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The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration

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  • Apergis, Nicholas
  • Payne, James E.

Abstract

This study re-examines the impact of oil abundance on economic growth in a number of MENA (Middle East and North African) countries for the period 1990–2013. Given the number of economic and institutional reforms undertaken by these countries in recent years, we incorporate measures of institutional quality to evaluate if oil abundance impacts economic growth differently. The results from time-varying cointegration reveal that better institutional quality reduces the unfavorable effect of oil reserves on the performance of the real economy.

Suggested Citation

  • Apergis, Nicholas & Payne, James E., 2014. "The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration," Energy Economics, Elsevier, vol. 46(C), pages 1-9.
  • Handle: RePEc:eee:eneeco:v:46:y:2014:i:c:p:1-9
    DOI: 10.1016/j.eneco.2014.08.026
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    Keywords

    Oil curse hypothesis; Economic growth; Economic and institutional reforms; MENA countries;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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