Oil Rents, Institutions and Financial Development: Case Study of selected Oil Exporting Countries

摘要: Based on the empirical evidence and researches, majority of oil dependent countries have low level financial development. So aim this study is to investigate whether rents weakens development in economies? In study, direct indirect impact rent examined using Generalized Method Moments (GMM) for 17 selected exporting countries, over period 2002-2010. The result suggests that has had a negative effect provided context weakening markets two (through institutional quality channel it) ways. Also indicates there positive significant relationship between improving necessary essential condition enhance about causes resource curse. These studies mostly tried explain slow economic growth abundant countries. But they neglected abundance paid little attention abundance. fact it could be claimed curse can also happened lead weaken country's system. According available evidence, weak most developing economies. It expressed same mechanisms, through which oil-dependent Since plays an important role 3 , examining provide new mechanism recourse course rate we examine quality) way. Examining may interpretation different levels among understanding help policymakers apply appropriate policies improve This organized 7 sections. Introduction provided, first part study. next section devoted theoretical foundations. third provides literature review. 4, model data are introduced. After estimation method described. Then results reported finally last concludes paper. Theoretical foundations: try development, following, their foundation provided. before that,