Impact of Financial Development and Resource Rents on Total Factor Productivity in Gulf Cooperation Council Countries

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Ruba A. Al-Jarallah
Ruba A. Al-Jarallah

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GJMBR Volume 22 Issue B5

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The present study estimates the impact of financial development and resource rents on total factor productivity in the Gulf Cooperation Council (GCC) countries by applying the GMM approach. The study takes the panel data from 1984 through 2019, while keeping population, corruption, and trade openness as control variables. The results reveal that financial development and resource rents affect total factor productivity positively in GCC countries. Moreover, the results show that improving trade openness contributes positively to total factor productivity. Though, raising corruption and population deteriorate productivity. Thus, this study emphasizes on the need to improve the quality of political institutions to minimize corruption and encourage contraceptives to control the fertility rate for intergenerational sustainability. Further, there is a need to promote trade and financial integration with developed countries, and to efficiently utilize natural resource rents for long-term growth and development.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Ruba A. Al-Jarallah. 2026. \u201cImpact of Financial Development and Resource Rents on Total Factor Productivity in Gulf Cooperation Council Countries\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 22 (GJMBR Volume 22 Issue B5): .

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Financials, resource rents, and productivity in Gulf Cooperation Council countries.
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: G00
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v1.2

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November 4, 2022

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English

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The present study estimates the impact of financial development and resource rents on total factor productivity in the Gulf Cooperation Council (GCC) countries by applying the GMM approach. The study takes the panel data from 1984 through 2019, while keeping population, corruption, and trade openness as control variables. The results reveal that financial development and resource rents affect total factor productivity positively in GCC countries. Moreover, the results show that improving trade openness contributes positively to total factor productivity. Though, raising corruption and population deteriorate productivity. Thus, this study emphasizes on the need to improve the quality of political institutions to minimize corruption and encourage contraceptives to control the fertility rate for intergenerational sustainability. Further, there is a need to promote trade and financial integration with developed countries, and to efficiently utilize natural resource rents for long-term growth and development.

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Impact of Financial Development and Resource Rents on Total Factor Productivity in Gulf Cooperation Council Countries

Ruba A. Al-Jarallah
Ruba A. Al-Jarallah

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