Munich Personal RePEc Archive

Natural resource curse: a non linear approach in a panel of oil exporting countries

Seghir, Majda and Damette, Olivier (2013): Natural resource curse: a non linear approach in a panel of oil exporting countries.

[img]
Preview
PDF
MPRA_paper_51604.pdf

Download (632kB) | Preview

Abstract

This paper explores the idea of regime switching as a new methodological approach to bring new insights into the natural resource curse hypothesis in the case of oil exporting countries. The basic idea is that when a threshold of oil dependence is passed, the relationship between economic growth and its determinants could move smoothly from a regime to another. Relying upon the estimation of a PSTR model, our findings offer strong evidence that oil revenues non-linearly impacts economic growth and that resource curse only exists under the condition of high oil dependence. More precisely, below the level of 51% of oil dependence, oil revenues have a positive impact on economic growth, whereas above this level, it have serious drawbacks on economic growth through inefficiencies into the quality and the quantity of government expenditures.

Logo of the University Library LMU Munich
MPRA is a RePEc service hosted by
the University Library LMU Munich in Germany.