The complementary roles of human capital and institutional quality on natural resource - FDI—economic growth Nexus in the MENA region

Waliu Olawale Shittu (), Hammed Oluwaseyi Musibau () and Sodiq Olaiwola Jimoh ()
Additional contact information
Waliu Olawale Shittu: KolaDaisi University
Hammed Oluwaseyi Musibau: University of Tasmania
Sodiq Olaiwola Jimoh: Kwara State University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 6, No 22, 7936-7957

Abstract: Abstract A number of studies have examined the roles of natural resources endowment on economic prosperity (or otherwise). While doing this, some researchers have identified institutions (while some others have suggested human capital) as a conduit via which natural resources endowment stimulates the economy. To lend a voice to this important policy issue, this study measures the roles of human capital and institutional quality on the nexus between natural resources endowment, FDI and economic growth in the MENA region. Based on the ARDL technique on yearly data spanning 1990–2017, our empirical estimates suggest that natural resources endowment is positively connected with growth, while human capital exerts both negative and positive effects—even though the negative effect dominates. Again, while the aggregated institutional quality produces a negative estimate, a mixed result is obtained when it is disaggregated. Moreover, FDI stimulates growth in the short-run, but not in the long-run; human capital is observed to reduce the negative effect of FDI on the growth of the MENA region by 0.01%, while institutions alter the negative FDI–growth relationship earlier obtained by 0.15%. Finally, the interaction effect of natural resources endowment and human capital on—growth is positive; a positive coefficient is equally obtained for the interactive role of natural resources endowment and institutional quality. These explain that human capital influences the growth effect of natural resources endowment by 0.01%, even as institutional quality stimulates the positive impact of natural resources endowment on economic growth by 0.23%.

Keywords: Dutch disease syndrome; MENA; Human capital; Institutional quality; FDI (search for similar items in EconPapers)
JEL-codes: O13 O43 Q43 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://link.springer.com/10.1007/s10668-021-01767-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:24:y:2022:i:6:d:10.1007_s10668-021-01767-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-021-01767-5

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().