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
N1 - Funding Information:
We like to thank four reviewers for their very helpful comments on previous versions of the paper.
Publisher Copyright:
© 2022 Elsevier Ltd
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 - http://www.scopus.com/inward/record.url?scp=85132935182&partnerID=8YFLogxK
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 -