Institutional Quality and Resource-Based Economic Sustainability: The Mediation Effects of Resource Governance
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Date
2022
Authors
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SN Business & Economics
Abstract
The discovery of extractive resources is associated with multiple opportunities and
unbridled optimism on achieving socio-economic development for many countries.
However, the question of how the host governments meet the expectations of indigenous
people by ensuring an ideal resource-based economic sustainability (RES) has been
receiving less research attention. Using the global panel dataset of 80 resource endowed
economies from 2010 to 2017, we postulate and empirically examine the
mediating effect of resource governance (RESOGV) on the relationship between
institutional quality (IQ) and RES. The ANOVA and post hoc ANOVA results
revealed significant disparities in terms of IQ, RESOGV, and RES among countries
with different levels of economic development, regions, and sector (mining or
petroleum). Moreover, the fixed effects (FE) and ordinary least square (OLS) results
confirmed that IQ marginally influenced RES. However, the influence was more
pronounced when it was partially (but complementarily) mediated by the RESOGV.
The paper, therefore, stresses the importance of host governments in improving the
quality of their institutions. This will ultimately help enhance their RESOGV
capabilities for attaining economic, social and environmental sustainability. The discovery of extractive resources is associated with multiple opportunities and
unbridled optimism on achieving socio-economic development for many countries.
However, the question of how the host governments meet the expectations of indigenous
people by ensuring an ideal resource-based economic sustainability (RES) has been
receiving less research attention. Using the global panel dataset of 80 resource endowed
economies from 2010 to 2017, we postulate and empirically examine the
mediating effect of the resource governance (RESOGV) on the relationship between
institutional quality (IQ) and RES. The ANOVA and post hoc ANOVA results
revealed significant disparities in terms of IQ, RESOGV, and RES among countries
with different levels of economic development, regions, and sector (mining or
petroleum). Moreover, the fixed effects (FE) and ordinary least square (OLS) results
confirmed that IQ marginally influenced RES. However, the influence was more
pronounced when it was partially (but complementarily) mediated by the RESOGV.
The paper, therefore, stresses the importance of host governments in improving the
quality of their institutions. This will ultimately help enhance their RESOGV
capabilities for attaining economic, social and environmental sustainability.The discovery of extractive resources is associated with multiple opportunities and
unbridled optimism on achieving socio-economic development for many countries.
However, the question how the host governments meet expectations of indigenous
people by ensuring an ideal resource-based economic sustainability (RES) has been
receiving less research attention. Using the global panel dataset of 80 resourceendowed
economies from 2010 to 2017, we postulate and empirically examine the
mediating effect of the resource governance (RESOGV) on the relationship between
institutional quality (IQ) and RES. The ANOVA and post hoc ANOVA results
revealed significant disparities in terms of IQ, RESOGV, and RES among countries
with different levels of economic development, regions, and sector (mining or
petroleum). Moreover, the fixed effects (FE) and ordinary least square (OLS) results
confirmed that IQ marginally influenced RES. However, the influence was more
pronounced when it was partially (but complementarily) mediated by the RESOGV.
The paper, therefore, stresses the importance of host governments in improving the
quality of their institutions. This will ultimately help enhance their RESOGV
capabilities for attaining economic, social and environmental sustainability.
Description
Keywords
Resource-based economic sustainability · Resource governance · Institutional quality · Extractive resources · Economic regions
Citation
Kansheba, J. M. P., & Marobhe, M. I. (2022). Institutional quality and resource-based economic sustainability: the mediation effects of resource governance. SN Business & Economics, 2(2), 1-24