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Human Capital and Non-Renewable Natural Resources in Latin America and the Caribbean: ‘Is It a Curse or a Blessing’?

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  • Néstor Le Clech

    (Department of Economics and Business, National University of Quilmes, Roque Sáenz Peña 352, Bernal B1876, Buenos Aires, Argentina)

  • Juan Carlos Guevara-Pérez

    (Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain)

  • R. Urdaneta-Camacho

    (Faculty of Economics and Business, University of Zaragoza, 50005 Zaragoza, Spain)

Abstract

This study examines the role of non-renewable natural resources in the accumulation of human capital in a sample of eighteen Latin American and Caribbean countries from 1995 to 2018. We assess the influence of non-renewable resources through six distinct variables and employ panel data co-integration techniques (PMG-ARDL). Our findings reveal a positive long-run effect, whether measured by abundance or dependence indicators. Even in cases where negative short-run effects are observed, the positive impact is consistent in the long term. Furthermore, physical capital stock, institution quality, and a more open economy are the most important drivers of human capital accumulation in the region. Although the long-run effect of non-renewable natural resources on human capital was positive, the estimated elasticities account for a relatively low effect. Consequently, even in the absence of the ‘curse’ effect, we do not deem it appropriate to consider these results as a blessing.

Suggested Citation

  • Néstor Le Clech & Juan Carlos Guevara-Pérez & R. Urdaneta-Camacho, 2023. "Human Capital and Non-Renewable Natural Resources in Latin America and the Caribbean: ‘Is It a Curse or a Blessing’?," Sustainability, MDPI, vol. 15(15), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:15:p:11875-:d:1208822
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    References listed on IDEAS

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