The Impact of Globalization and Economic Complexity on Natural Resource Rents in Mena Countries

Subject Areas : Regional Planning

Hosna Ashrafi ¹ , ali sayehmiri ^{2 *}

1 - M.a student
2 - the head of department

Received: 2021-12-16 Accepted : 2022-04-14 Published : 2022-10-04

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.‎