The role of economic growth and governance on mineral rents in main critical minerals countries
As the importance of critical minerals in facilitating the energy transition has grown, the present discussion has switched to examining 18 leading mineral resource-endowed countries for their economic and governance performance from 2002 to 2019 by employing a panel random effect model. The findings demonstrate the validity of the Pareto principle when studying mineral rents and economic development. The results confirm that mineral rents are positively related to GDP growth and governance levels measured by control of corruption. Trade volume and renewable energy consumption are also positively associated with mineral rents. The paper sheds some light on the socioeconomic and governance performance of resource-endowed countries. It provides policy suggestions for the development of critical minerals necessary for a sustainable energy transition.