The effects of natural resources on human capital accumulation: A literature survey

We survey the growing literature studying the effects of natural resource abundance or dependence on human capital accumulation, a key factor in development and economic growth. This survey distinguishes between measures of resource abundance versus dependence, and between input, outcome, or participation measures of education and health. We find that a majority of studies find adverse effects of natural resource abundance or dependence on education and health, but that a small to sizeable minority find mixed or beneficial effects. The sheer robustness of negative findings across numerous approaches lends credibility to theories that reliance on resource extraction risks negative effects on the quantity or quality of supply of education and health services, and the demand for advanced education. At the same time, the minority of studies finding positive resource effects suggests there are both methodological and policy lessons that can be learned.