چکیده:
Recognition of economic growth determinants is one of the most important concerns for economists. In the oil exporting countries oil revenues play a significant role for the economy alongside with other economic growth determinants. This paper attempts to investigate the role of oil in selected oil-revenue dependent economies. Since oil revenue goes directly to public treasury and is expended by the government, government’s management for this revenue would be crucial in the economy. This paper utilizes a proposed index, as Government Savings over Oil Revenues (GSOR). The higher level of GSOR suggests that governments finance their expenses by non-oil revenues more than oil revenues, which is a better situation. Findings from a Dynamic Panel Data model and GMM estimation method, on 12 oil exporting economies during 1990-2013, show that GSOR has significant positive effect on real GDP growth.
خلاصه ماشینی:
In the oil exporting countries oil revenues play a significant role for the economy alongside with other economic growth determinants.
Findings from a Dynamic Panel Data model and GMM estimation method, on 12 oil exporting economies during 1990-2013, show that GSOR has significant positive effect on real GDP growth.
Having a look at the data of 36 countries that their oil exports during 1974-2013 averagely exceeds 20 percent of their merchandise exports, shows that the higher mentioned percentage, leads to lower economic growth (Figure 1).
The paper examines GSOR’s effect on economic growth, using a Dynamic Panel Data model on 12 selected oil exporting countries 1.
A Brief Literature Review Since the middle of twentieth century, numerous successes of new industrialized countries, like South East Asian economies, had a deep effect on ideas and theories about economic development and meanwhile, the role of government.
Again, Sachs and Warner (1999) point out that natural resource abundance may cause a false sense of security in the country and lead governments to lose sight of the need for well-advised economic management for development and growth, including free trade, bureaucratic efficiency, and institutional quality.
Eltejaei (2007, 2015) using a VAR approach has shown that financing government expenditures by non-oil revenue in Iran, has positive effects on economic growth.
Also, findings from a Dynamic Panel Data model and Arellano and Bond’s (1991) GMM estimation method, on 12 oil exporting economies during 1990-2013, show that GSOR has significant positive effect on real GDP growth.