The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies
Abstract In the contemporary global landscape, understanding the nexus between financial inclusion and natural resource abundance is crucial, especially for resource-rich nations. This study uses diagnostic tests and method of moments quantile regression to examines this interplay across Australia,...
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| Format: | Article |
| Language: | English |
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SpringerOpen
2025-01-01
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| Series: | Financial Innovation |
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| Online Access: | https://doi.org/10.1186/s40854-024-00696-2 |
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| author | Muhammad Imran Muhammad Kamran Khan Salman Wahab Bilal Ahmed Zhang Jijian |
| author_facet | Muhammad Imran Muhammad Kamran Khan Salman Wahab Bilal Ahmed Zhang Jijian |
| author_sort | Muhammad Imran |
| collection | DOAJ |
| description | Abstract In the contemporary global landscape, understanding the nexus between financial inclusion and natural resource abundance is crucial, especially for resource-rich nations. This study uses diagnostic tests and method of moments quantile regression to examines this interplay across Australia, Brazil, Canada, China, India, Russia, and the United States. We find that achieving financial inclusion is significantly challenging for countries that heavily rely on natural resources. Diversified income sources and equitable wealth distribution are essential to mitigate these challenges. Additionally, we identify a positive correlation between economic development and financial inclusion, highlighting the mutually reinforcing relationship between growth and inclusivity. Our research also reveals a notable link between adopting renewable energy and improving financial inclusion, suggesting that environmental responsibility and financial accessibility are intertwined. Foreign direct investment has nuanced impacts on financial inclusion, adding depth to our understanding. Overall, stable income from natural resources and diversified economic development emerge as key promoters of financial inclusion. These insights advocate for regionally specific policies and lay a solid foundation for future research and informed policymaking that address financial inclusion challenges and advance sustainable development. Graphical abstract |
| format | Article |
| id | doaj-art-2b263974ad7b4860ac3eb8ded3b4319b |
| institution | Kabale University |
| issn | 2199-4730 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Financial Innovation |
| spelling | doaj-art-2b263974ad7b4860ac3eb8ded3b4319b2025-01-26T12:48:43ZengSpringerOpenFinancial Innovation2199-47302025-01-0111113010.1186/s40854-024-00696-2The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economiesMuhammad Imran0Muhammad Kamran Khan1Salman Wahab2Bilal Ahmed3Zhang Jijian4School of Business, Hengxing University QingdaoDepartment of Systems Research, Faculty of Spatial Management and Landscape Architecture, Wrocław University of Environmental and Life SciencesSchool of Economics, Qingdao University QingdaoSchool of Economics, Qingdao University QingdaoSchool of Economics and Finance, Jiangsu University ZhenjiangAbstract In the contemporary global landscape, understanding the nexus between financial inclusion and natural resource abundance is crucial, especially for resource-rich nations. This study uses diagnostic tests and method of moments quantile regression to examines this interplay across Australia, Brazil, Canada, China, India, Russia, and the United States. We find that achieving financial inclusion is significantly challenging for countries that heavily rely on natural resources. Diversified income sources and equitable wealth distribution are essential to mitigate these challenges. Additionally, we identify a positive correlation between economic development and financial inclusion, highlighting the mutually reinforcing relationship between growth and inclusivity. Our research also reveals a notable link between adopting renewable energy and improving financial inclusion, suggesting that environmental responsibility and financial accessibility are intertwined. Foreign direct investment has nuanced impacts on financial inclusion, adding depth to our understanding. Overall, stable income from natural resources and diversified economic development emerge as key promoters of financial inclusion. These insights advocate for regionally specific policies and lay a solid foundation for future research and informed policymaking that address financial inclusion challenges and advance sustainable development. Graphical abstracthttps://doi.org/10.1186/s40854-024-00696-2Financial inclusionNatural resource rentsSustainable developmentEnergy consumptionForeign direct investmentMethod of moments quantile regression |
| spellingShingle | Muhammad Imran Muhammad Kamran Khan Salman Wahab Bilal Ahmed Zhang Jijian The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies Financial Innovation Financial inclusion Natural resource rents Sustainable development Energy consumption Foreign direct investment Method of moments quantile regression |
| title | The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies |
| title_full | The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies |
| title_fullStr | The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies |
| title_full_unstemmed | The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies |
| title_short | The paradox of resource-richness: unraveling the effects on financial markets in natural resource abundant economies |
| title_sort | paradox of resource richness unraveling the effects on financial markets in natural resource abundant economies |
| topic | Financial inclusion Natural resource rents Sustainable development Energy consumption Foreign direct investment Method of moments quantile regression |
| url | https://doi.org/10.1186/s40854-024-00696-2 |
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