 Growth, institutions and oil dependence: A buffered threshold panel approachYacine Belarbi, Fayçal Hamdi, Abderaouf Khalfi and Saïd Souam () Economic Modelling, 2021, vol. 99, issue C Abstract: We examine the combined effects of oil dependence and the quality of institutions on economic growth. To do so, we introduce a new buffered threshold panel data model and apply it to 19 oil rent-dependent countries over the period 1996–2017. We show that the relationship between growth and oil-dependence is not linear. More precisely, three categories of oil-dependent countries are identified. Only countries with high-quality institutions are very stable. All the other countries have experienced a transition into a buffer zone and are potentially in a transition between two different regimes. When considering oil dependence as a threshold variable, it appears that the quality of institutions has a positive and significant effect on growth when dependence is either low or high. More interestingly, for countries with intermediate levels of oil-dependence, the quality of the institutions negatively impacts growth. Some of these countries have experienced something of an oil-dependence trap. Keywords: Economic growth; Oil dependence; Quality of institutions; Buffered threshold panel data model; Nonlinear modelling of panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:99:y:2021:i:c:s0264999321000584 DOI: 10.1016/j.econmod.2021.02.018 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.