Does oil rents dependency reduce the quality of education?

Mohammad Reza Farzanegan () and Marcel Thum

Empirical Economics, 2020, vol. 58, issue 4, No 15, 1863-1911

Abstract: Abstract The resource curse hypothesis suggests that resource-rich countries (especially oil-dependent economies) show lower economic growth rate as compared to resource-poor countries. We contribute to this literature by providing empirical evidence on a new transmission channel of the resource curse, namely the negative long-run effect of oil rents on the quality of education. Our empirical analysis for more than 70 countries from the period of 1995–2015 shows a significantly positive effect of oil rents on the quantity of education measured by government spending on primary and secondary education. However, we find a robust and negative long-run effect of oil rents dependency on the objective and subjective indicators of quality of education. Further, panel regressions with country and year fixed effects support our cross-country findings on the negative effect of oil rents dependency on the quality of education.

Keywords: Oil rents; Resource curse; Quality of education; Quantity of education (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (15)

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DOI: 10.1007/s00181-018-1548-y

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