Comparison of institutional quality on natural resource curse among oil exporter countries

The main objective of this research is the comparison of the role of institutional quality on natural resource curse among oil exporting countries. For this reason, the relationship between institutional quality and resource abundance along with economic growth have been investigated in two groups of major petroleum exporter (oil economies) and other oil exporter countries during the period of 1996-2007 using panel data model. The findings during the period of investigation in these countries indicate institutional quality has a positive effect and resource abundant has a negative effect on economic growth. While in oil economies, abundance of natural resources has led to decrease in institutional quality. So it has caused economic growth to more reduction. In other exporting countries, indirect effect of natural resources on economic growth through institutional quality channel is positive and it could mitigates negative impacts of resource abundant on economic growth. Therefore, it is suggested the necessity of improving the institutional quality for suitable allocation of high revenues of oil exports and to prevent of wasting economic resources in oil economies.