Natural resources rents-financial development nexus: Evidence from sixteen developing countries

Seda Yıldırım, Ayfer Gedikli, Seyfettin Erdoğan and Durmuş Çağrı Yıldırım

Resources Policy, 2020, vol. 68, issue C

Abstract: Improving economic growth performance is largely dependent on financial development. Natural resource revenues are among the main sources that can be used in the development of financial systems. The aim of this study is to analyze the effects of each natural resource revenue on financial development in 16 developing countries (Albania, Argentina, Brazil, Bulgaria, China, Colombia, Georgia, Iran, Kazakhstan, Malaysia, Mexico, Peru, Romania, South Africa, Thailand, and Turkey) which gain different natural resources revenue using the data of 1994–2017 period. Panel cointegration analysis was used to investigate long-term relationships between series. Long-term relationships between the series were determined and then PMG and DFE methods were preferred to obtain long-term and short-term coefficients. Empirical results showed that an increase in oil revenues has a positive effect on financial development in the long term. However, in the short-term natural resources rents do not have an impact on financial development.

Keywords: Natural resources rents; Financial development; Panel cointegration; Panel ARDL (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (57)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420719310323
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:68:y:2020:i:c:s0301420719310323

DOI: 10.1016/j.resourpol.2020.101705

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().