Governance, Resources and Growth

53 Pages Posted: 5 Jan 2017 Last revised: 4 Mar 2017

See all articles by Md Al Mamun

Md Al Mamun

La Trobe University - Department of Economics and Finance

Kazi Sohag

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance

Date Written: July 7, 2016

Abstract

Using a large sample of 50 oil exporting countries, we extend the prior literature by examining the role of quality of governance (QOG) on economic growth under the condition of heterogeneity and cross-sectional independence in errors. We document that QOG is by far the most consistent driver of economic growth both in the long and short-run. Our result is robust to alternative and an inverse measure of QOG. We also investigate a number of mediating factors contributing the QOG and economic growth linkage. We show that the positive effect of QOG on economic growth works in countries with higher information communication technology (ICT) diffusion, social capital, economic globalization, and financial development (FD). We also show that the ‘resource curse’ or ‘resource blessings’ debate in growth literature is sensitive to methodological choices.

Keywords: Common correlated effects pooled (CCEP), financial development, ICT diffusion, oil resource, QOG, social capital.

JEL Classification: O43, F43.

Suggested Citation

Al Mamun, Md and Sohag, Kazi and Hassan, M. Kabir, Governance, Resources and Growth (July 7, 2016). Economic Modelling, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2892223

Md Al Mamun (Contact Author)

La Trobe University - Department of Economics and Finance ( email )

Melbourne, 3086

M. Kabir Hassan

University of New Orleans - College of Business Administration - Department of Economics and Finance ( email )

2000 Lakeshore Drive
New Orleans, LA 70148
United States

No contact information is available for Kazi Sohag

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