Mohammad Rezaei; Kazem Yavari; Morteza Ezzati; Mansour Etesami
Abstract
This paper examines the effect of the abundant natural resources (oil and gas) on financial repression and economic growth through the income distribution channel. The three equations which are extracted from theoretical explanations are estimated simultaneously using the three-stage least squares (3SLS) ...
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This paper examines the effect of the abundant natural resources (oil and gas) on financial repression and economic growth through the income distribution channel. The three equations which are extracted from theoretical explanations are estimated simultaneously using the three-stage least squares (3SLS) for the period 1352-1389. We have demonstrated the positive effects of natural resources on financial repression by raising the inequality. The results show that financial repression leads to lower economic growth rate, hence the main hypothesis of the study was supported, i.e. the effects of the abundant natural resources on economic growth and financial repression through the channel of distribution of income. We have also observed that the natural resource abundance have negative effects on economic growth (direct effect) and positive effects on inequality.
