The natural resources curse: an empirical test of a sample of oil countries using dynamic panel models
Keywords:
oil countries, the curse of natural resources, dynamic panal models, GMM
Abstract
This study attempted to empirically test the exposure of a sample of 30 oil-producing countries to the so-called natural resource curse. The study was based on extended panel data over the period 1996-2017 and using dynamic panel models and the GMM estimation method. The natural resource rent as a percentage of GDP has been adopted as an indicator of natural resource abundance. The results of the estimation show that the oil resource rent has a positive impact on GDP per capita, since each 1% increase in the volume of the oil resource rent corresponds to a 0.03% increase in income per capita GDP, with the stability of all other factors, and the Natural Resource Rent parameter is significant at the 10% level, which means that the oil resource curse has no effect on economic growth in the thirty oil-producing countries included in the study .
References
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2. Henri, P. A. O. (2019). Natural resources curse: A reality in Africa. Resources policy, 63, 101406.
3. Sachs, J. D., & Warner, A. (1995). Natural resource abundance and economic growth.
4. Sachs, J. D. (2007). How to handle the macroeconomics of oil wealth. Escaping the resource curse, 180.
5. Auty, R., & Warhurst, A. (1993). Sustainable development in mineral exporting economies. Resources Policy, 19(1), 14-29.
6. Gylfason, T., Herbertsson, T. T., & Zoega, G. (1999). A mixed blessing: natural resources and economic growth. Macroeconomic dynamics, 3(2), 204-225.
7. Gylfason, T. (2000). Resources, agriculture and economic growth in economies in transition. Agriculture and Economic Growth in Economies in Transition (July 2000).
8. Mehlum, H., Moene, K., & Torvik, R. (2006). Cursed by resources or institutions?. World Economy, 29(8), 1117-1131.
9. Nili, M., & Rastad, M. (2007). Addressing the growth failure of the oil economies: The role of financial development. The Quarterly Review of Economics and Finance, 46(5), 726-740.
10. Sachs, J. D., & Warner, A. M. (1997). NATURAL RESOURCE ABUNDANCE AND ECONOMIC GROWTH.
11. Sachs, J. D., & Warner, A. M. (1999). The big push, natural resource booms and growth. Journal of development economics, 59(1), 43-76.
12. Sachs, J. D., & Warner, A. M. (2001). The curse of natural resources. European economic review, 45(4-6), 827-838.
13. Gylfason, T. (2001). Natural resources, education, and economic development. European economic review, 45(4-6), 847-859.
14. Atkinson, G., & Hamilton, K. (2003). Savings, growth and the resource curse hypothesis. World development, 31(11), 1793-1807.
15. Gylfason, T., & Zoega, G. (2006). Natural resources and economic growth: The role of investment. World Economy, 29(8), 1091-1115.
16. Dietz, S., Neumayer, E., & De Soysa, I. (2007). Corruption, the resource curse and genuine saving. Environment and Development Economics, 12(1), 33-53.
17. Lederman, D., & Maloney, W. F. (2007). Neither curse nor destiny: Introduction to natural resources and development. Natural resources: Neither curse nor destiny, 1-14.
18. Bornhorst, F., Gupta, S., & Thornton, J. (2008). Natural resource endowments, governance, and the domestic revenue effort: evidence from a panel of countries.
19. Brunnschweiler, C. N., & Bulte, E. H. (2008). The resource curse revisited and revised: A tale of paradoxes and red herrings. Journal of environmental economics and management, 55(3), 248-264.
20. Alexeev, M., & Conrad, R. (2009). The elusive curse of oil. The review of Economics and Statistics, 91(3), 586-598.
21. Blanco, L., & Grier, R. (2012). Natural resource dependence and the accumulation of physical and human capital in Latin America. Resources Policy, 37(3), 281-295.
22. Apergis, N., & Payne, J. E. (2014). The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration. Energy Economics, 46, 1-9.
23. Farhadi, M., Islam, M. R., & Moslehi, S. (2015). Economic freedom and productivity growth in resource-rich economies. World Development, 72, 109-126.
24. Cockx, L., & Francken, N. (2016). Natural resources: A curse on education spending? Energy Policy, 92, 394–408.
25. Dwumfour, R. A., & Ntow-Gyamfi, M. (2018). Natural resources, financial development and institutional quality in Africa: is there a resource curse?. Resources Policy, 59, 411-426.
26. James, A. (2015). The resource curse: A statistical mirage?. Journal of Development Economics, 114, 55-63.
27. Collier, P., & Hoeffler, A. (2005). Resource rents, governance, and conflict. Journal of conflict resolution, 49(4), 625-633.
28. Marie-Claire Aoun, La rente pétrolière et le développement économique des pays exportateurs, thèse de doctorat, 2008.
29. Zakane, A. (2009). L'impact des depenses d'infrastructures sur la croissance en algerie. Une approche en series temporelles multi variees (var). les cahiers du cread, 87, 27-49.
30. Solow, R. M. (1956). A contribution to the theory of economic growth. The quarterly journal of economics, 70(1), 65-94.
31. Sala-i-Martin, X. X., & Barro, R. J. (1995). Technological diffusion, convergence, and growth (No. 735). Center Discussion Paper.
32. Barro, R. J. (2003). Determinants of economic growth in a panel of countries. Annals of economics and finance, 4, 231-274.
33. Bond, S. R. (2002). Dynamic panel data models: a guide to micro data methods and practice. Portuguese economic journal, 1(2), 141-162.
34. Holtz-Eakin, D., Newey, W., & Rosen, H. S. (1988). Estimating vector autoregressions with panel data. Econometrica: Journal of the econometric society, 1371-1395.
35. Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The review of economic studies, 58(2), 277-297.
36. Yaduma, N. (2018). Investigating the oil curse in OECD and Non-OECD oil-exporting economies using green measures of income. Environment, development and sustainability, 20(6), 2725-2745.
37. Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The stata journal, 9(1), 86-136.
38. Corden, W. M., & Neary, J. P. (1982). Booming sector and de-industrialisation in a small open economy. The economic journal, 92(368), 825-848.
39. Corden, W. M. (1984). Booming sector and Dutch disease economics: survey and consolidation. oxford economic Papers, 36(3), 359-380.
40. Gelb, A. H. (1988). Oil windfalls: Blessing or curse?. Oxford university press.
Published
2022-12-25
How to Cite
hadjira, abdelmounaim. (2022). The natural resources curse: an empirical test of a sample of oil countries using dynamic panel models. Journal of Excellence for Economics and Management Research, 6(2), 393-410. https://doi.org/10.34118/jeemr.v6i2.3604
Issue
Section
Original Article
