Oil Abundance and Economic Growth-A Panel Data Analysis

• Type: Article in International Scientific Journal
• Date: 2012

Authors

Torres, N (Author) Other; Óscar Afonso (Author) FEP; Soares, I (Author) FEP

Journal

Title: Energy Journal

Vol. 33 No. 2

Pages: 119-148

ISSN: 0195-6574

Publisher: International Association for Energy Economics

Indexing

ISI Web of Knowledge - 9 Citations

Scopus - 16 Citations

Other information

Authenticus ID: P-002-GR8

DOI: 10.5547/01956574.33.2.6

Abstract (EN): Using panel estimation, this paper shows that higher oil abundance does not hinder crude producers' growth. This sample controls for specificities of oil economies, but the usual cross-section 'curse' result is found it disappears allowing for unobserved effects. The chosen model controls for a potential (but unconfirmed) oil curse working through institutions, and for other growth factors such as education, which is considered by deriving real wage growth as the dependent variable. We measure the oil growth-effects through labor and capital efficiency, and as a factor of production. They are all insignificant for oil production, but rig productivity benefits growth through capital efficiency. However oil concentration only fosters growth (by reducing the capital necessary to oil exploration) significantly if there is fiscal responsibility, and in developing countries, where institutions are weaker and there is a broader scope for factor-efficiency and technological improvements arising from the oil sector

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 30