The role of financial development in the oil-growth nexus
It is expected that possessing the natural resources could faster increases the pace of growth in natural resource endowed countries. However, history has shown that this is not the case for some resource rich countries. In the current study, hence, we assess whether more developed financial markets...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/63520/ http://psasir.upm.edu.my/id/eprint/63520/1/The%20role%20of%20financial%20development%20in%20the%20oil-growth%20nexus.pdf |
| _version_ | 1848854808474157056 |
|---|---|
| author | Moradbeigi, Maryam Siong, Hook Law |
| author_facet | Moradbeigi, Maryam Siong, Hook Law |
| author_sort | Moradbeigi, Maryam |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | It is expected that possessing the natural resources could faster increases the pace of growth in natural resource endowed countries. However, history has shown that this is not the case for some resource rich countries. In the current study, hence, we assess whether more developed financial markets can channel the revenues from oil into more productive activities and thus offset the negative effects of oil abundance on growth. To this end, we adopt the common correlated effect mean group estimator to account for the high degree of heterogeneity (because of substantial cross-sectional dependence in our data) for a core sample of 63 oil-producing countries from 1980 through 2010. The empirical results show that oil abundance affects the growth rate in output based on the degree of development in financial markets. In other words, better financial development dampens the negative impact of oil abundance on economic growth. |
| first_indexed | 2025-11-15T11:15:45Z |
| format | Article |
| id | upm-63520 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:15:45Z |
| publishDate | 2017 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-635202019-04-12T07:59:03Z http://psasir.upm.edu.my/id/eprint/63520/ The role of financial development in the oil-growth nexus Moradbeigi, Maryam Siong, Hook Law It is expected that possessing the natural resources could faster increases the pace of growth in natural resource endowed countries. However, history has shown that this is not the case for some resource rich countries. In the current study, hence, we assess whether more developed financial markets can channel the revenues from oil into more productive activities and thus offset the negative effects of oil abundance on growth. To this end, we adopt the common correlated effect mean group estimator to account for the high degree of heterogeneity (because of substantial cross-sectional dependence in our data) for a core sample of 63 oil-producing countries from 1980 through 2010. The empirical results show that oil abundance affects the growth rate in output based on the degree of development in financial markets. In other words, better financial development dampens the negative impact of oil abundance on economic growth. Elsevier 2017-06-26 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63520/1/The%20role%20of%20financial%20development%20in%20the%20oil-growth%20nexus.pdf Moradbeigi, Maryam and Siong, Hook Law (2017) The role of financial development in the oil-growth nexus. Resources Policy, 53. 164 - 172. ISSN 0301-4207; ESSN: 1873-7641 https://reader.elsevier.com/reader/sd/pii/S0301420716303439?token=070A1A7A1365E5535324A2319BC7B38C69C62D558B0F4A29FA6A4EB62594DE0F85C6A49374EC7068A98D84FCB541691F 10.1016/j.resourpol.2017.06.016 |
| spellingShingle | Moradbeigi, Maryam Siong, Hook Law The role of financial development in the oil-growth nexus |
| title | The role of financial development in the oil-growth nexus |
| title_full | The role of financial development in the oil-growth nexus |
| title_fullStr | The role of financial development in the oil-growth nexus |
| title_full_unstemmed | The role of financial development in the oil-growth nexus |
| title_short | The role of financial development in the oil-growth nexus |
| title_sort | role of financial development in the oil-growth nexus |
| url | http://psasir.upm.edu.my/id/eprint/63520/ http://psasir.upm.edu.my/id/eprint/63520/ http://psasir.upm.edu.my/id/eprint/63520/ http://psasir.upm.edu.my/id/eprint/63520/1/The%20role%20of%20financial%20development%20in%20the%20oil-growth%20nexus.pdf |