The Effect of Oil revenue Governance on Economic Growth of OPEC Member Countries with Emphasis on Stock Market Development Using PVAR GMM Approach

In this study the impact of oil revenue governance on the economic growth of selected OPEC member countries with an emphasis on the development of the stock market, using the PVAR GMM method was investigated. For this purpose, the required data related to the research variables was gathered from Global Financial Development Database (GFDD), World Development Indicators (WDI), International Monetary Fund (IMF) and the database of selected OPEC member countries (Iran, Iraq, Saudi Arabia, Kuwait, Venezuela, Nigeria, Algeria, United Arab Emirates and Libya) during 2003-2022 and STATA software was used for data analysis. The results showed that the governance indicators of oil revenues, or in other words, the share of public sector investment from oil revenues and the share of private sector investment from oil revenues, have a positive and significant effect on economic growth in the studied countries. Also, the development indicators of the stock market have positive and significant effect on the economic growth in the studied countries. In addition, the mutual effect of the share of public and private sectors investment from oil revenues and stock market development indicators strengthens the effect of the share of public and private sector investment from oil revenues on economic growth. Finally, oil revenues have a significant positive effect on the economic growth of considered countries, but with the increase in the rate of oil revenues, the economic growth of considered countries will decrease, which indicate the existence of the curse of natural resources or the Dutch disease in studied countries.