Document Type : Research Paper
Authors
1 Department of Economics , Faculty of Economics and Administrative Sciences , University Of Mazandaran
2 university of mazandaran
Abstract
In the resource curse literature, examining the effect of natural resource revenues on financial development is considered a complex issue, and the phenomenon of the financial resource curse has attracted the attention of many researchers. The impact of natural resource revenues on a country's financial development can be influenced by factors such as Progress Technological, financial market risk, and institutional quality. It is believed that these factors can determine whether natural resources act as a blessing or a curse. Given the importance of this issue, the present study investigates the effect of natural resource revenues on financial development, the development of financial institutions and financial markets, by considering the role of three key factors— Progress Technological, financial market risk, and institutional quality—in a selected group of resource-rich developing countries over the period 2000–2021. The analysis is conducted using the Fully Modified Ordinary Least Squares (FMOLS) method.
The results show that natural resource revenues contribute to the development of financial markets, and this positive effect is further strengthened by Progress Technological and institutional quality, while financial market risk weakens the positive relationship. On the other hand, the findings indicate that although the resource curse hypothesis is confirmed in relation to the overall financial development and the development of financial institutions, Progress Technological and institutional quality reduce the intensity of this negative impact, thereby weakening the curse. In contrast, financial market risk intensifies the resource curse.
Keywords
- Financial Development
- Natural Resource Revenue
- Progress Technological
- Financial Market Risk
- Institutional Quality
Main Subjects
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