We empirically examine the moderating role of institutional quality on resource curse effects. The estimated results provide significant evidence for the presence of spatial autocorrelation in economic growth. We also find that institutional quality affects both local and neighboring economies, with the relationship following a U-shaped pattern, and these nonlinear influences can be attributed to resource allocation effects for the former and demonstration effects for the latter. Additionally, resource endowment moderates the relationship between institutional quality and economic performance, with the modified relationship following an inverted U-shaped pattern; this influence stems from investment expansion effects and passivation effects.

This paper investigates the impact on polluting emissions as a result of manufacturing industries in China offering services as well as products. We merge detailed firm-level statistics covering 2000 to 2011, and use two-way linear fixed effects regression to control for firm and year heterogeneities and a host of control variables. The empirical results show that manufacturing servitization significantly reduces the emission intensity of firms. This effect is achieved by improving the total factor productivity of firms, optimizing the efficiency of energy use, and increasing the share of the highly-skilled labour force. Moreover, the emission reduction effect of manufacturing servitization is more profound in the eastern and central regions, pollution-intensive industries, non-state-owned firms, and processing trade firms. In addition, our extended analysis shows that the emission reduction effects of manufacturing servitization can be strengthened through trade liberalization and cohort study. The major policy implication is that governments should undertake industrial policies that reinforce the positive effects of manufacturing servitization in order to achieve win-win outcomes in manufacturing upgrading and environmental protection.

This study rigorously examines the impact of political instability (POI) on firm performance (FPER) using high-dimensional panel data from 2006 to 2022, drawn from the World Bank Enterprise Survey (WBES) for 60 economies. Using advanced machine learning-based econometric techniques, including Double-Selection LASSO Regression (DSLR) and Partialing-Out LASSO Regression (POLR), the analysis reveals that POI significantly reduces FPER across the sampled countries. These findings remain robust across a series of validation tests, including alternative estimation approaches such as Cross-Fit Partialing-Out LASSO Regression (CF-POLR) and Bayesian Model Averaging (BMA), the use of alternative FPER proxies—employment growth (FEMG), innovation (IINN), and labor productivity (FLP)—and the substitution of POI with government regulation (REG). Mediation analysis further indicates that operational costs (OCOST) and firm investment (FINV) significantly and partially mediate the total effect of POI on FPER. In contrast, financial constraints (FCST) do not emerge as a significant mediator. The moderation analysis shows that political connections (PC) substantially attenuate the negative impact of POI on FPER. Heterogeneity analyses demonstrate that small, young, and capital-intensive firms are more severely affected by POI than medium and large, older, technology-intensive, and labor-intensive firms. Additionally, firm ownership-based heterogeneity indicates that state-owned enterprises experience slightly stronger adverse effects from fluctuations in POI than non-state-owned firms. Based on these empirical insights, policymakers need to promote institutional stability and provide direct support for vulnerable young and small firms to reduce the adverse effects of POI on FPER. Ultimately, this boosts economic flexibility in politically unstable markets by managing key growth drivers.