Oil dependence, quality of political institutions and economic growth: A panel VAR approach.

Antonakakis, N., Cunado, J., Filis, G. and Perez de Gracia, F., 2017. Oil dependence, quality of political institutions and economic growth: A panel VAR approach. Resources policy, 53 (September), 147 - 163.

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DOI: 10.1016/j.resourpol.2017.06.005

Abstract

This paper examines the resource curse hypothesis both within and between countries of different democratic footprint, based on a dynamic model that properly accounts for endogeneity issues. To achieve that, we apply a panel Vector Auto-Regressive (PVAR) approach along with panel impulse response functions to data on oil dependence variables, economic growth and several political institutional variables in 76 countries classified by different income groupings and level of development, over the period 1980–2012. Our results suggest that controlling for the quality of political institutions, and in particular the constraints to the executives, is important in rendering the resource curse hypothesis significant. Doing so, the resource curse hypothesis is documented mainly for developing economies and medium-high income countries. Specifically, when economies from the aforementioned groups are characterised by weak quality of political institutions, then oil dependence is not growth-enhancing.

Item Type:Article
ISSN:0301-4207
Uncontrolled Keywords:Resource curse; Oil dependence; Economic growth; Institutions; Panel VAR
Group:Faculty of Management
ID Code:29435
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:05 Jul 2017 15:21
Last Modified:17 Oct 2017 13:40

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