Corruption, Natural Capital and Economic Development: A Dynamic GMM Analysis

Joshua Ang and Jason Patalinghug
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Joshua Ang: Rogers State University
Jason Patalinghug: Southern Connecticut State University

Review of Economic Analysis, 2025, vol. 17, issue 1, 95-114

Abstract: "Using a dynamic panel dataset of 150 countries for the period of 2006-2018 and a two-step system GMM estimation model, this paper shows that natural resources have a positive effect on economic development while holding corruption constant. Our findings support the notion that natural resources have a positive effect on the economy of a nation. When a country has less corruption, it improves the appropriation of economic gains from natural resources which serves as natural capital that would drive further capital accumulation and further development. We also find that physical capital, human capital, and freedom from corruption show strong positive effects on economic development, controlling for other economic and institutional variables."

Keywords: "Corruption; Human Capital; Dynamic Panel Data Models; Economic Growth; Natural Resources" (search for similar items in EconPapers)
JEL-codes: O47 Q32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:17:y:2025:i:1:p:95-114

DOI: 10.15353/rea.v17i1.5608

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