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Estimating the Nonlinear Panel Smooth Transition Regression (PSTR) Model to Examine the Threshold Effects of Natural Resource Rents on Economic Growth in Resource-Exporting Countries
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Akram Ghavami1   , Ghodratollah Emamverdi2 , Ali Akbar Khosravinejad3 , Narcis Amin Rashti4 |
1- PhD student
2- Assistant Professor , Gh.emamverdi@iau.ac.ir
3- Assistant Professor.
4- Assistant. Professor |
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Abstract: (2 Views) |
This study investigates the nonlinear effects of natural resource rents on economic growth in resource-exporting countries using the Panel Smooth Transition Regression (PSTR) model. Unlike conventional studies that assume linear relationships between variables, this research employs the PSTR approach to identify behavioral thresholds and regime shifts in the impact of resource rents. The panel dataset comprises information from 20 resource-exporting countries over the period 2000–2022. Human capital, physical capital, economic freedom, and urban concentration are incorporated as transition variables in the model. Preliminary tests confirm the presence of nonlinearity in the relationship between resource rents and economic growth, indicating at least one behavioral threshold within the data structure. Based on the PSTR estimation, a critical threshold for resource rents is identified, below which their impact on economic growth is negative and statistically significant, and above which the effect becomes positive and significant. Complementary models, including quantile regression and fixed effects, further reveal that the influence of resource rents is more pronounced in countries with lower growth rates. The findings suggest that natural resource rents can contribute to sustainable economic growth if they exceed a critical level and are accompanied by investments in human capital, infrastructure, and economic liberalization. These results underscore the importance of threshold-based policy design, institutional strengthening, and strategic resource management in resource-rich economies. |
Article number: 14 |
| Keywords: Natural resource rents, Economic growth, Panel Smooth Transition Regression (PSTR), Nonlinear relationships, Resource-exporting countries |
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Full-Text [PDF 1622 kb]
(1 Downloads)
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Article type: Research |
Subject:
Special
Received: 2025/07/10 | Accepted: 2025/10/5 | Published: 2026/05/31
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