The Impact of Globalization and Economic Complexity on Natural Resource Rents in Mena Countries
Hosna Ashrafi
1
(
M.a student
)
ali sayehmiri
2
(
the head of department
)
Keywords: Globalization, Economic Complexity, Kuznets hypothesis, panel method,
Abstract :
There are several aspects of the Kuznets hypothesis that have not been sufficiently analyzed, including the sphere of globalization and the index of economic complexity, which have been severely ignored. Therefore, in this study, for the first time, using data from 1995 to 2019 and fixed effects panel method using EGLS in addition to the effect of globalization and economic complexity on natural resource rents, kuznets hypothesis using natural resource rent variable in 16 countries of MENA region has been investigated. The results show that increasing economic complexity has a negative and significant effect on natural resource rents, which reduces the natural resource rents by more than 0.14 by increasing one unit of economic complexity. In addition, the results show that GDP has a significant inverse relationship with the rent of natural resources; In such a way that with a one percent increase in GDP, the rent of natural resources decreases by more than 0.57; While the square of GDP has a positive relationship with the rent of natural resources; In such a way that with a one percent increase in GDP, the rent of natural resources increases by more than 0.06. Therefore, Kuznets's hypothesis is not true for the Mena countries. The results also show the positive impact of the globalization index on natural resource rents; In such a way that with a one percent increase in the globalization index, the rate of natural resource rents increases by more than 0.34. According to these results, and because in the process of economic development of the countries of Mena, revenues from natural resources and consequently damage to the environment increase, Governments should focus on improving institutional quality and encouraging the use of renewable energy to minimize negative impacts.
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