Employment generation via natural resources: A novel perspective of Dutch disease in the employment market

• Published in: Resources policy Vol. 85; p. 103969
• Main Authors: Huo, Qixin, Huang, Yuchen, Khan, Salahuddin, Mallek, Sabrine, Wolanin, Elżbieta
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 01.08.2023; Elsevier
• Subjects: Dutch disease; Economic growth; Employment; Humanities and Social Sciences; Natural resources; Renewable energy; Resource rents; Natural resources; Renewable energy; Dutch disease; Employment; Economic growth; Resource rents
• ISSN: 0301-4207; 1873-7641
• DOI: 10.1016/j.resourpol.2023.103969

Regarding the factors influencing employment in emerging economies, the literature relatively ignored this sector. This study tends to analyze employment generation through natural resources while considering each natural resource's component. Also, this study explored the role of economic growth and renewable energy consumption in employment generation in emerging seven economies from 1989 to 2021. Using advanced panel data analysis approaches, this study found significant cointegration between the variable under consideration. Due to the data's non-normal property, this study employs the novel non-parametric approach. It concludes that economic growth and forest rents are the significant factors of employment generation in the region. However, the coal rents, natural gas rents, oil rents, and renewable energy use are significantly reducing employment generation in the selected economies. The adverse impact of these resources validates the Dutch disease in Emerging economies across the period. The results are found to be consistent and robust via bootstrap quantile regression. This study suggests policies regarding the efficient extraction of natural resources such as coal, forests, natural gas, and oil. Also, emerging economies should increase investment in the renewable sector, which reduces emissions and encourages employment. •Dutch disease phenomenon is revisited regarding employment generation in E7.•The role of renewable energy use and economic growth is considered in the model.•Novel method of moment quantile regression is employed on dataset covers 1989–2021.•Dutch disease phenomenon is found valid in terms of employment generation.•Economic growth positively and renewable's adversely affects employment generation.