Examining the Relationship Between Social Service Development and Oil Revenues on Social Welfare in Oil-Producing Countries

Subject Areas : Journal of Iranian Social Development Studies

mostaffa Khalil Mohammad Behineh ¹ , hosein sharifi renani ² , Munaf Marza Neama Radi ³ , saeed daeekarimzade ⁴

1 - PhD student in Economics, Isfahan branch (Khorasgan), Islamic Azad University, Isfahan, Iran
2 - Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran
3 - Assistant Professor of Economics, University of Al-Qadisiyah, Al-Diwaniyah, Iraq ,
4 - Associate Professor of Economics, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran

Received: 2024-12-29 Accepted : 2025-02-01 Published : 2025-10-05

Keywords: : Social Services, Oil Revenues, Social Welfare, Oil-Producing Countries, Quantile Regression, Sustainable Development,

Abstract :

Oil-dependent countries have always faced challenges in optimizing the utilization of oil revenues for the development of social services and the enhancement of public welfare. The impact of these resources on social welfare depends on income allocation policies and the management of oil resources. In this regard, this study uses the econometric method of quantile regression to examine the relationship between oil revenues, social service development, and social welfare from 2010 to 2023. The sample includes 12 oil-producing countries: Iran, Saudi Arabia, the United Arab Emirates, Qatar, Nigeria, Venezuela, Algeria, Kuwait, Iraq, Norway, Russia, and Kazakhstan. The main variables of the study include oil revenues, social service development, and social welfare. Additionally, control variables such as oil price volatility, economic growth, inflation, and unemployment are included in the model. The results indicate that oil revenues have a positive and significant effect on social welfare, with a stronger effect in the higher quantiles (50%, 80%, 90%) and a weaker effect in the lower quantiles (10% and 20%). Moreover, social services have a positive and significant impact across all quantiles, with a stronger effect in the lower quantiles. Lastly, economic growth had a positive effect across all quantiles, particularly in the lower quantiles. Inflation and unemployment, however, have a negative impact on social welfare, with a stronger effect in the lower quantiles. This study emphasizes the importance of proper oil resource management and effective allocation to social services for achieving sustainable development and social welfare, providing policy recommendations to this end.

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