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Does Oil Dependence Affect Regional Wealth? A Regional Study for the Municipalities of the State of Rio de Janeiro

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Listed:
  • Felipe de S Tavares

    (University of S o Paulo, Brazil.)

  • Alexandre Almeida

    (University of S o Paulo, Brazil.)

  • Fernando Postali

    (University of S o Paulo, Brazil.)

Abstract

The aim of this study is to analyze the regional effects of oil royalty dependence on the local economic development of municipalities of the Rio de Janeiro state. To do so, we used spatial econometric models to estimate the local and spillover effects of royalty dependence on the economic local product. The main results were derived based on the Spatial Autoregressive Combined model (SAC) estimated by Generalized Moments (GM). The study s contribution is to address the natural resource curse debate through its regional perspective by estimating the direct, spillover, and total effects of oil royalty dependence on economic product, which is a groundbreaking approach for the natural resource curse debate. The results show that both the direct and spillover effects are negative and significant, indicating that there is evidence of the presence of a regional natural resource curse in the municipalities of the Rio de Janeiro state.

Suggested Citation

  • Felipe de S Tavares & Alexandre Almeida & Fernando Postali, 2021. "Does Oil Dependence Affect Regional Wealth? A Regional Study for the Municipalities of the State of Rio de Janeiro," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 381-391.
    • Handle: RePEc:eco:journ2:2021-06-44
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    More about this item

    Keywords

    Spatial Econometrics; Natural Resource Curse; Econometrics; Spillover effects; Spatial Panel Data Models; Method of Generalized Moments;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E69 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Other
    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean

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