The Volatility of Economic Growth and Oil Revenue in OPEC Countries: The Role of Financial Development

Document Type : Original Article


1 Assistant Professor of Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran, (Corresponding Author)

2 Assistant Professor of Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran

3 MA in Economics, Faculty of Economics and Administrative Sciences, University of Mazandaran



Assessment of different aspect of the relationship between natural resource abundance and economic growth seems to be necessary in order to make the appropriate economic policies. In this study, the importance and the role of financial development in the relationship between oil revenue volatility and economic growth volatility in OPEC countries will be investigated. The modeling in this research have done based on a dynamic panel model with annual data 2005-2016, and the relationship between variables is estimated by the system generalized method of moments technique. The findings indicate that oil resource abundance volatility leads to economic growth volatility in OPEC members. Also, the research shows that financial development dampens the effect of oil abundance volatility in OPEC members.


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