EconPapers    
Economics at your fingertips  
 

Natural resource curse in oil exporting countries: A nonlinear approach

Olivier Damette and Majda Seghir ()

International Economics, 2018, vol. 156, issue C, 231-246

Abstract: This paper aims at extending the concept of conditional natural resource curse and examining the quantity as well as the quality of public spending as the main drivers of the oil curse in oil exporting countries. Using nonlinear threshold models, there is evidence in favor of non-linear relationship between oil incomes and economic performances. We show that highly oil dependent countries are more likely to experience inefficiencies in government decision and, by extension, oil revenues misallocation leading to underdevelopment. Relying on human capital as the mirror of the quantity as well as the quality of government spending in education, we find a similar pattern. The alteration in government efficiency is the main mechanism through which oil incomes lead to poor economic performances. Indeed, the direct contribution of oil incomes to total output is rather positive, even if the magnitude of this effect is likely to decrease with the relative level of oil dependence. The estimates indicate that the non-linear model is the better for explaining economic growth divergences across oil exporting countries as well as for reconciling the conflicting results from the empirical literature of the oil curse.

Keywords: C33; Q32; H52 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701717303232
Full text for ScienceDirect subscribers only

Related works:
Journal Article: Natural resource curse in oil exporting countries: A nonlinear approach (2018) Downloads
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:inteco:v:156:y:2018:i:c:p:231-246

DOI: 10.1016/j.inteco.2018.04.001

Access Statistics for this article

International Economics is currently edited by Valerie Mignon and Marcelo Olarreaga

More articles in International Economics from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2021-01-08
Handle: RePEc:eee:inteco:v:156:y:2018:i:c:p:231-246