Natural resources, institutions and the quality-adjusted human capital

Soran Mohtadi

EconStor Open Access Articles and Book Chapters, 2022, vol. 49, issue 6, 1033-1054

Abstract: This article empirically analyses the effects of natural resources on both the quantity and quality of human capital in a panel of 161 countries from 1996 to 2018. We analyze differentiated effects of resource rents depending on the type of resource. Results show that total resource rents has no significant direct effect on human capital. When disaggregating the natural resource variable into sub-categories, we find that oil rents have a negative significant effect on human capital especially in developing countries. Our results also emphasize the crucial role of institutions showing that the negative association between oil rents and human capital can be reversed if the quality of institutions is high enough.

Keywords: Human capital; Natural resources; Institutions; Resource curse (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:263321

DOI: 10.1108/JES-11-2020-0536

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