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Reconciling empirics on the political economy of the resource curse hypothesis. Evidence from long-run relationships between resource dependence, democracy and economic growth in Iran

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  • Dell’Anno, Roberto

Abstract

This paper analyzes the long-run relationships between resource dependence, democracy and per capita economic growth in Iran using the ARDL approach of cointegration (Pesaran et al. 2001). We find that resource dependence and democracy have positive, negative, or no significant effect on the long-term growth in Iranian GDP over the period 1970–2017. This multifaceted result is an additional reason to explain the lack of consensus on the empirics of the political economy of the resource curse hypothesis. We show as the interpretation of statistical tests only based on the average effect of resource dependence on economic growth may be misleading.

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  • Dell’Anno, Roberto, 2020. "Reconciling empirics on the political economy of the resource curse hypothesis. Evidence from long-run relationships between resource dependence, democracy and economic growth in Iran," Resources Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:jrpoli:v:68:y:2020:i:c:s030142072030533x
    DOI: 10.1016/j.resourpol.2020.101807
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    Cited by:

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    More about this item

    Keywords

    Resource curse; Democracy; Economic growth; Resource dependence; Iran;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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