Financial development and oil resource abundance–growth relations: evidence from panel data
This study investigates whether financial development dampens the negative impact of oil resource abundance on economic growth. Because of substantial cross-sectional dependence in our data, which contain a core sample of 63 oil-producing countries from 1980 through 2010, we use the common correlate...
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| Format: | Article |
| Language: | English |
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Springer Verlag
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/61885/1/Financial%20development%20and%20oil%20resource%20abundance.pdf |
| _version_ | 1825932405293187072 |
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| author | Law, Siong Hook Moradbeigi, Maryam |
| author_facet | Law, Siong Hook Moradbeigi, Maryam |
| author_sort | Law, Siong Hook |
| collection | UPM |
| description | This study investigates whether financial development dampens the negative impact of oil resource abundance on economic growth. Because of substantial cross-sectional dependence in our data, which contain a core sample of 63 oil-producing countries from 1980 through 2010, we use the common correlated effect mean group (CCEMG) estimator to account for the high degree of heterogeneity and drop the outlier countries. The empirical results reveal that oil resource abundance affects the growth rate in output contingent on the degree of development in financial markets. More developed financial markets can channel the revenues from oil into more productive activities and thus offset the negative effects of oil resource abundance on economic growth. Thus, better financial development can reverse resource curse or enhance resource blessing in oil-rich economies. |
| first_indexed | 2024-03-06T09:41:31Z |
| format | Article |
| id | upm.eprints-61885 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T09:41:31Z |
| publishDate | 2017 |
| publisher | Springer Verlag |
| record_format | dspace |
| spelling | upm.eprints-618852019-02-26T02:48:10Z http://psasir.upm.edu.my/id/eprint/61885/ Financial development and oil resource abundance–growth relations: evidence from panel data Law, Siong Hook Moradbeigi, Maryam This study investigates whether financial development dampens the negative impact of oil resource abundance on economic growth. Because of substantial cross-sectional dependence in our data, which contain a core sample of 63 oil-producing countries from 1980 through 2010, we use the common correlated effect mean group (CCEMG) estimator to account for the high degree of heterogeneity and drop the outlier countries. The empirical results reveal that oil resource abundance affects the growth rate in output contingent on the degree of development in financial markets. More developed financial markets can channel the revenues from oil into more productive activities and thus offset the negative effects of oil resource abundance on economic growth. Thus, better financial development can reverse resource curse or enhance resource blessing in oil-rich economies. Springer Verlag 2017-10 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61885/1/Financial%20development%20and%20oil%20resource%20abundance.pdf Law, Siong Hook and Moradbeigi, Maryam (2017) Financial development and oil resource abundance–growth relations: evidence from panel data. Environmental Science and Pollution Research, 24 (28). 22458 - 22475. ISSN 0944-1344; ESSN: 1614-7499 https://link.springer.com/article/10.1007/s11356-017-9871-y 10.1007/s11356-017-9871-y |
| spellingShingle | Law, Siong Hook Moradbeigi, Maryam Financial development and oil resource abundance–growth relations: evidence from panel data |
| title | Financial development and oil resource abundance–growth relations: evidence from panel data |
| title_full | Financial development and oil resource abundance–growth relations: evidence from panel data |
| title_fullStr | Financial development and oil resource abundance–growth relations: evidence from panel data |
| title_full_unstemmed | Financial development and oil resource abundance–growth relations: evidence from panel data |
| title_short | Financial development and oil resource abundance–growth relations: evidence from panel data |
| title_sort | financial development and oil resource abundance growth relations evidence from panel data |
| url | http://psasir.upm.edu.my/id/eprint/61885/1/Financial%20development%20and%20oil%20resource%20abundance.pdf |
| work_keys_str_mv | AT lawsionghook financialdevelopmentandoilresourceabundancegrowthrelationsevidencefrompaneldata AT moradbeigimaryam financialdevelopmentandoilresourceabundancegrowthrelationsevidencefrompaneldata |