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Empirical evidence on the resource curse hypothesis in oil abundant economy

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  • Satti, Saqlain Latif
  • Farooq, Abdul
  • Loganathan, Nanthakumar
  • Shahbaz, Muhammad

Abstract

This present study investigates the relationship between natural resource abundance and economic growth for Venezuelan economy. We have applied the ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001) to examine its long run relationship amid the variables. The VECM Granger causality is applied to test the direction of causality among the variables. This study covers the period of 1971–2011.

Suggested Citation

  • Satti, Saqlain Latif & Farooq, Abdul & Loganathan, Nanthakumar & Shahbaz, Muhammad, 2014. "Empirical evidence on the resource curse hypothesis in oil abundant economy," Economic Modelling, Elsevier, vol. 42(C), pages 421-429.
    • Handle: RePEc:eee:ecmode:v:42:y:2014:i:c:p:421-429
    DOI: 10.1016/j.econmod.2014.07.020
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    More about this item

    Keywords

    Natural resource abundance; Economic growth; Cointegration;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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