Institutions and Development in Oil Exporting Countries

Agricultural Marketing and Commercialization Journal

دوره 7، شماره 1، شهریور 2023، صفحه 78-93   

نوع مقاله: Original Research

نویسنده

mohammad hosein fatehi dabanlou^*

Assistant Professor in Economics, firouz kouh Branch, Islamic Azad University , Tehran, IRAN ,

چکیده

 The present paper is aimed at analyzing mutual effects of institutions and development in oil-exporting countries
(OECs). For this purpose, the mutual effects were compared between Middle Eastern and non-Middle Eastern OECs.
Three-stage least squares model was used to evaluate the model based The World Bank’s data for the 1996-2014
period, and Wald test, Kruskal–Wallis analysis, and least significant difference (LSD) test were further used. Function
of institutions has become a fundamental subject for research, and Middle Eastern countries are of particular
importance in this respect because of their outstanding geopolitical position and significant revenues those make upon
exporting oil. Obtained results indicated significant differences in mutual effects of institutions and development
between Middle Eastern and non-Middle Eastern OECs. In both groups of the countries, the effect of development on
institutions was found to be significantly greater than that of the institutions on the development. Despite similarities
in oil exporting factor, geographical environment factor, which includes similarities in culture, religion, and particular
customs, affects the mutual effect of institutions and development. In both groups, estimated impact factor of
development on institutions exceeded that of institutions on the development. As such, paying attention to the
development not only improves its indices, but also automatically improves performance of the institutions. Similar
effect is imposed by the institutions, but rate of changes resulted from the development is higher.

کلیدواژه‌ها

institutions؛ development؛ oil-exporting countries؛ Middle East

مراجع

• Acemoglu, D. & Robinson, J. A. (2008). The role of institutions in growth and development. Commission on growth and development, Working Paper No. 10.
• Acemoglu, D., Gallego, F.A. and Robinson, J.A. (2014). Institution, human capital, and development. Instituto de Economia. Pontificia Universidad Católica de Chile, Working Paper No. 449. –
• Alagh, Y.K. (2010). The food, water, and energy interlinkages for sustainable development in India. South Asian Survey, 17(1): 159-178.
• Al-Ubaydli, O. (2012). Natural resources and the tradeoff between authoritarianism and development. Journal of Economic Behavior & Organization, 81(1): 137-152.
• Amiri, Behzad (2016) Institutions and development in Islamic member states of D-8 Organization, doctoral thesis in Ecnomics, Bu-Ali Sina University, Supervised by Abolfazl Shahabadi, Ph. D.
• Asadi, Zivar; Bahrami, Javid; Talebloo, Reza (2013) Effect of resource curse on financial development and economic growth in the form of dynamic panel model, Journal of Economic Growth and Development Research, 3 (10), 9-26.
• Auty, R.M. (1994). Industrial policy reform in six large newly industrializing countries: The resource curse thesis. World development, 22(1): 11-26.
• Baltagi, Badi H. (2011). Econometrics. springer publiser. 418_420.
• Barbier, E.B. and Cox, M. (2003). Does economic development lead to mangrove loss? a cross‐country analysis. Contemporary economic policy, 21(4): 418-432.
• Baxamusa, M. and Jalal, A. (2014). The effects of corruption on capital structure: when does it matter? The Journal of Developing Areas, 48(1): 315-335.
• Bennett, Daniel, Hugo J. Faria, James D. Gwartney, and Daniel R. Orales (2017) . Economic Institutions and Comparative Economic Development: A PostColonial Perspective. World Development. (96): 503–519.
• Bloom, D.E., Canning, D. and Sevilla, J. (2004). The effect of health on economic growth: a production function approach. World development, 32(1): 1-13.
• Bloom, D.E., Canning, D. and Sevilla, J. (2005). Health and economic growth: reconciling the micro and macro evidence. Center on Democracy, Development and the Rule of Law Working Papers, 42.
• Boikos, S. (2013). Corruption, public expenditure, and human capital accumulation. The Rimini Centre for Economic Analysis, Working Paper No. 17_13.
• Cavalcanti, Tiago V. de Vand Kamiar Mohaddes and Mehdi Raissi. (2011). Growth, development and natural resources: new evidence using a heterogeneous panel analysis. The Quarterly Review of Economics and Finance, 51(4): 305-318.
• Costantini, V. and Monni, S. (2008). Environment, human development, and economic growth. Ecological Economics, 64(4): 867-880.
• Costantini, V. and Liberati, P. (2011).Technology transfer, institutions, and development. University DegliStudi, Dipartimen to Di Economia, Working Paper No 135.
• Dell, M, Jones, B.F. and Olken, B.A. (2014). What do we learn from the weather? The new climate–economy literature. Journal of Economic Literature, 52(3): 740-798.
• D`Agostino, G., Dunne, J. and Pieroni, L. (2012). Government spending, corruption, and economic growth. University of Cape Town.Southern Africa Labor and Development Research Unit (SALDRU), Working Paper No. 74.
• Ebadi, Jafar; Nikoo Nesbati, Ali (2012) Natural resources, institutions and economic growth, The Journal of Planning and Budgeting, 17(4), 12-24.
• El-Anshasy, Amany, Kamiar Mohaddes, and Jeffrey B. Nugent. (2015). Oil, Volatility, and Institutions: Cross-Country Evidence from Major Oil Producers. Cambridge Working Papers in Economics.
• Engerman, S. L., & Sokoloff, K. L. (1997). Factor endowments, institutions, and differential paths of growth among new world economies. How Latin America Fell Behind, 260-304.
• Engerman, S. L., Sokoloff, K. L., & Mariscal, E. V. (2011). The Evolution of Schooling: 1800-1925. NBER Chapters, 121-167.
• Eregha P. B, Ekundayo Peter Mesagan .2016). Oil resource abundance, institutions, and growth: Evidence from oil producing African countries. Journal of Policy Modeling 38 (2016) 603–619.
• Evsey Gurvich. (2016). Institutional constraints and economic development. Russian Journal of Economics 2, 349–374.
• Gallup, J. L., Sachs, J.D. and Mellinger, A.D. (1999). Geography and economic development. International Regional Science Review, 22(2): 179-232.
• Galor, O. (2011). Inequality, human capital formation, and the process of development. National Bureau of Economic Research. No. w17058.
• Glaeser, E.L, La Porta, R, Lopez-de-Silanes, F. and Shleifer, A. (2004). Do institutions cause growth? Journal of Economic Growth, 9(3): 271-303.
• Goult, I. F. H., & Lee, J. S. F. (1971). S. Patent No. 3,611,378. Washington, DC: U.S. Patent and Trademark Office.
• Greif, A. (2006). Institutions and the path to the modern economy: Lessons from medieval trade. Cambridge University Press.
• Guiso, L., Sapienza, P. and Zingales, L. (2006). Does culture affect economic outcomes? The journal of economic perspectives, 20(2): 23-48.
• Gurgul, H. & Lach, L. (2012). Political instability and economic growth: evidence from two decades of transition in CEE. MPRA, Working Paper No. 37792.
• Hamdi, H. and Sbia, R. (2013). Dynamic relationships between oil revenues, government spending, and economic growth in an oil-dependent economy. Economic Modelling, 35: 118-125.
• Hamoudi, A.A. and Sachs, J.D. (2000). Economic consequences of health status: A Review of the Evidence. Chicago - Graduate School of Business, Working Paper No. 30.
• Hendricks, L. (2004). Taxation and human capital accumulation. Macroeconomic Dynamics, 8(03): 310-334.
• Hugo J. Faria, Hugo M. Montesinos-Yufa, Daniel R.Moralesd, Carlos E. Navarrob .(2016) .Unbundling the roles of human capital and institutions in economic development. European Journal of Political Economy 45, 108–128
• Kloosterman ,Andrew,Andrew Schotter. (2016). Complementary institutions and economic development: An experimental study. Games and Economic Behavior. 99, 186–205.
• Komeyjani, Akbar; Salatin, Parvaneh (2008) Impact of good institutions on economic growth in selected member states of OPEC and OECD, Journal of Economic Modeling, 2(2), 1-24.
• Law, Siong Hook, Thong Cheen Lim, Normaz Wana Ismail. (2013). Institutions and economic development: A Granger causality analysis of panel data evidence. Economic Systems, 37(4): 610-624.
• Marrocu, E., and Paci, R. (2010). The effects of public capital on the productivity of the Italian regions. Applied Economics, 42(8): 989-1002.
• Mehrara, M. and Musai, M. (2013). The relationship between economic growth and human capital in developing countries. International Letters of Social and Humanistic Sciences, 5, 55-62.
• Mincer, J.A. (1996). Economic development, growth of human capital, and the dynamics of the wage structure. Journal of Economic Growth, 1(1): 29-48.
• Muye,Ibrahim Muhammad, Ibrahim Yusuf Muye.(2017).Testing for causality among globalization, institution, and financial development: Further evidence from three economic blocs.Borsa _Istanbul Review 17-2, 117_132.
• Papyrakis, E. and Gerlagh, R. (2003). Natural resources: a blessing or a curse?Fondazione Eni Enrico Mattei, Working Paper No 2003.8.
• Rodrik, D., Subramanian, A.&Trebbi, F. (2002). Institutions rule the primacy of institutions geography and integration in economic development, NBER, Working Paper No. 9305:149-160.
• Sabatini, F. (2005). Social capital as social networks. a new framework for Measurement. A New Framework for Measurement.
• Sameti, Morteza; Ranjbar, Homayoon; Mohseni, Fazilat (2011) Analysis of the impact of human development indices: case study of Association of Southeast Asian Nations (ASEAN), Journal of Economic Growth and Development Research, 1(4), 183-223.
• Selden, T.M. and Song, D. (1994). Environmental quality and development: Is there a Kuznets curve for air pollution emissions? Journal of Environmental Economics and management, 27(2):147-162.
• Sen, K. (2014). Governance and development outcomes in Asia. Asian Development Bank (ADB), Working Paper No. 384.
• Shahabadi, Abolfazl; Dehghani-AHmadabadi, Hani (2011) Effect of institutional factors on economic growth of Islamic member states of D-8 Organization, Journal of Modern Economics and Commerce, 6(21, 22), 49-75.
• Shahabadi, Abolfazl; Poorjavan, Abdollah (2012) Relationship between institutions and socioeconomic development indices in selected countries, Journal of Sociological Science, University of Mashhad, 9(2), 53-75.
• Silberberger, M. (2015). Regulation, trade and economic growth. Center for European Governance and Economic Development, Discussion Paper No. 255.
• Srithongkul, P. and Pastpipatkul, P. (2013). Impacts of economic variables and the corruption perception index on human development. Journal of The Empirical Econometrics and Quantitative Economics Letters, 2(1): 71-78.
• Subbarao, P.S. (2008). A study on foreign direct investment (FDI) in Indian tourism. In Conference on Tourism in India-Challenges Ahead, India.
• Tabellini, G. (2010). Culture and institutions: economic development in the regions of Europe. Journal of the European Economic Association, 8(4): 677–716
• Usui, N. (1997). Dutch disease and policy adjustments to the oil boom: a comparative study of Indonesia and Mexico. Resources policy, 23(4):151-162.