An Analysis of the Impact of Rents from Non-renewable Natural Resources and Changes in Human Capital on Institutional Quality: A Case Study of Kuwait
Additional contact information
Ruba Aljarallah: Public Authority for Applied Education and Training - College of Business Studies, Kuwait
International Journal of Energy Economics and Policy, 2021, vol. 11, issue 5, 224-234
Non-renewable energy resources are considered to be an important input for industries that support local industrial production and employment. However, many researchers believe that such resources have a damaging effect on the institutional quality, because this quality has an effect on a country s decision-making mechanisms, and on the human capital, which is usually described as the accumulation of education in a specified population. This collective damage thus impedes economic growth and development. The present study analyses the impact of resource rents from non-renewable energy resources and the human capital on the institutional quality in Kuwait, using an autoregressive distributed lag (ARDL) approach based on data for the period between 1984 to 2018. The results indicate that an increase in rents from non-renewable energy resources has decreased institutional quality, whereas human capital enhances the institutional quality both in the short and long-term. This study concludes that an investment in the human capital could help insulate Kuwait from the damaging effects of over-reliance on the non-renewable energy resource rents.
Keywords: Non-renewable Energy Resources; Resource Rents; Institutional Quality; Human Capital; Kuwait; Resource Curse (search for similar items in EconPapers)
JEL-codes: F62 O11 O38 O40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2021-05-26
Access Statistics for this article
International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk
More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().