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Educational Factors As Determinant Of International Reserves Accumulation In Organisation Of Petroleum Exporting Countries

Author

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  • Oladejo Tokunbo Bada

    (Covenant University, Nigeria)

  • Kehinde Adekunle Adetiloy

    (Covenant University, Nigeria)

  • Felicia Omowunmi Olokoyo

    (Covenant University, Nigeria)

Abstract

Despite huge petroleum revenues with high development needs, the growth of international reserves in OPEC countries has been negligible. This study examined the impact of educational factors using different levels of literacy in stimulating the macroeconomic determinants of international reserves in OPEC member countries using data from 2008 to 2018 from World Bank Development Indicators for 15 member countries. The study used a dynamic panel model, and the data were analyzed using System of Generalized Method of Moments (SGMM). The results show that educational levels such as adult literacy, youth literacy, tertiary and secondary enrollment mitigate the negative impact of the exchange rate and stimulate the impact of crude oil prices, while tertiary enrollment stimulates the impact of foreign direct investment and reduces the negative impact of economic crises. Overall, youth literacy was most significant for these economies, while economic crises were significantly positive at all levels as a major determinant of international reserve accumulation. Therefore, it was concluded that education contributes to the economy's accumulation of more reserves. In particular, the study recommended that national governments provide adequate funding for the education sector to improve the quality of education at the junior and high school levels in order to provide adequate knowledge and skills to enhance foreign investment.

Suggested Citation

  • Oladejo Tokunbo Bada & Kehinde Adekunle Adetiloy & Felicia Omowunmi Olokoyo, 2022. "Educational Factors As Determinant Of International Reserves Accumulation In Organisation Of Petroleum Exporting Countries," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 8(2).
    • Handle: RePEc:bal:journl:2256-0742:2022:8:2:2
    DOI: 10.30525/2256-0742/2022-8-2-11-21
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    References listed on IDEAS

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    More about this item

    Keywords

    macroeconomic factors; international reserves; Sy-GMM; youth literacy;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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