Marketization Process, Institutional Quality and Conditional "Resource Curse"—— An Empirical Test Based on Panel Threshold Model-质量院英文网
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Marketization Process, Institutional Quality and Conditional "Resource Curse"—— An Empirical Test Based on Panel Threshold Model

May 22, 2018
Zheng Shangzhi and Xu Jun

(Dongbei University of Finance and Economics, Dalian Liaoning 116025)


Abstract: Based on the retrospective analysis of relevant literature and the statistical observation of empirical facts, this paper proposes a conditional ‘resource curse’ hypothesis. By using the panel data of 30 Chinese provinces from 1998 to 2014, an attempt is made to verify that the “resource curse” does not exist at the provincial level in the country. On the basis of this finding, the threshold effect on the “resource curse” is examined from the multiple perspectives of marketization process in the institutional quality. And an empirical analysis is made of the ‘resource curse’ problem using the panel threshold model.The results show that: 1) There exists an obvious double threshold effect on the “resource curse” in the development of product market, and any progress in product market development can effectively reduce the adverse effects of the resource dependence on the economy; and 2) As the degree of product market development rises, so the resource dependence makes an increasingly greater impact on the economic growth in the local area.


Key words: marketization process; institutional quality; conditional “resource curse”; panel threshold model