Resource abundance and financial development: Evidence from China

In this paper, we extend the debate on the resource curse by focusing on a new mechanism. Theoretically, resource abundance may have a negative influence on financial development by impacting trade openness, the demand for financial reforms, social capital accumulation and productive investments. Using provincial panel data of China, the empirical analysis confirms such a negative link between mineral resource abundance and financial development. The resource-rich regions tend to have a slower pace of financial development than resource-poor ones. Since the positive relationship between financial development and long-run growth is also confirmed by the analysis, our findings suggest that financial development constitutes an important mechanism through which resource abundance can impact economic performance.     

Aggregates in England—Economic contribution and environmental cost of indigenous supply

Aggregates represent one of the largest material flows in the UK economy; however, the importance of these minerals in underpinning economic activity is frequently not recognised. Features such as the spatial imbalance between resources and demand centres, exacerbated by changes in demographics and public perception, are placing increased pressure on the planning system to maintain supply. This paper sets out the direct and indirect economic contributions made by the indigenous aggregates industry to the English economy through Gross Value Added and employment sustained. It describes the key role of aggregates in construction activities, assesses the links between infrastructure development and economic growth. In 2005, aggregates extraction directly contributed £810 million of Gross Value Added to the English economy. Primary aggregates are, however, extracted at a cost to the environment and this cost, based on amenity value reduction, is estimated by updating previously published contingent valuation data. Estimates for the costs associated with carbon dioxide emissions are derived from values published by the European Union and, separately, by the UK Government. These two elements combined result in an environmental cost of indigenous extraction of £445 million in 2005. Additionally, an examination of the potential for a significant increase in the level of aggregate imports into England is made and the consequences assessed. This includes an evaluation of shipping costs and port capacity, and concludes that there are significant barriers to any substantial increase in the level of aggregate imports into England. As a consequence, indigenous supply is likely to predominate into the foreseeable future.     

Determinants of foreign direct investment in the mining sector in Asia: A comparison between China and India

The aim of this paper is to assess the conditions that influence foreign direct investment in the mineral industries of China and India. The paper first surveys literature on the determinants of foreign direct investment to identify key conditions, under which host countries attract mining FDI. It then builds an evaluative framework which allows for comparative analysis. The paper then comparatively evaluates the performance of foreign investment regimes that govern mineral industries in China and India. Its findings show that the overall conditions for foreign mining investment in China and India are not favourable and that substantial policy, regulatory and other changes in both countries need to be made if more investment is to flow.     

Review and challenges of policies of environmental protection and sustainable development in China

China is confronted with the dual task of developing its national economy and protecting its ecological environment. Since the 1980s, China's policies on environmental protection and sustainable development have experienced five changes: (1) progression from the adoption of environmental protection as a basic state policy to the adoption of sustainable development strategy; (2) changing focus from pollution control to ecological conservation equally; (3) shifting from end-of-pipe treatment to source control; (4) moving from point source treatment to regional environmental governance; and (5) a turn away from administrative management-based approaches and towards a legal means and economic instruments-based approach. Since 1992, China has set down sustainable development as a basic national strategy. However, environmental pollution and ecological degradation in China have continued to be serious problems and have inflicted great damage on the economy and quality of life. The beginning of the 21st century is a critical juncture for China's efforts towards sustaining rapid economic development, intensifying environmental protection efforts, and curbing ecological degradation. As the largest developing country, China's policies on environmental protection and sustainable development will be of primary importance not only for China, but also the world. Realizing a completely well-off society by the year 2020 is seen as a crucial task by the Chinese government and an important goal for China's economic development in the new century, however, attaining it would require a four-fold increase over China's year 2000 GDP. Therefore, speeding up economic development is a major mission during the next two decades and doing so will bring great challenges in controlling depletion of natural resources and environmental pollution. By taking a critical look at the development of Chinese environmental policy, we try to determine how best to coordinate the relationship between the environment and the economy in order to improve quality of life and the sustainability of China's resources and environment. Examples of important measures include: adjustment of economic structure, reform of energy policy, development of environmental industry, pollution prevention and ecological conservation, capacity building, and international cooperation and public participation.     

Decoupling analysis of water consumption and economic development of arid and semiarid regions in Northwest China

The contradiction between China's economic development, its need for resources and the protection of the environment is ctitical. Scarce water resources have resulted in a considerable bottleneck restricting the economic development of water-deficient areas. An objective evaluation of the decoupling state of water consumption and economic development has become an important indicator of regional economic sustainable development. Based on panel data from 2000 to 2017 for six provinces in the arid and semiarid regions of Northwest China, the Logarithmic Mean Divisia Index method is employed to decompose the factors of the decoupling index and establish a decoupling relationship model between water consumption and economic development. The reasons that affect the decoupling state of water resource utilization and economic development are herein discussed, and the stability of the decoupling trend is analysed. Based on the overall regional trend, the decoupling state of the arid and semiarid regions in Northwest China improved from weak to strong, but the high decoupling stability index varied among the provinces. The intensity and structure were promotional factors for decoupling water consumption and economic development, and the contribution rate of the intensity factor was higher than that of the structure factor. Income and population were inhibiting factors for decoupling water consumption and economic development, and the contribution rate of the income factor was higher than that of the population factor. Based on these results, corresponding policy recommendations are provided.