Document Type : ORIGINAL ARTICLE
Authors
1 department of economics, university of sistan and baluchestan
2 depatment of economics, university of sistan and balucgestan
Abstract
The positive role of financial market development in reducing the effect of natural resources curse on the economic growth of countries is determined when the development of the financial sector in a country can allocate the income from natural resources to development and capital projects and in finally, lead to economic growth. Therefore, in this study, the effect of oil revenue governance on the economic growth of selected OPEC member countries was investigated, with an emphasis on the development of the banking sector, using the PVAR GMM method. For this purpose, the required data was gathered from the Global Financial Development Database (GFDD), World Development Indicators (WDI), International Monetary Fund (IMF), and the database of selected OPEC member countries (Iran, Iraq, Saudi Arabia, Kuwait, Venezuela, Nigeria, Algeria, UAE, and Libya) from 2003 to 2022, and STATA software was used to analyze the data. Results showed that the governance indicators of oil revenues and banking sector development indicators have a positive effect on economic growth. Also, oil revenues have had a significant positive effect on economic growth, but with the increase in growth of oil revenues, economic growth has decreased, indicating the existence of a curse of natural resources or Dutch disease in the countries under study. Finally, the indicators of banking sector development strengthen the positive effect of governance indicators of oil revenues on economic growth and thus reduce the negative effects of natural resources curse in mentioned countries.
Keywords
- Oil revenue governance
- banking sector development
- economic growth
- natural resource curse
- PVAR GMM model
Main Subjects
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