EconPapers    
Economics at your fingertips  
 

Resource Curse Hypothesis in GCC Member Countries: Evidence from Seemingly Unrelated Regression

Nasiru Inuwa (), Sagir Adamu (), Mohammed Bello Sani () and Abubakar Muhammad Saidu ()
Additional contact information
Nasiru Inuwa: Gombe State University
Sagir Adamu: Bauchi State University
Mohammed Bello Sani: Gombe State University
Abubakar Muhammad Saidu: Gombe State University

Biophysical Economics and Resource Quality, 2022, vol. 7, issue 4, 1-10

Abstract: Abstract The economies of Gulf Cooperation Council (GCC) member countries rely heavily on oil and gas for their total fiscal and export revenues. But, the level of their dependency varies considerably across member countries which pose a structural policy challenges to GCC policy makers. This study examined the effect of oil and natural gas rents on economic growth in GCC member countries during the period 1984–2021. The study applied recent bootstrap panel cointegration test and seemingly unrelated regression (SUR) method and found that oil rent has a positive and significant impact on economic growth in Kuwait and United Arab Emirate, disputing the resource curse hypothesis. Similarly, natural gas rent impacted positively on the economic growth in Bahrain and Qatar. However, oil rent exerts a negative and significant impact on economic growth in Bahrain, Qatar, and Saudi Arabia. The policy implication suggest that rents from both oil and natural gas should be used to diversify their economies by investing in areas of comparative advantage of the region’s abundant hydrocarbons such as petrochemicals and other related refined hydrocarbons industries which will, in turn, stimulates economic growth.

Keywords: Natural resources; Oil rent; Natural gas rent; Economic growth; Seemingly unrelated regression (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41247-022-00108-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:bioerq:v:7:y:2022:i:4:d:10.1007_s41247-022-00108-y

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/41247

DOI: 10.1007/s41247-022-00108-y

Access Statistics for this article

Biophysical Economics and Resource Quality is currently edited by C.A.S. Hall and U. Bardi

More articles in Biophysical Economics and Resource Quality from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2022-12-02
Handle: RePEc:spr:bioerq:v:7:y:2022:i:4:d:10.1007_s41247-022-00108-y