Effective Factors on the Quality of Governance in Countries with Natural Resource Rent: Simultaneous Panel Data Equation Approach

Document Type : Original Article

Authors

1 Associate Professor of Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University, Tehran, Iran

2 Assistant Professor of Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University, Tehran, Iran

3 M.A in Economics, Faculty of Economics and Political Sciences, Shahid Beheshti University, Tehran, Iran

Abstract

One of the most important factors effecting the economic growth and sustainable development is high quality institutions in countries. Therefore, identifying the determinants of quality of institutions, especially those related to quality of governance, will provide appropriate means to increase quality of governance. In addition, improving the quality of governance will improve the structure of government spending and improve the economic performance of countries. Therefore, the main purpose of this study is to investigate the factors affecting the quality of governance in countries with natural resource rents using simultaneous equations of panel data. In this study we have used the data of 32 countries with natural resource rent in the period of 2002-2015. The results show that GDP per capita, tax revenues and freedom of press have affected the quality of governance. Also, the quality of governance in countries with resource rent has affected economic growth by influencing the structure of government spending and human capital.

Keywords

References

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