Resources Policy,
Journal Year:
2024,
Volume and Issue:
91, P. 104841 - 104841
Published: March 11, 2024
This
study
aims
to
evaluate
the
role
of
two
institutional
variables
(property
rights
and
corruption)
outward-oriented
policies
(trade
capital
account
openness)
on
rents
non-renewable
natural
resources
in
Latin
America
Caribbean.
The
sample
under
involves
data
from
20
countries
during
period
1971–2019.
Thus,
we
attempt
explore
long-run
relationship
between
aforementioned
variables.
methodological
procedure
involved
checking
for
cross-sectional
dependence
evaluating
order
integration
We
have
also
verified
coefficients'
slope
homogeneity
absence
structural
breaks,
as
well
confirming
cointegration.
Finally,
estimated
model
using
techniques;
Park's
Feasible
Generalized
Least
Squares
a
new
instrumental
variable
approach
put
forward
by
Norkute
et
al.
(2021)
Cui
(2022).
Better
property
laws,
according
our
research,
benefit
rents.
In
contrast,
demonstrated
that
corruption
has
detrimental
effect,
supporting
"sand
wheel
hypothesis."
On
other
side,
findings
show
opening
trade
accounts
favorable
effect
Our
thus
serve
warning
about
need
enhance
quality
institutions
lowering
political
risk,
encouraging
upstanding
legal
principles,
combating
corruption.
Last
but
not
least,
agreement
with
Arezki
(2019),
results
clearly
support
notion
an
outward
market
orientation
impact
endowments
resources.
