Document Type : Research Paper

Authors

1 Faculty member, Allameh Tabatabaei University

2 M.Sc. in Economics, Faculty of Economics, Allameh Tabatabaei University

Abstract

This paper reviews the effects of institutions quality on the mechanisms that influence the turning of the blessing of oil resource revenues into a curse for Iranian economy and during 1973-2011. The main research question is that in a situation characterized by inefficient and ‎malfunctioning institutions, the injection of oil revenue into the economy, how and through which channels, will cause resource curse to happen. This paper also shows that natural resources, like oil, don't lead to disasters per se; but this is the institutional-structural framework in a country and its interaction with the rents of oil revenues that can lead to the curse of natural resources. This study is a descriptive analysis and the analysis has been carried out by using Institutionalism Approach.
According to the findings of this research, the negative effects of oil revenues in Iranian economy caused by inefficient and ‎malfunctioning infrastructures and institutions, lead to short-run and long-run decrease in economic growth and resource curse finally. In Iran, oil revenue shows its immediate effect through fiscal policy and the government's budget (oil price effect on government expenditure) and then through budget deficit, it is related to the monetary sector of the economy (great impact of oil price on liquidity).So volatility of oil revenues and the rigidity of the government budget compared with the oil revenues is one of the main channels which the resource curse have been developed in Iran and caused to liquidity growth and inflation. It has important consequences such as increasing imports, decreasing non-oil export and increasing share of value added of services sector in GDP; the increase in the share of value added of services sector in GDP is such that the service sector (mainly brokerage and intermediary services) exceeds more than 50% of Iran's GDP.

Keywords

بانک مرکزی جمهوری اسلامی ایران، بانک اطلاعات سری‌های زمانی اقتصادی، سال‌های 1390-1352.
عظیمی، حسین (1377)، مدارهای توسعه‌یافتگی در اقتصاد ایران، تهران، نشر نی.
قنبری، علی (1390)، اقتصادهای نفتی، نشر چالش.
کاتوزیان، محمدعلی (همایون) (1374)، اقتصاد سیاسی ایران؛ از مشروطیت تا پایان سلسله پهلوی، ترجمة محمدرضا عزیزی و کامبیز نفیسی، تهران، نشر مرکز.
کارل، تری لین (1388)، معمای فراوانی؛ رونق‌های نفتی و دولت‌های نفتی، ترجمة جعفر خیرخواهان، نشر نی.
گسگری، ریحانه، عیلرضا اقبالی و حمیدرضا حلافی (1383)، بی‌ثباتی صادرات نفتی و رشد اقتصادی در ایران، فصلنامه پژوهش‌های اقتصادی ایران، دانشگاه علامه طباطبایی.
مرکز آمار ایران، سالنامه‌های آماری ایران از سال 1345 تا سال 1385.
میرترابی، سعید (1387)، مسایل نفت ایران، نشر قومس، چاپ چهارم.
میرترابی، سعید (فروردین و اردیبهشت 1387)، راه‌های گوناگون توسعه در کشورهای نفت‌خیز، اطلاعات سیاسی ـ اقتصادی، ش 248-247.
Auty, R (1993), Sustaining Development in Mineral Economies: The Resource Curse Thesis, London, Routledge.
 Resource Abundance and Economic Development, Oxford University Press , Oxford.,2001
Beblawi, H. and Luciani , G.(eds), (1987),The Rentier Stat , Volume II,London:Croom Helm IDS Working
Broad, R (1995), The Political Econmy of Natural Resources: Cases of the Indonesian and Philippine Forest Sectors, Journal of Developing Areas 29.
Bruno,M.and Sachs,J (1982), Energy and Resorce Allocation: A Dynamic Model of the Dutch Disease, Review of Economic Studies XLIX.
Carneiro, F (2007), Development Challenges Of Resource-Rich Countires:The Case Of Oil Exporters ,Prepared for the VI International Colloquium,Macrodynamic Capabilities and Economic Development, University of Brasilia, March 23,2007,Brasilia,brazil.
Chaudhry, K (1994), Economic Liberalusation and the Lineages of the Rentier State , Comparative Politics.
 Corden,W. and Neary ,J.,1982, Booming Sector and De-Industrialisation in a Smal Open Economy , The Economic Journal 92 (December).
Devlin,J. and M.Lewin (2004), Managing Oil Booms and Busts in Developing Countries, in Pinto , B.(ed),Managing Volatility and Crises:A Practioner,s Guide,World Bank
Frankel Jeffrey A (2010),The Natural Resource Curse:A Survey , NBER Working PAPER 15836,march.
Gylfason, T (2002), Lessons from the Dutch Disease: Caus, Treatment and Cures,Paradox of Plenty: The Management of Oil Wealth , Center for Economic Anaiysis.
_.,Nature,Power and Growth,the Scottish Journal Of Political Economy , Vol. 48,No.5,2001
Hausmann,R.and R.Rigobon (2003), AN Alternativ Explanation of the Resource Curse , in  Davis et al.(eds.),),Fiscal Policy Formulation and Imp.
Hirschman, A (1958), The Strategy of Economic Development, New Haven: Yale University Press
Kardor , M., Karl,T.L.and Said , Y (2007), Oil Wars , Pluto Press, Edited by M. Kaldor ,T..Karl and Y.Said.
Karl,T.L (1999), The Perils of Perils of Petroleum: Reflections on the Paradox of Plenty ,Jonrnal of Internationnal Affairs,Fall1999,53,No1
Landau,Dahlel (1986), Government and Economic Growth in the Less Developed Countries , an Emprical Stady For 1960-1980.Economic Development.
Levin,J (1960), The Export Economies: Their Pattern of Development in Historical Perspective, Cambrige:Harvard University Press.
Mahdavy,H (1970),The Patterns and Problems of Economic Development in Rentier States ‘ in M.Cook (ed), Studies in the Economic History of the Middle East , London: Oxford University Press.
Mahon Jr., J (1992),Was Latin America Too Rich to Prosper?, Journal of Deveiopment Studies 28.2(January).
Manzano , O. and R. Rigoobon (2007), Resource Curse or Debt Overhang ? In Lederman,D.and W.Maloney (eds),Naturul Resource: Neither Curse nor Destiny , The World BANK – Stanford University Press, Washinton, DC.
Mehlum, H., k. Moene & R.Torvik (2006), Institutions and the Resource Curse.The Econmic Journal.
Mitra,P (1994), Adjustment in Oil – Importing Developing Countries: A Comparative Economic Analysis , Cambridge: Cambridge University Press.
Nurske,R (1958), Trade Flucations and Buffer Policies OF Low-Income Countries,kyklos11.2.
Ross.M (1999), The Political Economy of the Resource curse,Word Politics51.
Rosser,A (2006), The Political Economy of the Resource curse: a Literature Survey , Institute of Development Studies:Working Paper 268.
 _.2007,Escaping the Resource Curse: The Curse of Indonesia, Journal of Contemporary Asia,Vol.37,No.1,February 2007.
Sachs,J.and A.Warner (1995), Natural Resource Abundance and Economic Growth , NBER Working Papers 5398, National Bureau of Economic Research, inc.
Shambayati,H (1994), The Rentier State,Interest Groups , and the Paradox of Autonomy,Comparative Politics 26(April).
Singer,H (1950), The Distribution of Gains Between Investing and Borrwing Countries , The American Economic Review 40.2(May),Papers AND Proceedings of The Sixty – Second Annual Meeting of American Economic Association.
Urrutia, M (1988), The Politics of Economic Development Policies in Resource Rich States, in M.Urrutia and S. Yukawa (eds),Economic Development Policies in Resource Rich Countries,Tokyo:United Nations University.
Wallich , H (1960), Monetary Problems of an Export Economy , Cambridge: Cambridge University Press.
Watkins, M (1963), A Staple Theory of Economic Growth , Canadian Journal of Economics and Political Science 32.
Yates,A (1995),The Rentier State , Interest Groups , and the Paradox of Autonomy: state and Business in Turkey and Iran , Comparative Politics 26(April 1994).