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Resource curse? The case of Kern County

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  • Michieka, Nyakundi M.
  • Gearhart, Richard S.

Abstract

The resource curse occurs when resource-rich nations grow at a slower rate than countries with fewer natural resources. Regional analyses of the resource curse have become more common. Kern County is California's top oil producing region but experiences some of the highest poverty rates in the state. This study employs the Vector Error Correction (VECM) and the Autoregressive Distributed Lag (ARDL) models to investigate whether past and present values of resource abundance help explain educational attainment in Kern County. Findings from Kern County are compared with those of similar oil-producing counties in the state. Using data from 1950 to 2015, results indicate that there is no causality between oil, agricultural abundance and education in Kern County, while a long run relationship exists in Fresno County. Mixed results are obtained for Ventura and Santa Barbara counties. Part of the explanation may result from the types of jobs available in these industries.

Suggested Citation

  • Michieka, Nyakundi M. & Gearhart, Richard S., 2018. "Resource curse? The case of Kern County," Resources Policy, Elsevier, vol. 59(C), pages 446-459.
    • Handle: RePEc:eee:jrpoli:v:59:y:2018:i:c:p:446-459
    DOI: 10.1016/j.resourpol.2018.08.018
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    3. Wang, Lu & Chang, Hsu-Ling & Sari, Arif & Sowah, James Karmoh & Cai, Xu-Yu, 2020. "Resources or development first: An interesting question for a developing country," Resources Policy, Elsevier, vol. 68(C).
    4. Cheng, Zhonghua & Li, Xiang & Wang, Meixiao, 2021. "Resource curse and green economic growth," Resources Policy, Elsevier, vol. 74(C).
    5. Yu, Haijing & Hu, Chenpei & Xu, Bing, 2022. "Re-examining the existence of a “resource curse”: A spatial heterogeneity perspective," Journal of Business Research, Elsevier, vol. 139(C), pages 1004-1011.
    6. Nasiru Inuwa & Sagir Adamu & Mohammed Bello Sani & Abubakar Muhammad Saidu, 2022. "Resource Curse Hypothesis in GCC Member Countries: Evidence from Seemingly Unrelated Regression," Biophysical Economics and Resource Quality, Springer, vol. 7(4), pages 1-10, December.
    7. Nasiru Inuwa & Sagir Adamu & Mohammed Bello Sani & Haruna Usman Modibbo, 2022. "Natural resource and economic growth nexus in Nigeria: a disaggregated approach," Letters in Spatial and Resource Sciences, Springer, vol. 15(1), pages 17-37, April.

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    More about this item

    Keywords

    I25; O13; Kern County; Education; Resource curse;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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