JOURNAL ARTICLE

REVISITING THE ROLE OF THE OIL CURSE AND ITS TRANSMISSION CHANNELS IN SHAPING PETROSTATES' GROWTH: AN EVIDENCE FROM A QUANTILE REGRESSION.

  • Published In: Singapore Economic Review, 2025, v. 70, n. 6. P. 1677 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: ERTIMI, BASEM; SARMIDI, TAMAT; KHALID, NORLIN; Ali, Mohd Helmi 3 of 3

Abstract

This paper aims to uncover the oil curse by presenting the distinctive characteristics of petrostates. Furthermore, it also clusters the countries to determine the mechanisms of oil resources by the importance of each transmission channel. Fixed and random effect models are performed, coupled with quantile regression. The results are threefold. First, oil abundance is favorable for economic growth. Second, oil dependence indirectly hinders growth by transmission mechanisms: in petrostates, the effect of indirect channel is the greatest by inhibiting human capital, the Dutch disease effect, which cripples the economic growth and by the increase in government intervention; and the institution effect turns to be positive. However, in non-petrostates, the greatest impact is experienced by different indirect channels. This study has further deepened our perception of the "oil curse" hypothesis and its transmission channels. Transmission channels determine whether natural resources are a curse or a blessing. [ABSTRACT FROM AUTHOR]

Additional Information

  • Source:Singapore Economic Review. 2025/09, Vol. 70, Issue 6, p1677
  • Document Type:Article
  • Subject Area:Environmental Sciences
  • Publication Date:2025
  • ISSN:0217-5908
  • DOI:10.1142/S0217590822500278
  • Accession Number:188319387
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