Oil Rent and Financial Environment: A Cross-country Examination
This study provides an empirical investigation to test one of the transmission channels of resource curse, i.e. financial environment. Our panel data analysis of 70 countries from 2006 to 2014 shows a negative and statistically significant association between oil rent and the quality of financial en...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2017-01-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/3511 |
| _version_ | 1828030005812133888 |
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| author | Shahin Javadi Mahmood Motevaseli Jahangir Yadolahi Farsi |
| author_facet | Shahin Javadi Mahmood Motevaseli Jahangir Yadolahi Farsi |
| author_sort | Shahin Javadi |
| collection | DOAJ |
| description | This study provides an empirical investigation to test one of the transmission channels of resource curse, i.e. financial environment. Our panel data analysis of 70 countries from 2006 to 2014 shows a negative and statistically significant association between oil rent and the quality of financial environment in developing countries, but a positive relationship in developed countries. These findings are robust when we control for other major drivers of financial environment quality, unobservable country- and time-fixed effects. In addition, our main results show that institutional quality, among other independent variables, has a major statistically significant effect on financial environment.
Keywords: resource curse, oil rents, crowding out, financial market development
JEL Classifications: G10; H10
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| first_indexed | 2024-04-10T14:19:55Z |
| format | Article |
| id | doaj.art-b3ab4a1bfaaa427aba6e63e3c34133d3 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:19:55Z |
| publishDate | 2017-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-b3ab4a1bfaaa427aba6e63e3c34133d32023-02-15T16:09:21ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382017-01-0171Oil Rent and Financial Environment: A Cross-country ExaminationShahin Javadi0Mahmood MotevaseliJahangir Yadolahi FarsiUniversity of TehranThis study provides an empirical investigation to test one of the transmission channels of resource curse, i.e. financial environment. Our panel data analysis of 70 countries from 2006 to 2014 shows a negative and statistically significant association between oil rent and the quality of financial environment in developing countries, but a positive relationship in developed countries. These findings are robust when we control for other major drivers of financial environment quality, unobservable country- and time-fixed effects. In addition, our main results show that institutional quality, among other independent variables, has a major statistically significant effect on financial environment. Keywords: resource curse, oil rents, crowding out, financial market development JEL Classifications: G10; H10 https://www.econjournals.com/index.php/ijefi/article/view/3511 |
| spellingShingle | Shahin Javadi Mahmood Motevaseli Jahangir Yadolahi Farsi Oil Rent and Financial Environment: A Cross-country Examination International Journal of Economics and Financial Issues |
| title | Oil Rent and Financial Environment: A Cross-country Examination |
| title_full | Oil Rent and Financial Environment: A Cross-country Examination |
| title_fullStr | Oil Rent and Financial Environment: A Cross-country Examination |
| title_full_unstemmed | Oil Rent and Financial Environment: A Cross-country Examination |
| title_short | Oil Rent and Financial Environment: A Cross-country Examination |
| title_sort | oil rent and financial environment a cross country examination |
| url | https://www.econjournals.com/index.php/ijefi/article/view/3511 |
| work_keys_str_mv | AT shahinjavadi oilrentandfinancialenvironmentacrosscountryexamination AT mahmoodmotevaseli oilrentandfinancialenvironmentacrosscountryexamination AT jahangiryadolahifarsi oilrentandfinancialenvironmentacrosscountryexamination |