The effects of natural resource abundance on economic growth by taking role of corruption index

This paper investigates the effects of natural resource abundance on economic growth considering the role of institutional quality. For this purpose, has been investigated effects of institutional quality such as government effectiveness, control of corruption, Voice & Accountability and Rule of law along with resource abundance on economic growth in major oil economies countries by using panel data technique over the period 1996-2007. The results indicate that in these countries institutional quality has a significant positive effect on economic growth and resource abundant inversely related with economic growth. Also, natural resource abundance has led to decrease in institutional quality. So, natural resource abundance with low level of institutional quality in vicious circle has caused economic growth further reduces. This issue recommended, oil revenues management model have to reform for promotion of institutional quality. It is one of main and suitable Guidelines to break vicious circle and cause to increase and satiability of economic growth.