The Interaction of Economic Complexity and Economic Freedom on Natural Resource Rents

Document Type : Original Article

Authors

1 Professor of Economics, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

2 Assistant Professor of Economics, Faculty of Management, Economics and Accounting, University of Hormozgan, Bandarabbas, Iran

3 M.A in Energy Economy, Faculty of Social Sciences and Economics, Alzahra University, Tehran, Iran

Abstract

In recent decades, many countries have gained considerable wealth by exploiting natural resources. However, this wealth has not always led to sustainable development, and in many cases, dependence on natural resources has reduced economic diversity and even led to undeveloped traps. This phenomenon, known as the curse of resources, raises important questions about how natural resources are exploited and its effects on the economic structure of countries. The aim of the present study is to examine the interaction of economic complexity and economic freedom on the rents of natural resources of selected countries producing science during the period 2000-2021, with the panel data approach. Based on the results, the dimensions of economic complexity (including technological, research and commercial complexity), economic freedom and the interaction of economic complexity with economic freedom have a negative and meaningful impact on the rents of natural resources in selected countries. Also, the developing countries have not performed well compared to the developed countries in terms of technological, research and commercial complexity and require the concentration and expansion of these sectors; in the field of economic freedom, the developing countries have a poor performance compared to the developed countries.

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References

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Journal of Economics and Modelling
Volume 15, Issue 3 - Serial Number 59
December 2024
Pages 77-105

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