The Impact of Natural Resource Depletion, Conflict, and Financial Development on Energy Security Risk in Middle Eastern Countries

Document Type : Original Article

Author

Assistants Professor, Department of Economics, Payam Noor University, Tehran, Iran.

Abstract

Energy security refers to the reliable and continuous availability of energy at affordable prices and is essential for sustaining economic activity and supporting national economic development. In this context, this study examines the determinants of energy security risk in Middle Eastern countries, with particular emphasis on natural resource depletion, conflict, and financial development over the period 2000–2022. Estimation using the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) approach indicates that natural resource depletion has a positive and statistically significant impact on energy security risk, providing evidence consistent with the resource curse hypothesis from an energy-security perspective. The conflict risk index also has a positive and statistically significant effect on energy security risk, whereas the composite financial development index has a negative and statistically significant effect.
 The results further indicate that economic growth, trade, and technological development reduce energy security risk in the countries in the sample. The robustness of the empirical findings is further supported by estimates obtained using the Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) approach. Overall, the findings suggest that sustainable management and use of natural resources, the reduction of domestic and external tensions and conflicts, and the development of the financial sector can play important roles in strengthening energy security in the countries examined.

Keywords

References

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اقتصاد دفاع و توسعه پایدار
Volume 11, Issue 41
September 2026
Pages 119-144

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