Investigating the Effect of Dependence on Natural Resources and Brain Drain on the Fragility of States and Good Governance in Developing Fuel-Exporting Countries

Authors

1 Department of Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran

2 2Department of Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Zahedan, Iran. Email: nazar@hamoon.usb.ac.ir

3 Department of Economics, Faculty of Economics and Management, University of Sistan and Baluchestan, Iran, Zahedan. Email: ali.sargolzaie@pgs.usb.ac.ir

4 Department of Economics, Faculty of Administrative Sciences and Economics, Ferdowsi University, Mashhad, Iran. Email: fateme.r1998@yahoo.com

Abstract

Good governance is a system of values, policies, and institutions by which governments manage society. Stability and political stability in countries require the absence of management gaps and the achievement of governance improvement and lack of fragility, which weakened and fragile governments do not have the necessary conditions for such conditions. Usually, developing countries are exposed to the gap in natural resources and brain drain, which provide the basis for important effects on governance and fragility. In this study, to investigate the effect of dependence on natural resources and brain drain on the fragility of states and good governance, the statistical data of 26 developing countries that export fuel from 2007 to 2019 were used and with the approach of SUR Model estimation has been done. The results show that the effect of natural resource rent on the fragility of states is positive and statistically significant. Also, the effect of natural resource rent on good governance is negative and significant. In other words, the effect of natural resource rent on the fragility of states and good governance has an impact coefficient of 0.03 and -0.02, respectively. Therefore, the rent of natural resources can cause governments to weaken and become more fragile in good governance indicators. Also, the effect of brain drain on the fragility of states is positive and significant, and it is negative and significant on good governance. The effect coefficient of the brain drain variable on the fragility of states and good governance is 2.05 and -0.12, respectively.

Keywords

References

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International Journal of Business and Development Studies
Volume 14, Issue 2
December 2022
Pages 71-91

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