Next Article in Journal
Household’s Perception of Water Quality and Willingness to Pay for Clean Water in Mexico City
Next Article in Special Issue
Management of Oil Revenues: Has That of Azerbaijan Been Prudent?
Previous Article in Journal
The Status and Evolution of Energy Supply and Use in Mexico Prior to the 2014 Energy Reform: An Input-Output Approach †
Previous Article in Special Issue
Examining the "Natural Resource Curse" and the Impact of Various Forms of Capital in Small Tourism and Natural Resource-Dependent Economies
Article Menu

Export Article

Open AccessArticle
Economies 2017, 5(2), 11;

Natural Resources and Productivity: Can Banking Development Mitigate the Curse?

School of Social Sciences, Universiti Sains Malaysia, Penang 11800, Malaysia
Author to whom correspondence should be addressed.
Academic Editor: Abdur Chowdhury
Received: 5 October 2016 / Revised: 8 February 2017 / Accepted: 27 March 2017 / Published: 6 April 2017
Full-Text   |   PDF [1116 KB, uploaded 6 April 2017]   |  


This paper contributes to the literature concerning the natural resource curse by exploring the role of banking development in reducing the resource curse in a natural resource-based country, Yemen. Using time series data over the period 1980–2012, we find that natural resource dependence is negatively related to productivity, and this relationship depends on the level of banking development. Increasing this level reduces the negative consequences of the natural resource curse. Therefore, policymakers should proactively encourage credit to enable the banking sector to play a more efficient intermediary role in mobilizing domestic savings and channeling them to productive investments. This will help to accumulate permanent productive wealth to enhance any diversification effort and compensate for the decline in natural resource production. View Full-Text
Keywords: natural resource curse; banking development; productivity natural resource curse; banking development; productivity

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

Share & Cite This Article

MDPI and ACS Style

Badeeb, R.A.; Lean, H.H. Natural Resources and Productivity: Can Banking Development Mitigate the Curse? Economies 2017, 5, 11.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Economies EISSN 2227-7099 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top