The Interaction of Abundance of Natural Resources Through the Governance Index and Brain Drain on Economic Complexity in the Selected Oil Countries

In the contemporary economics, knowledge is regarded as the main factor of production. There are many indicators like the economic complexity index for measuring the knowledge used in the products of a country. Due to the effect of economic complexity on the growth, development, competitiveness, and bargaining power on the one hand and the considerable gap of the economic complexity index among different selected oil- producing countries and developed countries on the other hand, the need for a scientific review of the factors determining the economic complexity to convert non-renewable resources into renewable resources among the selected oil-producing countries is necessary. The present study used the generalized moment of method (GMM) to investigate the interaction between the abundance of natural resources and governance index and the migration of elites on the economic complexity index of selected oil - producing countries during 2007-2016. The research findings indicated that the frequency of natural resources from the channel of governance has a significant positive effect while the migration of elites leaves a significant negative relationship with the economic complexity index among the selected oil-producing countries. Moreover, the research findings revealed that the political risk index has a significant negative effect on the economic complexity index and the interaction of innovation and intellectual property rights on the economic complexity index among the selected oil-producing countries was significant and positive.