effect of oil revenues on economic resistance in the oil exporting countries: a panel autoregressive Approach (PVAR)

In this study we investigate the relationship between oil revenues (Oil and gas exports) and economic resistance of oil exporting countries using panel vector autoregression (PVAR) during 1995-2015. The sample includes Algeria, Azerbaijan, Canada, Colombia, Iran, Kazakhstan, Kuwait, Mexico, Norway, Oman, Saudi Arabia, Trinidad and Tobgo, UAE and Malaysia. We calculate Brigaglio et al. (2009) index of economic resistance for oil exporting countries. The comparison of countries shows that Iran is not in a good position compared to other countries. The results indicate that the revenues from natural resources reduce economic resistance. Also results of causality test show oil revenues is cause of economic resistance in oil exporting countries.