The relationship between resource abundance and human capital for OPEC countries

اقتصاد و توسعه منطقه ای

Article 3, Volume 22, Issue 9, December 2015, Pages 95-130   

Document Type: مقالات پژوهشی

DOI: 10.22067/erd.v22i9.36204

Authors

Farzaneh Ahmadian Yazdi^* ; Mohammad Hossein Mahdavi Adeli

Ferdowsi University of Mashhad

Abstract

Human capital (labor quality or knowledge embedded in human beings) is one the important issues in recent decade, because concentrating on this kind of capital can improve products and can make economic growth and development. This study has been investigated effective factors on human capital, emphasis on resource abundance for OPEC countries in period 2000-2012. To achieve that object, Arturo human capital’s model has been utilized; also according to economic nature of these countries, oil rent variable has been added to this model. For estimating coefficients, panel data method has been used. Based on results, resource abundance has negative effect on human capital accumulation, thus the coefficient is equal to -0.11. There for the more oil rent will lower the economic growth in these countries. Also based on results, the relationship between life expectation and economic growth and human capital is positive and the coefficients are 1.84 and 0.26. In addition to those results, population growth has negative effect on human capital accumulation; its coefficient is equal to -0.08. So population growth policies can’t be suitable for OPEC countries because such policies can’t improve human capital in such countries.

Keywords

Human Capital; Resource Abundance; Oil Rent; Panel Data

References

Amini, A. and Hejazi Azad, Z. (2007). “An Analysis and Assessment of Health Contribution to Increasing Labor Productivity, Iranian Journal of Economic Research, 9(30):137-163. (In Persian).

Asea, P. and Lahiri, A. (1999).“The Precious Bane”, Journal of Economic Dynamics and Control, 23: 823-849.

Atkinson, G.and Hamilton, K. (2003).“Savings, growth and the resource curse hypothesis”, World Development, 11: 1793-1807.

Auty, R. (2001). “Resource Abundance and Economic Development”, UNU/WIDER Studies in Development Economics, Oxford: Oxford University press.

Barro, R.J. and Lee, J.W. (1993).“International Comparisons of Educational Attainment”, Journal of Monetary Economics, 32: 363-394.

Behboudi, D. and Asgharpour, H. and Mamipour, S. (2009). “ resource Resource abundantAbundant, human Human capital Capital and economic Economic growth Growth in Petroleum exporting Exporting Countries (the panel data approach)”, Iranian Journal of Economic Research, 13(40):125-147. (In Persian).

Bhattacharyya, S. and Hodler, R. (2008).“Natural resources, democracy and corruption”, European Economic Review,54: 608-621.

Bravo-Ortega, C. and Gregorio, J. (2000).“The relative richness of the poor: natural resources, human capital and economic growth”, Mimeo Ministry of Economics.

Bravo-Ortega, C. and Gregorio, J. (2002).“The relative richness of the poor: natural resources, human capital and economic growth”, Central bank of Chile Working Papers, 139: 1-36.

Bravo-Ortega, C. and Gregorio, J. (2005).“The relative richness of the poor? Natural resources, human capital and economic growth”, World bank working paper series, No.3484.

Brunnschweiler, h. (2006).“Cursing the blessings? Natural resource abundance, institutions and economic growth”, Institude of Economic Research, ETH Zurich, Zurich bergstrasse 18, 8032 Zurich, Switzerland, pp. 1-20.

Brunnschweiler, C.N. and Bulte, E.H. (2008).“The resource curse revisited and revised: A tale of paradoxes and red herring”, Journal of Environmental Economics and Management, 55:248-264.

Busse, M. and Groning, S. (2011).“The resource curse revisited: Governance and Natural Resources”, Hamburg Institute of International Economics (HWWWI), paper 106.

Coulibaly, I. (2013).“Long‌Term Economic Impact of the Natural Resources and Human Capital on the Growth Rate”, Research Papers, paper 399, pp.1-37.

Dae-Bong,K. (2009).“Human Capital and Its Measurement”, The 3rd OECD World Forum on “Statistics, Knowledge and Policy”, Busan, Korea, pp.1-15.

Durlaf, S.N. (2001).“Manifesto for Growth Econometrics, Journal of Econometrics”, 100: 65-69.

Elmi, Z. and Jamshidnejad, A. (2007). “The Effect of Education on Economic Growth of Iran During the Years 1971-2003”,Journal ofSocial and HumanSciences, 26:135-154. (In Persian).

Emadzadeh, M. and Khoshakhlagh, R. and Sadeghi, M. (2003). “The role ofhuman capital ineconomic growth”, Journalof Planning and Budget, 50:3-25. (In Persian).

Fallahi, M.A. and Mahdaviadeli, M.H. and Jandaghimeybodi, F. (2014). “Naturalresource rentsandcorruptionOPEC countries:usinga paneldatamodel”, Journal of Energy Economics, 11. (In Persian).

Gaille, S.S. (2003).“Mitigating The Resource Curse: A Proposal for A Microfinance and Educational Lending Royalty Law”, Energy Law Journal, 32:81-97.

Gylfason, T. and Herbertsson T.T. and Zoega G. (1999).“A Mixed Blessing: Natural Resources and Economic Growth”, Macroeconomic Dynamics, 2: 204-225

Gylfason, T. and Zoega, G. (2002).“Natural Resources and Economic Growth: The Role of Investment”, CEPR Discussion Papers.

Gylfason, T. (2001).“Natural resources, education, and economic development”, European Economic Review, 45:847–859.

Gylfason, T. and Gylfi, Z. (2002).“Natural Resources and Economic Growth, the Role of Investment”,Working Papers, Central Bank of Chile.

Hayami, Y. (2013). “Development Economics: From the Poverty to the Wealth of Nations”, Translation: Gholamreza Azad, Ney publicaion, Fifth Edition, Tehran. (In Persian).

Karel, T.L. (2009). “The Paradox of Plenty Oil Booms and Petro-States”, Translation: Jafar Kheirkhahan, Ney Publication, First Edition, Tehran. (In Persian).

Khastar, H. (2006). “Theage structure ofthe workforcein thehuman resource planning: imageryof the challengesof agingworkforce”, Quarterly Journal of population, 71-72:23-44. (In Persian).

Ledermann, D.and Maloney, W.F. (2003).“Trade structure and growth”, World Bank Policy Research, Working Paper, No. 3025.

Lucas, R. (1988).“On the Mechanics of economic development”, Journal of Monetary Economics, 22: 3-42.

Malek o sadati, S.S. (2007). “Effects of Good Governance(according to World Bankindicators) onEconomicGrowthin Selected Countries”, M.SC Thesis, Allame Tabatabaei university. (In Persian).

Manning, A. (2004).“Human Capital as a Transmission Mechanism of the Resource Curse”, The Park Place Economist, 12:75-86.

Matsuyama, K. (1992).“Agricultural Productivity, comparative advantage and economic growth”, Journal of Economic Theory, 58:317-334.

Mehrara M. and Kaykha, A. (2009). “Institutional Quality, Economic Growth and Oil Revenues in Oil Dependent Countries during the Period 1985-2005”, Quarterly Journal of Quantitative Economics, 5(4): 55-79. (In Persian).

Mohammadzadeh, P. and Mamipoor, S. and Feshari, M. (2010). “statasoftware applicationsin econometrics”, Noor e elm publicaion, First Edition, Tehran. (In Persian).

Papyrakis, E.and Gerlagh, R. (2004).“The resource curse hypothesis and its transmission channels”, Journal of Comparative Economics, 32:181-193.

Papyrakis, E.and Gerlagh, R. (2007).“Resource abundance and economic growth in the United States”, European Economic Review, 51:1011-1039.

Philippot, L. M. (2010). “Are Natural Resources a Curse for Human Capital Accumulation?”, CERDI Working Paper, pp.1-27.

Rahmani, T. and Golestani, M. (2010). “Resource Curse, Rent-Seeking, and Income Inequality in Oil Rich Countries”, Tahghighate Eghtesadi, 89:57-86. (In Persian).

Ramos, A. (2001).“Foreign Direct Investment as a Catalyst for Human Capital Accumulation”, Submitted in Fulfillment of the MALD Thesis Requirement, The Fletcher School of Law and Diplomacy.

Sachs, J. and Warner, A. (1995).“Economic Reform and Process of Global Integration”, Blooming papers on Economic Activity, pp. 1-188.

Sachs, J. and Warner, A. (1997).“Natural resource abundance and economic growth”, Working Paper, Institute for International Development, Harvard University, pp.1-50.

Sadeghi, M. and Emadzadeh, M. (2004). “Estimatingthe contribution ofhuman capitalineconomicgrowthduring theyears1345-1380”, Iranian Journal of Economic Research, 5(17):79-98. (In Persian).

Sala-i-Martin, X.and Subramanian, A. (2003).“Addressing the natural resource curse: an illustration from Nigeria”, National Bureau of Economic Research Working Paper, No.9804, Cambridge, Mass:NBER.

Salehi-Isfahani, D.j. (2012).“Population and Human Capital in the Persian Gulf”, in The Political Economy of the Persian Gulf, Mehran Kamrava (ed), New York: Colombia University Press, pp 147-171.

Salmani, B. and Yavari, K. (2006). “Economic growthin countries withnatural resources, theoil exporting countries”, Iranian Journal Of Trade Studies, 9(37): 37-66. (In Persian).

Schultz, T.W. (1961).“Investment in human capital”, American Economic Review,51:1-17.

Sen, A. (1999).“Development as Freedom”, Oxford: Oxford University Press.

Smith, A. (1776).“An Inquiry into the Nature and Causes of Wealth of Nations”, Oxford: Clarendon Press.

Sobhani, H. (2000). “Return oneducationalinvestment”, Tahghighate Eghtesadi, 45:76-89. (In Persian).

Stijns, J.P. (2001).“Natural Resource Abundance and Human Capital Accumulation”, University of California at Berkeley, unpublished manuscript.

Stijns, J.P. (2006).“Natural Resource Abundance and Human Capital Accumulation”, World Development, 34:1060-1083.

Suslova, E.and Volchkova, N. (2012).“Human Capital, Industrial Growth and Resource Curse”, Social Sciences Research Network, pp. 1-23.

Taghavi, M. and Mohammadi, H. (2006). “ The Effect of Human Capital on Economic Growth:Case of IRAN”, Journal of Economic Research 6(22):16-43.

Taherifard, A. and Hosseini, S.J. (2011). “Resource-based Development Feasibility”, JournalofManagement andDevelopment, 77:91-107. (In Persian).

World Bank, (2014), World Development Indicators.

Yavari, K. and Sadat, R. (2003). “Human capital and Economic Growth in Iran (Causal analysis)”, The Economic Reseach, 2(5): 31-41. (In Persian).