The prevailing literature delivers contradictory evidence vis-a-vis the empirical association between economic growth and natural resources and geopolitical risk. Regarding, the current study re-evaluate the nexus bet...
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The prevailing literature delivers contradictory evidence vis-a-vis the empirical association between economic growth and natural resources and geopolitical risk. Regarding, the current study re-evaluate the nexus between these variables in China throughout 1985M1-2022M4. Using the Bayer-Hanck combined cointegration test, the variables are found cointegrated. Due asymmetrical data distribution, this study employed the novel Quantile-on-Quantile regression and explores the optimistic impact of natural resources on economic growth. Hence, this study validates the resource-growth assumption in the country. On the other hand, the predicted results asserted that geopolitical risk has a mixed influence on economic growth. The positive and negative impacts are evident in medium and "lower and upper" quantiles, respectively. Further, this research acknowledged the two-way causal association between the study variables. Based on the empirics, this research recommends the sus-tainable extraction and use of natural resources and the stability of political and economic risks in the country.
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