Rent Use Efficiency and Quality of Institutions in the World Economies

Abstract

Problems of efficiency use of rent produced in oil and gas extraction sectors in the world economies are discussed in the paper. Our investigation is based on econometric analysis of the World Bank statistical data. We confirm that the rent gives a powerful incentive for economic development. At the same time effects from the rent use are higher in the economies where the quality of institutions was initially better. Obviously the countries which invest rent and especially into the economic sectors of knowledge and human capital get better results. We find witnesses that rent infusions could influence the quality of institutions both improving them and hampering the institutional development.