Abstract:

This study examines the mediation effect of governance indicators in the relationship of natural resources wealth and economic growth for 21 countries from the Middle East-North Africa (MENA) and the Hazar region (N=21) using the annual balanced panel data (T=17) for the period 1996-2012. In this context, after the impact of crude oil production per capita on real GDP per capita was estimated, hierarchical regression analysis was implemented to determine the mediation role of corporate-based management indicators in this relationship. The results of the bilateral regression forecast show that there is a negative relationship between the crude oil production per person and global governance indicators in general, and that the developments in all dimensions of governance indicators increase the real GDP per person. The hierarchical regression results show that in the relationship between crude oil production and real GDP per person, management indicators play an important role as a partial instrument variable. This finding shows that natural resources wealth tends to boost economic growth because it also disrupts the management indicators. All the results highlight the importance of integrated policies for the prevention of corruption and violence, along with democratic, political and legal arrangements that will improve the corporate nature.

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