Opening Hours:Monday To Saturday - 8am To 9pm

International Journal of Applied Economic Studies (ISSN:2345-5721)

Analysis of the Relationship between Total Natural Resources Rent and Economic Growth: The Case of Iran and MENA Countries

Categories :Uncategorized

Abstract In this paper, we examines the relationship between economic growth and total natural resources rent for the Iran and MENA economies by the using annual date set over the period of 1970-2012. Many developing countries are heavily dependent on Primary products as their main source of export revenues. The natural resources, especially oil plays an important role in the economy of developing countries and it is important to show how natural resources may affect long run economic growth and the channel which the relationship is based upon. Indeed, the oil and gas industry has been the engine of economic growth, directly affecting public development projects, the government’s annual budget, and most foreign exchange sources. In this paper, we provide GDP per capita, growth rate and total natural resources rent (%GDP), rate for Iran and MENA countries in periods of 1970-2012. The data show that for 1986, the total natural resources rents (%GDP) growth rate is 1.56 and GDP per capita growth rate is -0.36. It seems “resource curse” has happened in these year. Also, we found the same result for the MENA countries in periods of 1979 and 2008. By using ordinary least squares, we have discussed the relationship between the variables mentioned. JEL classifications: O4, Q3, O13, N15

Keywords: Economic growth, Oil, Resource curse, MENA countries