Investigating the role of institutional quality in relation to the abundance of natural resources on economic growth in Iran: Kalman filter approach

Bayat Baghaee, Forod; Seifipour, Roya; Mohammadi,, Teimour; Mehrabian, Azadeh

doi:10.22075/jem.2021.23863.1616

Investigating the role of institutional quality in relation to the abundance of natural resources on economic growth in Iran: Kalman filter approach

Document Type : Original Article

Authors

Forod Bayat Baghaee ¹

Roya Seifipour ¹

Teimour Mohammadi, ²

Azadeh Mehrabian ¹

¹ Department of Economics,Central Tehran Branch, Islamic Azad University, Tehran, Iran

² Department of Economics, Allameh Tabatabai University, Tehran, Iran

10.22075/jem.2021.23863.1616

Abstract

One of the most important issues in recent decades in the country is to study the impact of oil revenues on the performance of the country's economy. Some believe in the existence of oil revenues in the success of economic performance, while others believe in the backwardness of the country despite the role of oil revenues. But the agreed point is the importance of the role of institutions in the economic performance of the country.. The present study uses the method of estimating parameters with variable coefficients and Kalman filter approach to investigate the role of institutional quality on the relationship between abundance of oil revenues and economic growth in Iran for the years 1994 to 2018. According to the results; Due to the inadequate economic structure of the country, the abundance of natural resources has not been used efficiently and the abundance of resources has caused certain deviations in the economy and as a result has slowed down the growth of the economy through various channels.

Keywords

Institutional quality

resource curse

economic growth

Kalman filter approach