Resource–Economic Growth Nexus, Role of Governance, Financial Development, Globalisation and War: Dynamic Approach

16 Pages Posted: 2 Apr 2019

See all articles by Sorush Niknamian

Sorush Niknamian

Board Member of Weston A Price Foundation (WAPF), Washington DC, United States; Liberty University

Date Written: January 1, 2019

Abstract

This study reassesses the resource–economic growth nexus by incorporating several channels. Advanced panel time series techniques are used to analyse panel time series data from 1980 to 2015 in 31 oil-rich countries. Results show that oil rent augments economic growth; thus, oil rent is conducive rather than impediment for economic growth. The role of governance in economic growth is significant in the selected countries. Oil rent exerts a positive significant impact on economic growth in countries with good governance compare to countries with poor governance. Financial development is an unimportant channel in the resource–growth nexus because FD is often unable to mobilise oil rent from the government to the private sector in oil-rich countries. Globalisation is advantageous for countries and promote economic growth. Moreover, war exerts a significant negative effect on growth in the long term.

Keywords: Resource; Economic Growth; Governance; War; Cross-Sectionally Augmented Distributed Lag (CS-ARDL)

JEL Classification: H00

Suggested Citation

Niknamian, Sorush, Resource–Economic Growth Nexus, Role of Governance, Financial Development, Globalisation and War: Dynamic Approach (January 1, 2019). Available at SSRN: https://ssrn.com/abstract=3350149 or http://dx.doi.org/10.2139/ssrn.3350149

Sorush Niknamian (Contact Author)

Board Member of Weston A Price Foundation (WAPF), Washington DC, United States ( email )

NW Washington, DC 20016 USA.
Washington, WA Washington 20016
United States

Liberty University ( email )

1971 University Blvd, Lynchburg, VA 24515
Lynchburg, VA Lynchburg 24515
United States
6125035141 (Phone)

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