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Institutional foundations of export diversification patterns in oil-producing countries

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  • Omgba, Luc Désiré

Abstract

While it is well known that resource exporting countries have higher export concentration, it is lesser known that there is substantial variance in export concentration fortunes within resource-based countries. Using several estimation techniques and other sensitivity checks, this paper offers a new explanation for success and failure in export diversification patterns in oil countries, an explanation which has an institutional and political background. In measuring the number of years between the beginning of oil production and the attainment of political independence in oil developing countries, we found that the greater the number of years, the higher the degree of export diversification ceteris paribus. Our interpretation of this result is grounded in an analysis of political constraints to diversification in resource-based countries. Institutions, unfavorable to diversification, which arose from the pre-independence period, were blocked in their positive evolution by national political elites in the post-independence period. This result contributes to a better understanding of the dynamics of institutions in resource-based countries.

Suggested Citation

  • Omgba, Luc Désiré, 2014. "Institutional foundations of export diversification patterns in oil-producing countries," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 1052-1064.
  • Handle: RePEc:eee:jcecon:v:42:y:2014:i:4:p:1052-1064
    DOI: 10.1016/j.jce.2014.02.001
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    Citations

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    Cited by:

    1. Clement Anne, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers halshs-01381143, HAL.
    2. Omgba, Luc Désiré, 2015. "Why Do Some Oil-Producing Countries Succeed in Democracy While Others Fail?," World Development, Elsevier, vol. 76(C), pages 180-189.
    3. Santos, Carlos Filipe & Fuinhas, José Alberto & Marques, António Cardoso, 2014. "O nexus energia-crescimento e o nível da auto-suficiência na produção de petróleo: análise com macro painel
      [Energy-growth nexus and oil self-sufficiency: macro panel analysis]
      ," MPRA Paper 57008, University Library of Munich, Germany.
    4. Clement ANNE, 2016. "Are Commodity Price Booms an Opportunity to Diversify? Evidence from Resource-dependent Countries," Working Papers 201615, CERDI.
    5. repec:spr:jecfin:v:41:y:2017:i:2:d:10.1007_s12197-016-9352-z is not listed on IDEAS
    6. Ndambendia, Houdou, 2014. "Exports diversification and knowledge sharing from south-south and south-north economic cooperation: evidence from the Central and West Africa," MPRA Paper 71571, University Library of Munich, Germany, revised 2015.
    7. Seyyed Jafar Zonoozi & Soghra Rezai Nasab, 2015. "Assessment of Herbal Extract Industry in West Azerbaijan Province," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(7), pages 947-958, July.
    8. Luc Désiré Omgba, 2016. "On the mobilization of domestic resources in oil countries: The role of historical factors," WIDER Working Paper Series 154, World Institute for Development Economic Research (UNU-WIDER).
    9. Joseph Keneck Massil, 2015. "Fondement historique de la qualité des institutions politiques : l’expérience parlementaire à l’indépendance," EconomiX Working Papers 2015-29, University of Paris Nanterre, EconomiX.

    More about this item

    Keywords

    Export; Oil resources; Panel data; Economic history;

    JEL classification:

    • F1 - International Economics - - Trade
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F54 - International Economics - - International Relations, National Security, and International Political Economy - - - Colonialism; Imperialism; Postcolonialism

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