Quarterly Journal of Quantitative Economics

Current Issue

By Issue

By Author

By Subject

Author Index

Keyword Index

About Journal

Aims and Scope

Editorial Board

Publication Ethics

Indexing and Abstracting

Related Links

FAQ

Peer Review Process

The Interaction of Oil Revenue with the Governance Index on the Formation of Physical Capital

Document Type : Research Paper

Authors

1 Professor, Department of Economics, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran,

2 MA in Economics, Faculty of Economics and Social Science, Bu-Ali Sina University, Hamedan, Iran

3 PHD Candidate of Economics, Faculty of Economics and Social Sciences, Bu-Ali Sina University, Hamedan, Iran.

Abstract

Increasing investment and achieving higher economic growth rates is the primary goal of the economic systems. Potentially, the natural resources, especially oil, can be very beneficial in economic development and creating resources for investment. But, on the other hand, the impact of natural resources abundance on the investment depends on the specific institutional and political characteristics of each country. Therefore, the present study addresses the interaction of the Governance Index with the abundance of natural resources on the formation of physical capital in the net fuel export countries during the period of 2002-2016 using PMG model. The results of the study show that the interaction of oil revenue with the indicators of the right to comment and accountability, political stability, government effectiveness, rule of law, quality of laws and regulations and control of corruption on the formation of physical capital has a positive and significant effect in long-term and insignificant in the short-term. Also, based on the results of the long-term estimation, gross domestic product per capita (GDP) and degree of economic freedom have a positive and significant effect and the effect of real interest rates on the formation of physical capital is negative and significant. In the short-term, in one hand real interest rate found to be ineffective and on the other hand GDP and degree of economic freedom found to have a positive and significant impact on the capital formation.

Keywords

References
-         برانسون، ویلیام اچ. (1387). تئوری و سیاست­های اقتصاد کلان. ترجمه­ی عباس شاکری. چاپ دوازدهم. تهران: نشر نی.## حسین زاده بحرینی، محمدحسین. (1383). «عوامل مؤثر بر امنیت سرمایه‌گذاری در ایران». جستارهای اقتصادی، 1(2): 154-109. ##حسینی، جعفر و علی طاهری فرد. (1390). «بررسی امکان­پذیری توسعه بر پایه منابع طبیعی». فرآیند مدیریت و توسعه، 24(77): 108-91. ##شاه­آبادی، ابوالفضل و عبدالله پورجوان. (1389). «حکمرانی، رقابت­پذیری و رشد اقتصادی کشورهای منتخب». راهبرد توسعه، (22): 168-129. ##شاه­آبادی، ابوالفضل و هانی دهقانی احمدآباد. (1391). «تأثیر عوامل نهادی بر رشد اقتصادی کشورهای عضو گروه D8». فصلنامه­ی اقتصاد و تجارت نوین، 6(21-22): 75-49. ##شاه­آبادی، ابوالفضل، آمنه جامه بزرگی و سارا ساری گل. (1389). «بررسی نقش حکمرانی بر سرمایه­گذاری داخلی کشورهای منطقه منا طی دوره زمانی (2000-2009)». همایش منطقه­ای اقتصاد و مدیریت، نوزده اسفند، دانشگاه پیام نور مرکز میانه. ##شاه­آبادی، ابوالفضل و حامد صادقی. (1392). «مقایسه اثر وفور منابع طبیعی بر رشد اقتصادی ایران و نروژ». مدلسازی اقتصادی، 7(22): 44-21. ##عباسی نژاد، حسین و حمید یاری. (1386). «بررسی اثرگذاری نرخ سود تسهیلات بانکی بر سرمایه­گذاری بخش خصوصی در افق بلندمدت ایران». مجله تحقیقات اقتصادی، 42(4): 158-139. ##عزیز نژاد، صمد و محمدقلی یوسفی. (1388). «بررسی عوامل تعیین­کننده سرمایه­گذاری خصوصی در ایران با روش خود توضیح برداری». فصلنامه­ی پژوهش­های اقتصادی، 9(1): 100-79. ##قره­باغیان، مرتضی. (1380). اقتصاد رشد و توسعه. تهران. چاپ دوم. تهران: نشر نی. ##میدری، احمد و جعفر خیرخواهان. (1383). حکمرانی خوب بنیان توسعه. چاپ اول، تهران: مرکز پژوهش­های مجلس شورای اسلامی. ##میرشجاعیان حسینی، حسین و فرهاد رهبر. (1390). «شناخت روابط علی میان مؤلفه‌های حکمرانی خوب در کشورهای در مخاطره منابع طبیعی». نامه مفید، 17(87): 86-67. ##
-       Akanbi, O.A. (2012). Role of Governance in Explaining Domestic Investment in Nigeria. South African Journal of Economics, Vol. 80(4), pp: 473-489. ##Auty, R.M. (2007). Natural Resources, Capital Accumulation and The Resource Curse. Ecological Economics, Vol. 61(4), pp: 627-634. ##Barro, R.J. (1996). Democracy and Growth. Journal of Economic Growth, Vol. 1(1), pp:1-27. ##Baltagi, B.H. (2005). Economic Analysis of Panel Data. Third Edition, John Wiley & Sons, England. ##Bello, A.K. (2013). Role of Governance on Private Domestic Investment Mobilization in Nigeria: A Confirmatory Analysis. Journal of Transformative Entrepreneurship, Vol. 1(1), pp: 50-65. ##Blanco, L. & R. Grier. (2012). Natural Resource Dependence and the Accumulation of Physical and Human Capital in Latin America. Resources Policy, Vol. 37(3), pp: 281-295. ##Ferranti, D., G.E. Perry, D. Lederman & W.F. Maloney. (2002). From Naturlal Resources to the knowledge Economy. Trade and Job Quality, World Bank Latin American and Caribbean Studies. ##Globerman, S., D. Shapiro & Y. Tang. (2006). Foreign Direct Investment in Emerging and Transition European Countries. In Emerging European Financial Markets: Independence and Integration Post-Enlargement (pp. 431-459). Emerald Group Publishing Limited. ##Gylfason, Th. (2001). Naturale Resource and Economic Growth: What is the CONNECTION?. Cesifo Working Paper. No. 530. ##Gylfason, Th. & Z. Gylfi. (2002). Naturale Resource and Economic Growth: The Role of Investment. Working Papers, Central Bank of Chile. ##Gylfason, T. (2011). Natural Resource Endowment: A Mixed Blessing? (No. 3353). CESifo Working Paper: Resources and Environment Economics. ##Hirschman, A.O. (1958). The Strategy of Economic Development. New Haven CT: Yale University Press. ##Im, K.S., M.H. Pesaran & Y. Shin. (2003). Testing for Unit Roots in Heterogeneous Panels. Journal of econometrics, Vol. 115(1), pp: 53-74. ##Kao, C. (1999). Spurious Regression and Residual-Based Tests for Cointegration in Panel Data. Journal of Econometrics, Vol. 90(1), pp: 1-44. ##Kaufmann, D., A. Kraay & M. Mastruzzi. (2008). Governance Matters VII: Aggregate and Individual Governance Indicators 1996-2007 (No. 4654). The World Bank. ##Khan, M.S. & C.M. Reinhart. (1990). Private Investment and Economic Growth in Developing Countries. World Development, Vol. 18(1), p: 19-27. ##Krueger, A.O. (1983). The Effects of Trade Strategies on Growth. Finance and Development, Vol. 20(2), pp: 6-16. ##Kumar Narayan, P. (2008). An Econometric Model of The Investment and CGE Model of The Impact of Democracy on Investment and Economic Growth in Fiji. International Journal of Social Economics, Vol. 3(12), pp: 1031-1071. ##Lee, J.W. (1995). Capital Goods Imports and Long-Run Growth. Journal of Development Economics, Vol. 48(1), pp:91-110. ##Michaelides, P.G., A. Belegri-Roboli, G. Economakis & J.G. Milios. (2005). The Determinants of Investment Activity in Greece (1960-’99) (No. 74548). University Library of Munich, Germany. ##Odhiambo, N.M. (2009). Saving and Economic Growth in South Africa: A Multivariate Causality Test. Journal of Policy Modeling, Vol. 31(5), pp: 708-718. ##Pesaran, M.H. (2004). General Diagnostic Tests for Cross Section Dependence in Panels. IZA Discussion papers 1240. Institute for the Study of Labor (IZA). ##Pesaran, M.H. (2007). A Simple Panel Unit Root Test in The Presence of Cross‐Section Dependence. Journal of applied econometrics, Vol. 22(2), pp: 265-312. ##Sachs, J.D. & A.M. Warner. (1995). Natural Resource Abundance and Economic Growth (No. w5398). National Bureau of Economic Research. ##Su, T.D. & T.M.H. Bui. (2017). Government Size, Public Governance and Private Investment: The Case of Vietnamese Provinces. Economic Systems, Vol. 41(4), pp: 651-666. ##Ucan, O. & O. Ozturk. (2011). Financial Determinants of Investment for Turkey. Journal of Economic and Social Studies, 1(1); 83-110. ##Unctad, (2016). World Investments Report 2016: Transnational Corporations and The Internationalization of R&D. New York: United Nations. ##Vinh, D. (2009). Institutional Determinants of Investment in Transition Economies. Electronic copy available At: http: //ssrn.com/abstract=2025328. ##Vita, G. & A. Abbott. (2002). Are Saving and Investment Cointegrated? An ARDL Bounds Testing Approach. Economics Letters, Vol. 77(2), pp: 293-299. ##Watkins, G.C. (2006). Oil Scarcity: What have The Past Three Decades Revealed?. Energy Policy, Vol. 34(5), pp: 508-514. ##World Development Indicator. (2016). www.worldbank.org. ##World Bank. (2016). The CD of International Financial Statistics (IFS). ##Yang, J.H., W. Wang, K.L. & C.Y. Yeh. (2017). Capital Intensity, Natural Resources, and Institutional Risk Preferences in Chinese Outward Foreign Direct Investment. International Review of Economics & Finance. Vol. 55(4), pp: 259-272. ##
Quarterly Journal of Quantitative Economics
Volume 15, Issue 3 - Serial Number 58
Vol. 15, No. 3, Autumn 2018
December 2018
Pages 21-42
Files
History
  • Receive Date: 30 June 2017
  • Revise Date: 27 June 2018
  • Accept Date: 28 October 2018
Share
How to cite
Statistics