Economic Research Journal, (6): 4–15. (in Chinese)
[9]	Davis G A, Tilton J E, 2005. The resource curse. Natural Resources Forum, 2005, 29(3): 233–242.
[10]	Ding N, Barry C Field, 2005. Natural resource abundance and economic growth: a reexamination . Land Economics, 81(4):496–502
[11]	Gong Xiaoju, Zhao Yunping, 2012. A Comment on Heavy and Chemical Industries Layout Study. Modern Finance and Economics-Journal of Tianjin University of Finance and Economics, (8): 100–108. (in Chinese)
[12]	Gylfason T, 2001. Natural resources, education, and economic development. European Economic Review, 45(4–6): 847–859. doi: 10.1016/S0014-2921(01)00127-1
[13]	Gylfason T, Zoega G, 2006. Natural resources and economic growth: the role of investment. The World Economy, 29(8):1091–1115. doi: 10.1111/j.1467-9701.2006.00807.x Hirschman A O, 1958. The Strategy of Economic Development. Yale: Yale University Press.
[14]	Hodler R, 2006. The curse of natural resources in fractionalized countries. European Economic Review, 50(6): 1367–1386. doi: 10.1016/j.euroecorev.2005.05.004
[15]	Huang Yue, Fang Yangang, Zhang Ye et al, 2014. A study of resource curse effect of Chinese provinces based on human developing index. Chinese Geographical Science, 24(6):732–739. doi: 10.1007/s11769-014-0727-9
[16]	Humphreys M, 2005. Natural resources, conflict, and conflict resolution: uncovering the mechanisms. Journal of Conflict Resolution, 49(4): 508–537. doi: 10.1177/0022002705277545
[17]	Kamas L, 1986. Dutch disease economics and the Colombian export boom. World Development, 14(9): 1177–1198. doi: 10. 1016/0305-750X(86)90119-1
[18]	Lane P R, Tornell A, 1996. Power, growth, and the voracity effect. Journal of Economic Growth, 1(2): 213–241. doi: 10.1007/BF00138863
[19]	Lin Jifu, Wu H M, Xing Yiqing, 2010. ‘Wave phenomena’ and formation of excess capacity. Economic Research Journal, (10): 4–19. (in Chinese)
[20]	Lu Dadao, 2015. Moderate-speed growth: sustainable development of China’s economy. Scientia Geographica Sinica, 35(10): 1207–1219. doi: 10.13249/j.cnki.sgs.2015.010.1207(in Chinese)
[21]	Matsuyama K, 1992. Agricultural productivity, comparative advantage, and economic growth. Journal of Economic Theory, 58(2): 317–334. doi: 10.1016/0022-0531(92)90057-O
[22]	Pang Ruizhi, Fan Yu, Li Yang, 2014. Has technical innovation supported economic development in China? The Journal of Quantitative & Technical Economics, (10): 37–52. (in Chinese)
[23]	Papyrakis E, Gerlagh R, 2007. Resource abundance and economic growth in the United States. European Economic Review, 51(4): 1011–1039. doi: 10.1016/j.euroecorev.2006.04. 001
[24]	Qiu Ling, Shen Yuming, Ren Wangbing et al, 2008. Analysis on regional disparity and its influential factors of energy utilization efficiency in china. Journal of Natural Resources, 23(5):920–928. (in Chinese)
[25]	Sachs J D, Warner A M, 1995. Natural Resource Abundance and Economic Growth. NBER Working Paper No. 5398.
[26]	Sachs J D, Warner A M, 1997. Fundamental sources of long-run growth. The American Economic Review, 87(2): 184–188.
[27]	Sachs J D, Warner A M, 2001. The curse of natural resources. European Economic Review, 45(4–6): 827–838. doi: 10.1016/S0014-2921(01)00125-8
[28]	Sarkar P, Singer H W, 1991. Manufactured exports of developing countries and their terms of trade since 1965. World Development, 19(4): 333–340. doi: 10.1016/0305-750X(91)90180-P
[29]	Seers D, 1964. The mechanism of an open petroleum economy. Social and Economic Studies, 13(2): 233–242.
[30]	Shao Shuai, Qi Zhongying, 2008. Energy development and economic growth in western China: an empirical analysis based on the resource curse hypothesis. Economic Research Journal, (4): 147–160. (in Chinese)
[31]	Stijns J P C, 2005. Natural resource abundance and economic growth revisited. Resources Policy, 30(2): 107–130. doi: 10. 1016/j.resourpol.2005.05.001
[32]	Sun Dongqi, Zhang Jingxiang, Hu Yi et al., 2013. Spatial analysis of China’s eco-environmental quality: 1990-2010. Journal of Geographical Sciences, 23(4): 695–709. doi: 10.1007/s11442-013-1038-2
[33]	Tian Mao, Wu Youde, 2006. Studies on the adjustment of industrial structure of resources-exhausted city. Economic Geography, 26(4): 585–588, 597. (in Chinese)
[34]	Torvik R, 2002. Natural resources, rent seeking and welfare. Journal of Development Economics, 67(2): 455–470. doi: 10.1016/S0304-3878(01)00195-X
[35]	Wick K, Bulte E H, 2006. Contesting resources-rent seeking, conflict and the natural resource curse. Public Choice, 128(3–4): 457–476. doi: 10.1007/s11127-005-9010-z
[36]	Wright G, 1990. The origins of American industrial success, 1879-1940. American Economic Review, 80(4): 651–668.
[37]	Wright G, Czelusta J, 2004. The myth of the resource curse. Challenge, 47(2): 6–38.
[38]	Wu S M, Lei Y L, 2016. Study on the mechanism of energy abundance and its effect on sustainable growth in regional economies: a case study in China. Resources Policy, 47: 1–8. doi: 10.1016/j.resourpol.2015.10.006
[39]	Wu Yingmei, Zhang Lei, Li Ya et al, 2006. Spatial-temporal effects of energy system in west china and development strategies. Resources Science, 28(5): 114–119. (in Chinese)
[40]	Zhang Jing, Li Chenggu, 2012. The evolution of urban-rural relationship in central cities of China during transformation period. Acta Geographica Sinica, 67(8): 1021–1030. (in Chinese)
[41]	Zhang Yingxi, Xia Jiechang, 2013. Interregional openness and local growth in service-based on the dynamic analysis of provincial panel data. Industrial Economics Research, (5): 35–44, 103. (in Chinese)
[42]	Zhu Xuexin, 2007. Empirical research on the relationship of technology innovation and economic growth. Scientific Management Research, 25(6): 25–28. (in Chinese)

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通讯作者: 陈斌, bchen63@163.com

1.
沈阳化工大学材料科学与工程学院沈阳 110142

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Energy Abundance and China's Economic Growth:2000-2014

1. Key Laboratory of Regional Sustainable Development Modeling, Institute of Geographic Sciences and Natural Resources Research, Chinese Academy of Sciences, Beijing 100101, China;

2. Faculty of Geomatics, Lanzhou Jiaotong University, Lanzhou 730070, China;

3. School of Public Administration, Dongbei University of Finance and Economics, Dalian 116025, China

Funds: Under the auspices of National Natural Science Foundation of China (No.41530634,41501137)

Corresponding author: ZHANG Mingdou,E-mail:zhangmingdou0537@126.com

Received Date: 2017-02-13

Rev Recd Date: 2017-06-06

Publish Date: 2017-10-27

Key words:

Abstract: Based on the interprovincial panel data of 2000-2014, this paper carries out an empirical analysis on the relationship between energy abundance and economic growth to test the theoretical hypothesis of ‘resource curse’ and explore its transmission mechanism for China and its three regions. The results show that, at the national level, positive correlation is present between energy abundance and economic growth, proving that the ‘resource curse’ phenomenon does not exist in China as a whole. Moreover, material capital input, human capital input and the level of opening to the outside world could promote economic growth, while technology innovation input may hinder economic growth. As seen by region, a positive correlation also exists between the energy abundance and economic growth in the eastern and western regions, and there is no ‘resource curse’ phenomenon either. In all three regions, the human capital input could promote economic growth. Material capital input could promote economic growth in the eastern but hinder economic growth in the western region; the level of opening to the outside world could promote economic growth in the eastern region. It is known through further survey and analysis on the transmission mechanism of resource curse that, at the national level, material capital input, human capital input, and the level of opening to the outside world present positive correlation with energy abundance, indicating that energy development becomes an important transmission factor by strengthening material capital input and human capital input and raising the level of opening to the outside world. However, technology innovation input presents negative correlation with energy development. As seen by region, both the material capital input and human capital input present positive correlation with energy development strength in the three regions. Similar as the eastern region, the level of opening to the outside world presents positive correlation with energy industry development in the middle and western regions; however, the energy development presents negative correlation with technology input level in the western region.

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Reference (42)

[1]	Angrist J D, Kugler A D, 2008. Rural windfall or a new resource curse? Coca, income, and civil conflict in Colombia. The Review of Economics and Statistics, 90(2): 191–215. doi: 10. 1162/rest.90.2.191
[2]	Atkinson G, Hamilton K, 2003. Savings, growth and the resource curse hypothesis. World Development, 31(11): 1793–1807. doi: 10.1016/j.worlddev.2003.05.001
[3]	Auty R, Warhurst A, 1993. Sustainable development in mineral exporting economies. Resources Policy, 19(1): 14–29. doi:10.1016/0301-4207(93)90049-S Auty R, 2002. Sustaining Development in Mineral Economies:the Resource Curse Thesis. London: Routledge.
[4]	Auty R M, 1990. The impact of heavy-industry growth poles on South Korean spatial structure. Geoforum, 21(1): 23–33. doi:10.1016/0016-7185(90)90003-O Bacon R, 2001. Petroleum Taxes: Trends in Fuel Taxes (and Subsidies) and the Implications. Washington, DC: World Bank.
[5]	Botta A, 2010. Economic development, structural change and natural resource booms: a structuralist perspective. Metroeconomica, 61(3): 510–539. doi: 10.1111/j.1467-999X. 2009.04077.x
[6]	Brunnschweiler C N, Bulte E H, 2008. The resource curse revisited and revised: a tale of paradoxes and red herrings. Journal of Environmental Economics and Management, 55(3):248–264. doi: 10.1016/j.jeem.2007.08.004.
[7]	Chao Xiaojing, Shen Kunrong, 2014. Urban-rural income disparity, labor quality and economic growth in china. Economic Research Journal, (6): 30–43. (in Chinese)
[8]	Chen Jiagui, Huang Qunhui, Zhong Hongwu, 2006. The synthetic evaluation and analysis on regional industrialization. Economic Research Journal, (6): 4–15. (in Chinese)
[9]	Davis G A, Tilton J E, 2005. The resource curse. Natural Resources Forum, 2005, 29(3): 233–242.
[10]	Ding N, Barry C Field, 2005. Natural resource abundance and economic growth: a reexamination . Land Economics, 81(4):496–502
[11]	Gong Xiaoju, Zhao Yunping, 2012. A Comment on Heavy and Chemical Industries Layout Study. Modern Finance and Economics-Journal of Tianjin University of Finance and Economics, (8): 100–108. (in Chinese)
[12]	Gylfason T, 2001. Natural resources, education, and economic development. European Economic Review, 45(4–6): 847–859. doi: 10.1016/S0014-2921(01)00127-1
[13]	Gylfason T, Zoega G, 2006. Natural resources and economic growth: the role of investment. The World Economy, 29(8):1091–1115. doi: 10.1111/j.1467-9701.2006.00807.x Hirschman A O, 1958. The Strategy of Economic Development. Yale: Yale University Press.
[14]	Hodler R, 2006. The curse of natural resources in fractionalized countries. European Economic Review, 50(6): 1367–1386. doi:10.1016/j.euroecorev.2005.05.004
[15]	Huang Yue, Fang Yangang, Zhang Ye et al, 2014. A study of resource curse effect of Chinese provinces based on human developing index. Chinese Geographical Science, 24(6):732–739. doi: 10.1007/s11769-014-0727-9
[16]	Humphreys M, 2005. Natural resources, conflict, and conflict resolution: uncovering the mechanisms. Journal of Conflict Resolution, 49(4): 508–537. doi: 10.1177/0022002705277545
[17]	Kamas L, 1986. Dutch disease economics and the Colombian export boom. World Development, 14(9): 1177–1198. doi: 10. 1016/0305-750X(86)90119-1
[18]	Lane P R, Tornell A, 1996. Power, growth, and the voracity effect. Journal of Economic Growth, 1(2): 213–241. doi: 10.1007/BF00138863
[19]	Lin Jifu, Wu H M, Xing Yiqing, 2010. ‘Wave phenomena’ and formation of excess capacity. Economic Research Journal, (10): 4–19. (in Chinese)
[20]	Lu Dadao, 2015. Moderate-speed growth: sustainable development of China’s economy. Scientia Geographica Sinica, 35(10): 1207–1219. doi: 10.13249/j.cnki.sgs.2015.010.1207(in Chinese)
[21]	Matsuyama K, 1992. Agricultural productivity, comparative advantage, and economic growth. Journal of Economic Theory, 58(2): 317–334. doi: 10.1016/0022-0531(92)90057-O
[22]	Pang Ruizhi, Fan Yu, Li Yang, 2014. Has technical innovation supported economic development in China? The Journal of Quantitative & Technical Economics, (10): 37–52. (in Chinese)
[23]	Papyrakis E, Gerlagh R, 2007. Resource abundance and economic growth in the United States. European Economic Review, 51(4): 1011–1039. doi: 10.1016/j.euroecorev.2006.04. 001
[24]	Qiu Ling, Shen Yuming, Ren Wangbing et al, 2008. Analysis on regional disparity and its influential factors of energy utilization efficiency in china. Journal of Natural Resources, 23(5):920–928. (in Chinese)
[25]	Sachs J D, Warner A M, 1995. Natural Resource Abundance and Economic Growth. NBER Working Paper No. 5398.
[26]	Sachs J D, Warner A M, 1997. Fundamental sources of long-run growth. The American Economic Review, 87(2): 184–188.
[27]	Sachs J D, Warner A M, 2001. The curse of natural resources. European Economic Review, 45(4–6): 827–838. doi: 10.1016/S0014-2921(01)00125-8
[28]	Sarkar P, Singer H W, 1991. Manufactured exports of developing countries and their terms of trade since 1965. World Development, 19(4): 333–340. doi: 10.1016/0305-750X(91)90180-P
[29]	Seers D, 1964. The mechanism of an open petroleum economy. Social and Economic Studies, 13(2): 233–242.
[30]	Shao Shuai, Qi Zhongying, 2008. Energy development and economic growth in western China: an empirical analysis based on the resource curse hypothesis. Economic Research Journal, (4): 147–160. (in Chinese)
[31]	Stijns J P C, 2005. Natural resource abundance and economic growth revisited. Resources Policy, 30(2): 107–130. doi: 10. 1016/j.resourpol.2005.05.001
[32]	Sun Dongqi, Zhang Jingxiang, Hu Yi et al., 2013. Spatial analysis of China’s eco-environmental quality: 1990-2010. Journal of Geographical Sciences, 23(4): 695–709. doi: 10.1007/s11442-013-1038-2
[33]	Tian Mao, Wu Youde, 2006. Studies on the adjustment of industrial structure of resources-exhausted city. Economic Geography, 26(4): 585–588, 597. (in Chinese)
[34]	Torvik R, 2002. Natural resources, rent seeking and welfare. Journal of Development Economics, 67(2): 455–470. doi:10.1016/S0304-3878(01)00195-X
[35]	Wick K, Bulte E H, 2006. Contesting resources-rent seeking, conflict and the natural resource curse. Public Choice, 128(3–4): 457–476. doi: 10.1007/s11127-005-9010-z
[36]	Wright G, 1990. The origins of American industrial success, 1879-1940. American Economic Review, 80(4): 651–668.
[37]	Wright G, Czelusta J, 2004. The myth of the resource curse. Challenge, 47(2): 6–38.
[38]	Wu S M, Lei Y L, 2016. Study on the mechanism of energy abundance and its effect on sustainable growth in regional economies: a case study in China. Resources Policy, 47: 1–8. doi: 10.1016/j.resourpol.2015.10.006
[39]	Wu Yingmei, Zhang Lei, Li Ya et al, 2006. Spatial-temporal effects of energy system in west china and development strategies. Resources Science, 28(5): 114–119. (in Chinese)
[40]	Zhang Jing, Li Chenggu, 2012. The evolution of urban-rural relationship in central cities of China during transformation period. Acta Geographica Sinica, 67(8): 1021–1030. (in Chinese)
[41]	Zhang Yingxi, Xia Jiechang, 2013. Interregional openness and local growth in service-based on the dynamic analysis of provincial panel data. Industrial Economics Research, (5): 35–44, 103. (in Chinese)
[42]	Zhu Xuexin, 2007. Empirical research on the relationship of technology innovation and economic growth. Scientific Management Research, 25(6): 25–28. (in Chinese)

Energy Abundance and China's Economic Growth:2000-2014

doi: 10.1007/s11769-017-0901-y

Abstract

References

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通讯作者: 陈斌, bchen63@163.com

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