The Impact of Financial Development Indicators on Natural Resource Markets in Middle East Countries: GMM Estimate

The abundance of natural resources in oil-rich countries has a dual role in the economy of these countries, in such a way that if natural resources are spent in order to improve economic infrastructure, economic growth will increase and otherwise would cause Dutch disease. One of the necessary prerequisties in directing the income stream from the sail of oil is financial development, which can play an important role in directing the income from the use of natural resources toward high added value. So the main objective of study was to investigate the effect of financial development on the natural resource market of Mena countries. in order to achieve the objectives of this study, the statistics of Mena countries (14 selected countries) during 2000-2020 and econometric approach of generalized method of generalized method are used. The results showed that financial development has a negative and significant effect on the rent of natural resources, energy consumption and share of agricultural products, so the effect of efficiency prevails over the effect of scale and effective financial development can provide the basis for dynamic economic growth. Industrialization has a positive and significant effect on the natural gas rent and the share of agricultural sector and negative effect on per capita energy consumption. therefore, the more the share of industry in gross domestic product increases, energy consumption per person decreases and natural resources rent has increased due to increased demand for efficient exploitation of natural resources. urbanization has a positive and significant effect on the share of agricultural products and energy consumption per capita and has no significant effect on natural resources rent. Therefore, directing toward high value added activities in the form of effective financial development, utilization of urban scale and industry development based on new technology are the most important factors for reducing the vulnerability of this group of economies.