Oil Rent and Financial Environment: A Cross-country Examination

Shahin Javadi, Mahmood Motevaseli, Shahin Javadi and Jahangir Yadolahi Farsi
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Shahin Javadi: Faculty of Entrepreneurship, University of Tehran, Tehran, Iran,
Mahmood Motevaseli: Faculty of Economics, University of Tehran, Tehran, Iran,
Shahin Javadi: Parliament Research Centre, Tehran, Iran,
Jahangir Yadolahi Farsi: Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 1, 298-302

Abstract: This study provides an empirical investigation to test one of the transmission channels of resource curse, i.e. financial environment. Our panel data analysis of 70 countries from 2006 to 2014 shows a negative and statistically significant association between oil rent and the quality of financial environment in developing countries, but a positive relationship in developed countries. These findings are robust when we control for other major drivers of financial environment quality, unobservable country- and time-fixed effects. In addition, our main results show that institutional quality, among other independent variables, has a major statistically significant effect on financial environment.

Keywords: Resource Curse; Oil Rents; Crowding Out; Financial Market Development (search for similar items in EconPapers)
JEL-codes: G10 H10 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-01-39

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