The effect of natural resources on sustainable development: the institutional threshold

Baghdedi Sghayri ()
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Baghdedi Sghayri: ESCT - École supérieure de commerce de Tunis

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Abstract: Many studies have been conducted to study the relationship between institutions and development. However, the relationship remains a contentious issue. The study includes 70 countries and data that characterize them, over a period from 1980 to 2020, by applying dynamic panel threshold regression following the GMM estimation technique, the choice of data is explained by the availability as well only by their relevance. Our results show the existence of a threshold relationship between institutional quality and sustainable development; similarly natural resources positively affect development provided that countries previously display a certain threshold of institutional quality which is of the order of 8.43. The impact of natural resources on sustainable development is not automatic; therefore it depends on a minimum threshold of institutional quality beyond which countries could benefit from the privileges resulting from the flow of natural resources.

Keywords: natural resources; institutions; sustainable development JEL: Q30; O13; C51; sustainable development; GMM JEL: Q30 (search for similar items in EconPapers)
Date: 2022-11-12
New Economics Papers: this item is included in nep-env
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03850152
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Published in McGill Journal of Sustainable Development Law / Revue de droit du développement durable de McGill, In press

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