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Financial development and oil resource abundance–growth relations: evidence from panel data


Citation

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

Abstract

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.


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Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
DOI Number: https://doi.org/10.1007/s11356-017-9871-y
Publisher: Springer Verlag
Keywords: Financial development; Economic growth; Oil resource abundance; Cross-section dependence; Panel data
Depositing User: Nurul Ainie Mokhtar
Date Deposited: 26 Feb 2019 02:48
Last Modified: 26 Feb 2019 02:48
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1007/s11356-017-9871-y
URI: http://psasir.upm.edu.my/id/eprint/61885
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