Investigate resource curses with an emphasis on institutional inefficiency: Case Study Iran

Based on the resource curse in resource-rich countries, not only the revenue from the sale of these resources have not led to more economic growth, but also have had a negative impact on the economy. Various theories have been presented about the resource curse. One of them is based on the institutional approach. Accordingly, the cause of the resource curse is related to institutional quality. In the present study, with the institutional analysis approach, the role of institutional quality in the resource curses in Iran is analyzed. Since most of the quantitative researches in the literature have not succeeded in identifying indicators for detecting the resource curse, the present study addresses this problem as well as to avoid the limitations of the usual regression models, The Stochastic Frontier Analysis (SFA) has been used. The results show that institutional inefficiency in Iran, when connected with the abundance of gas and oil resources, exacerbates the resource curse.