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Spatial Linkage Between Quality Of Institution, Natural Resources Management With Gdp Per Capita In D8 Countries (Durbin Model In Panel Data)

Author

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  • Farzaneh KHALILI

    (Assistant Professor of Economics, Islamic Azad University, Abhar Branch (Corresponding Author))

  • Majid AFSHARIRAD

    (Associate Professor of Economics, Faculty of Economics, Kharazmi University, Tehran, Iran)

  • Abdolrahim HASHEMI DIZAJ

    (Assistant Professor of Management and Economics, Mohaghegh Ardabili University)

  • Mehdi YAZDANSHENAS BAHOGHOGH

    (Ph.D Candidate of Economics, Islamic Azad University, Abhar Branch)

Abstract

Suitable economic growth has always been one of the priorities of any economic system. Meanwhile, economists have tried to achieve this goal by determining the factors affecting economic growth. At first, the main emphasis was on the physical capital and labor force, and the natural resources management. However, institutional factors, including natural resource management, emerged as a determinant of economic growth. In this regard, in this paper, the effect of institutions and management of natural economic resources on GDP per capita as a proxy for economic growth have been investigated by applying spatial regression models and Durbin model in the D8 countries during the period of 1996-2019. The empirical results of model estimation showed a positive and significant effect of natural resource management on economic growth of these countries. Moreover, the effect of physical capital, human capital, foreign investment accumulation and natural resources on economic growth is positive and significant. In addition, the effect of neighborhood and spillover impact of institutional quality on the economic growth has been confirmed in D8 countries.

Suggested Citation

  • Farzaneh KHALILI & Majid AFSHARIRAD & Abdolrahim HASHEMI DIZAJ & Mehdi YAZDANSHENAS BAHOGHOGH, 2021. "Spatial Linkage Between Quality Of Institution, Natural Resources Management With Gdp Per Capita In D8 Countries (Durbin Model In Panel Data)," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 239-256, June.
    • Handle: RePEc:hrs:journl:v:xiii:y:2021:i:2:p:239-256
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    More about this item

    Keywords

    GDP Per Capita; Institutions Quality; Natural Resource Management; D8 Countries.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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