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The effect of natural resources on sustainable development: the institutional threshold

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  • Baghdedi Sghayri

    (ESCT - École supérieure de commerce de Tunis)

Abstract

Many studies have been conducted to study the relationship between institutions and development. However, the relationship remains a contentious issue. The study includes 70 countries and data that characterize them, over a period from 1980 to 2020, by applying dynamic panel threshold regression following the GMM estimation technique, the choice of data is explained by the availability as well only by their relevance. Our results show the existence of a threshold relationship between institutional quality and sustainable development; similarly natural resources positively affect development provided that countries previously display a certain threshold of institutional quality which is of the order of 8.43. The impact of natural resources on sustainable development is not automatic; therefore it depends on a minimum threshold of institutional quality beyond which countries could benefit from the privileges resulting from the flow of natural resources.

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  • Baghdedi Sghayri, 2022. "The effect of natural resources on sustainable development: the institutional threshold," Post-Print halshs-03850152, HAL.
    • Handle: RePEc:hal:journl:halshs-03850152
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03850152
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    References listed on IDEAS

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    More about this item

    Keywords

    natural resources; institutions; sustainable development JEL: Q30; O13; C51; sustainable development; GMM JEL: Q30;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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