The Resource Curse Hypothesis Revisited: Evidence from a Panel VAR

Nikolaos Antonakakis, Juncal Cuñado (), George Filis and Fernando Pérez de Gracia ()

MPRA Paper from University Library of Munich, Germany

Abstract: The objective of this paper is to revisit 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 abundance variables, economic growth and several political institutional variables in 76 countries classified by different income groupings, level of development and oil importing or exporting status, over the period 1980-2012. Our results suggest that controlling for the quality of political institutions is important in rendering the resource course hypothesis significant. Doing so, the resource curse hypothesis is documented mainly for developing economies, net oil-exporters and medium-high income countries. Specifically, when economies from the aforementioned groups are characterised by weak quality of political institutions, then oil abundance is not growth-enhancing.

Keywords: Resource curse; Oil abundance; Economic growth; Institutions; Panel VAR. (search for similar items in EconPapers)
JEL-codes: C33 O47 Q32 Q33 Q34 (search for similar items in EconPapers)
Date: 2015-12-15
New Economics Papers: this item is included in nep-ene and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/72085/1/MPRA_paper_72085.pdf original version (application/pdf)

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:pra:mprapa:72085

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().