Oil discovery, political institutions and economic diversification

Alsharif, Nouf and Bhattacharyya, Sambit (2018) Oil discovery, political institutions and economic diversification. Scottish Journal of Political Economy. ISSN 0036-9292

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Diversification is touted as a desirable policy objective for oil rich nations because it reduces exposure to volatility. However, the empirical relationship between petroleum and diversification is not well understood. Here, we test the effect of giant oil discoveries on diversification using a panel dataset of 136 countries observed over the period 1962 to 2012. We notice non-oil sector export concentration 8 years after a discovery. However, we do not observe any effect on the structure of employment in non-resource and manufacturing sectors. Democratic political institutions moderate the export and employment concentration effects of petroleum discovery.

Item Type: Article
Keywords: Oil Discovery; Political Institutions; Structural Change; Export Diversification
Schools and Departments: School of Business, Management and Economics > Economics
Subjects: H Social Sciences > HC Economic history and conditions
Depositing User: Sambit Bhattacharyya
Date Deposited: 27 Sep 2018 10:38
Last Modified: 05 Dec 2018 16:11
URI: http://srodev.sussex.ac.uk/id/eprint/79052

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