Resource curse hypothesis: fresh evidence from OPEC member countries

Abstract

This study investigated the impact of natural resources on economic growth among the Organization of the Petroleum Exporting Countries (OPEC) by controlling for institutional quality and financial development during the period 2008-2018. The study applied the recent generalised method of moment estimation method proposed by Kripfganz (2019, Generalized method of moments estimation of linear dynamic panel data models. London Stata Conference, pp. 1-128). The results revealed a negative and significant impact of natural resource rents on economic growth. However, oil rents showed a positive and statistically significant impact on economic growth. Similarly, institutional quality has been found to have positive and significant contribution to economic growth. Finally, financial development has also been found to have positive and significant impact on economic growth of the OPEC member countries.

How government green investment affects the carbon emission reduction process: empirical evidence from prefecture-level cities in China

“…The inability of high-energy-abundant regions to reduce CEs due to their reliance on non-renewable resources and high carbonization of industrial structures is known as the 'resource curse'. Numerous studies have been conducted on the theory and demonstration of the 'resource curse' (Inuwa et al, 2021;Wu et al, 2021;Inuwa et al, 2022). Some scholars believe that the phenomenon of the "resource curse" does not exist in all resource-rich regions but only in those with the government system design flaws (Bulte, 2005).…”