The effects of institutions and natural resources in heterogeneous growth regimes

Yacine Belarbi, Lylia Sami and Saïd Souam ()

Middle East Development Journal, 2016, vol. 8, issue 2, 248-265

Abstract: The dependence on natural resources is the subject of a wide debate in the analysis of economic growth in rentier States. Up to now, there is no consensus about the way natural resources could impede or boost the economic development of such endowed countries. The same mitigated results are found concerning the interaction between institutions and growth. In this paper, we examine the combined interaction effects of natural resource dependence and the quality of institutions on economic growth by using a panel threshold regression methodology. We show that the effect of natural resource dependence on economic growth becomes positive when the quality of institutions improves. Moreover and contrary to many precedent results in the literature, it appears that an increase in natural resource dependence wipes out the positive effect of institutional quality on growth. Indeed, a positive variation of the quality of institutions does not necessarily lead to a positive variation in economic growth.

Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1080/17938120.2016.1225454 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Effects of Institutions and Natural Resources in Heterogeneous Growth Regimes (2016)
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:taf:rmdjxx:v:8:y:2016:i:2:p:248-265

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rmdj20

DOI: 10.1080/17938120.2016.1225454

Access Statistics for this article

Middle East Development Journal is currently edited by Raimundo Soto

More articles in Middle East Development Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().