Does the Cultural Resource Curse Exist? Evidence from China

Abstract

Utilizing cultural resources development is a popular topic. Economic development in China is expected to achieve this transformation. Based on panel data from 31 provinces in China between 2015 and 2019, this study empirically tests the impact of cultural resources on economic growth. We use a two-way fixed effects model, a moderating effect model, and a mediation effect model. The results indicate that abundant cultural resources can significantly promote overall economic growth, and this relationship still holds after robustness tests. Fixed asset investment in the cultural and tourism industries and education levels can weaken the positive impact of cultural resources on economic growth. Cultural resources can promote economic growth by increasing the number of tourists; however, some cultural resources still hinder economic growth. Regional heterogeneity exists in the impact of cultural resources on economic growth, showing an imbalance with the highest effect in the west, the second in the central area, and the lowest in the east. This study aims to promote awareness of the cultural resource curse in China.