Abstract

In past years there are differences between economic researchers about relationship of natural resource abundance and GDP per capita. Some of them based on empirical evidence have believe that resource abundance are inhibitors the road to GDP, while other researchers with providing evidence believe that resource abundance in itself has direct positive effect on GDP, however the interaction effect is negative. The present study investigates the relationship between natural resource abundance and GDP per capita through effects of the two groups of countries (Organization of the Petroleum Exporting Countries and NON-OPEC) over the period 1995-2012. For this purpose, the variables such as natural resource abundant, Dutch disease, economic freedom and financial capital and impact of natural resource abundant on degree of economic freedom as an institutional variable are used for interaction mechanisms. The estimation results show that in all both group of countries, natural resource abundant has positive and significant impact on GDP per capita, while interaction between economic freedom on natural resource abundance in Organization of the Petroleum Exporting Countries as a deterrent and in other groups to act as a GDP extender factors.

Keywords

• Natural Resource Abundance
• Dutch Disease
• Economic Freedom
• Financial Capital

Main Subjects

• Economic Growth
• Human Capital