Empirical evidence on the resource curse hypothesis in oil abundant economy

Satti, Saqlain Latif and Farooq, Abdul and Loganathan, Nanthakumar and Muhammad, Shahbaz (2014) Empirical evidence on the resource curse hypothesis in oil abundant economy. Economic Modelling, 42 (2014). pp. 421-429. ISSN 0264-9993

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Abstract

This present study investigates the relationship between natural resource abundance and economic growth for Venezuelan economy. We have applied the ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001) to examine long run relationship amid the variables. The VECM Granger causality is applied to test the direction of causality among the variables. This study covers the period of 1971-2011. Our empirical evidence indicated that variables are found to be cointegrated. The results confirm that natural resource abundance impedes economic growth. Financial development, capital stock and trade openness enhance economic growth. The feedback hypothesis is also found between natural resource abundance and economic growth.

Item Type: Article
Additional Information: Economic Modelling is a high impact journal (Q2) with 0.736 impact factor points
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Faculty / Institute: Faculty of Economics & Management Sciences
Depositing User: Nanthakumar Loganathan
Date Deposited: 22 Sep 2014 09:06
Last Modified: 27 Apr 2015 03:11
URI: http://erep.unisza.edu.my/id/eprint/1438

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