The relationship between reserves of oil endowment and economic growth from the resource curse viewpoint: a case study of oil producing countries

Abstract

This research investigated the effective economic growth determinants using a panel data set over the period 1995 to 2010 in oil-rich countries divided by the level of democracy into two groups: countries with low and high democracy. The result of OLS method rejects the curse hypothesis; however, TSLS method reveals the reserves of oil endowment has a negative effect on economic growth of low democracy countries and the curse hypothesis is approved