On the effects of total productivity growth of economic freedom and total resource rents: The case of both natural resource rich and OECD countries

• Main Authors: Veysel ULUSOY, Cumhur TAŞ
• Format: Article
• Language: English
• Published: General Association of Economists from Romania 2017-09-01
• Series: Theoretical and Applied Economics
• Subjects: natural resources; economic freedom; total productivity growth; generalized method of moments (GMM); instrumental variables (IV) estimation
• Online Access: http://store.ectap.ro/articole/1301.pdf
• ISSN: 1841-8678; 1844-0029

The focus of the paper is to analyse the relation between institutions on cross-country economic development in Natural Resource Rich countries and OECD countries. The paper emphasizes the effects of economic freedom that interacts with total resource rents on total factor productivity, covering 30 Natural Resource Rich, 34 OECD countries in dynamic panel data for the period of 2000-2013. Findings suggest that as economic freedom increases along with resource rents, total factor productivity increases for natural resource rich countries. The results are mixed for OECD countries.