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Natural Resource Abundance, Human Capital And Economic Growth In The Petroleum Exporting Countries

Author

Listed:
  • Davood Behbudi

    () (Economics Department, University of Tabriz)

  • Siab Mamipour

    (Economics Department, University of Tabriz)

  • Azhdar Karami

    () (Bangor Business School, Bangor University)

Abstract

Growth literatures indicate that human capital, education and technology progress are effective factors on economic growth. Empirical studies present that natural resource abundance have an important role on economic growth in natural-resource-rich countries. This paper investigates the relationship natural resource abundance, human capital and economic growth in two groups of petroleum exporting countries: namely A) Major petroleum exporters B) Other petroleum exporters. The paper first, investigated the relationships between related variables by cross section method and then the proposed model is tested by panel data for the period 1970-2004. Findings showed that physical investment and openness have positive impact on economic growth, and resource abundant and government expenditure inversely related with economic growth, but human capital have a different impact in two sample of the paper; so that in first group of countries, human capital have a negative relationship with economic growth while it has a positive relation with economic growth in second group. It is concluded that human capital can be main factor to explain slow growth of resource-rich countries. Abundant of natural resource in this countries and bad usage of natural resource can be cause of negative relationship between human capital and economic growth. In other hands, countries that are rich in mineral and oil neglect the developing of their human resources by devoting inadequate attention and expenditure to education. So these countries have lower growth rate with respect to others.

Suggested Citation

  • Davood Behbudi & Siab Mamipour & Azhdar Karami, 2010. "Natural Resource Abundance, Human Capital And Economic Growth In The Petroleum Exporting Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 35(3), pages 81-102, September.
    • Handle: RePEc:jed:journl:v:35:y:2010:i:3:p:81-102
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Abdul Wahab, Abdul Azeez Oluwanisola & Kefeli, Zurina & Hashim, Nurhazirah, 2018. "Investigating The Dynamic Effect of Healthcare Expenditure and Education Expenditure On Economic Growth in Organisation of Islamic Countries (OIC)," MPRA Paper 90338, University Library of Munich, Germany, revised 19 Oct 2018.
    2. Azmat Gani, 2012. "The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 77-93, March.
    3. Gadom Djal Gadom & Armand Mboutchouang Kountchou & Gbetoton Nad ge Ad le Djossou & Gilles Quentin Kane & Abdelkrim Araar, 2017. "The impact of oil exploitation on wellbeing in Chad," Working Papers PMMA 2017-06, PEP-PMMA.
    4. Salim M. Araji & Hamid Mohtadi, 2014. "Natural Resources, Incentives and Human Capital: Reinterpreting the Curse," Working Papers 892, Economic Research Forum, revised Dec 2014.
    5. repec:ucm:wpaper:05-13 is not listed on IDEAS
    6. Shao, Shuai & Yang, Lili, 2014. "Natural resource dependence, human capital accumulation, and economic growth: A combined explanation for the resource curse and the resource blessing," Energy Policy, Elsevier, vol. 74(C), pages 632-642.
    7. Isabel Álvarez González & Romilio Labra, 2013. "Identifying the role of natural resources in knowledge-based strategies of development," Working Papers del Instituto Complutense de Estudios Internacionales 1305, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    8. Shantayanan Devarajan, 2018. "How to Use Oil Revenues Efficiently," Working Papers 1199, Economic Research Forum, revised 24 May 2018.
    9. repec:spr:qualqt:v:52:y:2018:i:3:d:10.1007_s11135-017-0510-y is not listed on IDEAS
    10. Nolazco Cama, Jose Luis & Bravo-Ortega, Claudio, 2015. "Instituciones, Recursos Naturales Y Sus Efectos En El Crecimiento Economico: Un Sistema De Ecuaciones Simultáneas En Panel De Datos
      [Institutions, Natural Resources And Its Impact On Economic Growt      ," MPRA Paper 74421, University Library of Munich, Germany.
    11. Dauvin, Magali & Guerreiro, David, 2017. "The Paradox of Plenty: A Meta-Analysis," World Development, Elsevier, vol. 94(C), pages 212-231.
    12. repec:eee:jrpoli:v:60:y:2019:i:c:p:47-55 is not listed on IDEAS
    13. repec:sum:sjefsm:2018:p:22-30 is not listed on IDEAS
    14. Cockx, Lara & Francken, Nathalie, 2016. "Natural resources: A curse on education spending?," Energy Policy, Elsevier, vol. 92(C), pages 394-408.
    15. repec:gam:jeners:v:11:y:2018:i:10:p:2779-:d:176073 is not listed on IDEAS
    16. Fatema Alaali & Jennifer Roberts & Karl Taylor, 2015. "The Effect of Energy Consumption and Human Capital on Economic Growth: An Exploration of Oil Exporting and Developed Countries," Working Papers 2015015, The University of Sheffield, Department of Economics.
    17. repec:eco:journ1:2017-02-38 is not listed on IDEAS
    18. Edward Nissan & Farhang Niroomand, 2015. "Economic, welfare, demographic, and gender inequalities among selected Arab countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(2), pages 396-411, April.
    19. Jude Eggoh & Hilaire Houeninvo & Gilles-Armand Sossou, 2015. "Education, Health And Economic Growth In African Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 93-111, March.

    More about this item

    Keywords

    Economic Growth; Natural Resource Abundance; Human Capital; Petroleum Exporting Countries; Panel Data;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • I29 - Health, Education, and Welfare - - Education - - - Other

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