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The Impact of Democracy on the Relationship between Oil Revenues and Financial Development in Oil-rich Countries
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Sajjad Faraji Dizaji *   1, Abbas Teimoury2 , Mohammad Hasan Mostafavi2 |
1- Tarbiat Modares , faraji.sajjad@gmail.com
2- Tarbiat Modares |
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Abstract: (3533 Views) |
This study investigates the impact of political institutions on the relationship between oil revenues and financial development in oil-rich countries. We apply the panel data approach to information available for OPEC and OECD countries over the period 1970 to 2013. The results show that oil revenues have negative effect on financial developments in both country groups. Moreover the impact of democracy on financial development is positive and it also mitigates the negative impact of oil revenues on financial development. This indicates that countries can moderate the negative effects of oil revenues on their financial system by improving the quality of their institutions. Our results are robust to different model specifications and choice of control variables.
JEL Classification: F59, O13, O43, O52, O53
Keywords: financial development, political institutions, oil revenues, panel data, foreign investment.
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| Keywords: financial development, political institutions, oil revenues, panel data, foreign investment |
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Full-Text [PDF 1069 kb]
(1583 Downloads)
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Type of Study: Thesis(M.A.) |
Subject:
Oil-Market
Received: 2017/07/15 | Published: 2018/12/15 | ePublished: 2018/12/15
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