Rare Earth Elements and Economic Growth: Evidence from China and the United States of America Elementos de tierras raras y crecimiento económico: evidencia de China y los Estados Unidos de América
Apuntes del Cenes, cilt.45, sa.82, ss.115-144, 2026 (ESCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 45 Sayı: 82
- Basım Tarihi: 2026
- Doi Numarası: 10.19053/uptc.01203053.v45.n82.2026.19574
- Dergi Adı: Apuntes del Cenes
- Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus, ABI/INFORM, Aerospace Database, EconLit, vLex, Directory of Open Access Journals, DIALNET, Latin America & Iberia Database (ProQuest), Materials Science & Engineering Collection (ProQuest), Technology Collection (ProQuest)
- Sayfa Sayıları: ss.115-144
- Anahtar Kelimeler: comercio internacional, crecimiento económico, desarrollo sostenible, economic growth, elementos de tierras raras, geoeconomics, geoeconomía, international trade, rare earth elements, sustainable development
- İstanbul Gelişim Üniversitesi Adresli: Evet
Özet
This study aims to evaluate the economic impacts of rare earth elements (REEs) on economic growth within a macroeconomic framework. In the contemporary global economy, REEs have evolved from mere geological resources into strategic assets that play a pivotal role in shaping economic and geopolitical dynamics. This is particularly evident in their intensive use in the production of high-technology, renewable energy systems and defense industries. Accordingly, the main objective of this study is to empirically examine the effects of REE exports and imports, together with key macroeconomic variables such as foreign direct investment (FDI) and the real effective exchange rate (ER), on economic growth. The analysis is conducted using panel data for China and the United States, covering the period 1991−2023. The econometric framework is based on a fixed effects model, and several diagnostic tests are performed to address potential issues such as heteroskedasticity, autocorrelation, multicollinearity, and cross-sectional dependence. While no evidence of heteroskedasticity or multicollinearity is found, the presence of autocorrelation and partial cross-sectional dependence means that Driscoll-Kraay standard errors must be used to obtain robust and reliable estimates. The empirical results indicate that the overall model is statistically significant, with a within R2 value of approximately 0.48, suggesting moderate explanatory power. The findings reveal that foreign direct investment, the real effective exchange rate, and REE exports have statistically significant and negative effects on economic growth. In contrast, REE imports do not exhibit a statistically significant relationship with GDP. These findings suggest that the economic effects of REEs are not inherently positive and depend on the structure of production and trade. The negative impact of REE exports indicates a low value-added export structure, while the negative effects of exchange rate movements and FDI point to structural vulnerabilities and external dependencies. From a policy perspective, the results highlight the importance of promoting value-added production, improving the quality of foreign investments, and maintaining macroeconomic stability. Future research may further explore sectoral dynamics and long-term structural transformations associated with strategic resource utilization.