The effect of natural resources rents on institutional and policy reform: New evidence

Abdollah Khoshnoodi; Majid Dashtban Farouji; Jakob de Haan

doi:10.1016/j.resourpol.2022.102856

The effect of natural resources rents on institutional and policy reform: New evidence

Abdollah Khoshnoodi^*
, Majid Dashtban Farouji
, Jakob de Haan

^*Corresponding author for this work

Global Economics & Management

Research output: Contribution to journal › Article › Academic › peer-review

17 Citations (Scopus)

344 Downloads (Pure)

Abstract

Using cross-section, panel, and probit models for a panel of 112 countries over the 2005–2018 period, we examine the effect of natural resource rents on institutional and policy reform, proxied by the change in economic freedom measures. Our results suggest that natural resource rents have a negative and significant effect on the change in economic freedom. This finding is confirmed when we use the share of natural resources in exports as an alternative proxy for resource abundance. Distinguishing among different types of natural resources, we find that notably oil rents have a significant negative effect on changes in economic freedom.

Original language	English
Article number	102856
Number of pages	10
Journal	Resources Policy
Volume	78
Early online date	28-Jun-2022
DOIs	https://doi.org/10.1016/j.resourpol.2022.102856
Publication status	Published - Sept-2022

Keywords

Economic freedom
Natural resources rents
Quality of institutions

Access to Document

10.1016/j.resourpol.2022.102856

The effect of natural resources rents on institutional and policy reform: New evidenceFinal publisher's version, 1.11 MBLicence: Taverne

Handle.net

Persistent link

Cite this

@article{e68afdc34e8f41eea071094d293f3e54,

title = "The effect of natural resources rents on institutional and policy reform: New evidence",

abstract = "Using cross-section, panel, and probit models for a panel of 112 countries over the 2005–2018 period, we examine the effect of natural resource rents on institutional and policy reform, proxied by the change in economic freedom measures. Our results suggest that natural resource rents have a negative and significant effect on the change in economic freedom. This finding is confirmed when we use the share of natural resources in exports as an alternative proxy for resource abundance. Distinguishing among different types of natural resources, we find that notably oil rents have a significant negative effect on changes in economic freedom.",

keywords = "Economic freedom, Natural resources rents, Quality of institutions",

author = "Abdollah Khoshnoodi and Farouji, \{Majid Dashtban\} and \{de Haan\}, Jakob",

note = "Funding Information: We like to thank four reviewers for their very helpful comments on previous versions of the paper. Publisher Copyright: {\textcopyright} 2022 Elsevier Ltd",

year = "2022",

month = sep,

doi = "10.1016/j.resourpol.2022.102856",

language = "English",

volume = "78",

journal = "Resources Policy",

issn = "0301-4207",

publisher = "ELSEVIER SCI LTD",

}

TY - JOUR

T1 - The effect of natural resources rents on institutional and policy reform

T2 - New evidence

AU - Khoshnoodi, Abdollah

AU - Farouji, Majid Dashtban

AU - de Haan, Jakob

PY - 2022/9

Y1 - 2022/9

N2 - Using cross-section, panel, and probit models for a panel of 112 countries over the 2005–2018 period, we examine the effect of natural resource rents on institutional and policy reform, proxied by the change in economic freedom measures. Our results suggest that natural resource rents have a negative and significant effect on the change in economic freedom. This finding is confirmed when we use the share of natural resources in exports as an alternative proxy for resource abundance. Distinguishing among different types of natural resources, we find that notably oil rents have a significant negative effect on changes in economic freedom.

AB - Using cross-section, panel, and probit models for a panel of 112 countries over the 2005–2018 period, we examine the effect of natural resource rents on institutional and policy reform, proxied by the change in economic freedom measures. Our results suggest that natural resource rents have a negative and significant effect on the change in economic freedom. This finding is confirmed when we use the share of natural resources in exports as an alternative proxy for resource abundance. Distinguishing among different types of natural resources, we find that notably oil rents have a significant negative effect on changes in economic freedom.

KW - Economic freedom

KW - Natural resources rents

KW - Quality of institutions

UR - https://www.scopus.com/pages/publications/85132935182

U2 - 10.1016/j.resourpol.2022.102856

DO - 10.1016/j.resourpol.2022.102856

M3 - Article

AN - SCOPUS:85132935182

SN - 0301-4207

VL - 78

JO - Resources Policy

JF - Resources Policy

M1 - 102856

ER -

The effect of natural resources rents on institutional and policy reform: New evidence

Abstract

Keywords

Access to Document

Handle.net

Other files and links

Fingerprint

Cite this