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Effects of Institutions and Natural Resources in a Multiple Growth Regime

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  • Yacine Belarbi

    (Centre de recherche en économie appliquée pour le développement (CREAD))

  • Lylia Sami
  • Said Souam

Abstract

The dependence to natural resource is currently the object of a wide debate in the analysis of economic growth in rentier states. In this work, we examine the interaction effect between oil resources dependence and the quality of institutions on economic growth by employing a panel threshold regression methodology. Our results show that the effect of oil resource dependence on economic growth becomes positive, as the quality of institutions improves. In other side, contrary to many precedent results in this area, an increase in oil dependence wipes out the positive effect of institutional quality on growth. Indeed, a positive variation of the institution quality doesn’t necessary lead to a positive variation in economic growth.

Suggested Citation

  • Yacine Belarbi & Lylia Sami & Said Souam, 2015. "Effects of Institutions and Natural Resources in a Multiple Growth Regime," Working Papers 905, Economic Research Forum, revised Apr 2015.
    • Handle: RePEc:erg:wpaper:905
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