Citation

Gyamfi, Bright Akwasi (2026) Transforming the resource curse into financial prosperity: A wavelet-based evaluation of resource conversion dynamics in Southeast Asia. International Review of Economics & Finance, 112. p. 105827. ISSN 1059-0560

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Abstract

The accelerating global transition toward sustainable development has intensified debates regarding whether natural resource abundance promotes or constrains financial development in resource-dependent economies. Existing studies largely rely on aggregate resource indicators and conventional linear approaches, overlooking the heterogeneous and time-varying effects of different resource categories on financial systems. This study examines the dynamic relationship between coal rents, mineral rents, natural gas rents, forest rents, public–private partnership investment in energy (PPIE), and financial development in selected Southeast Asian economies from 1995Q1–2021Q4, while wavelet coherence techniques are employed to capture short-, medium-, and long-run interactions across time and frequency domains. The findings reveal substantial cross-country heterogeneity in the resource–finance nexus. Coal, mineral, and natural gas rents exhibit relatively stronger positive coherence with financial development in Indonesia, while Malaysia and Thailand display predominantly finance-led dynamics. In contrast, the Philippines and Vietnam demonstrate weaker and more unstable relationships. Forest rents largely exhibit weak or negative coherence with financial development. The results further show that PPIE functions as an important transmission mechanism linking resource revenues to financial sector expansion. Nevertheless, the findings challenge resource-deterministic narratives and demonstrate that the financial outcomes of resource endowments depend critically on institutional capacity, investment mechanisms, and governance quality. These insights carry important implications for resource-rich emerging economies seeking sustainable financial development.

Item Type:	Article
Uncontrolled Keywords:	Resource curse, Financial prosperity, Southeast Asian economies, Public–private partnership investment in, energy and bivariate wavelet techniques
Subjects:	H Social Sciences > HJ Public Finance > HJ241-1620 By region or country
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	01 Oct 2026 01:54
Last Modified:	01 Oct 2026 01:54
URII:	http://shdl.mmu.edu.my/id/eprint/16747

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