An Empirical Analysis on the Relationship Between Oil and Gas Rents and Education: The Role of Institutional Quality Thresholds
36 Pages Posted: 12 Mar 2021 Last revised: 26 Apr 2023
Date Written: February 28, 2022
Abstract
This paper examines the relationship between energy rents, specifically oil and gas, and education when the institutional quality threshold is taken into account using a split-sample of 54 developing and developed countries. A threshold is estimated based on the institutional quality. The results confirm that the level of institutional quality is crucial to determine the effects of oil and gas rents on education either in the cross-section or panel data analysis. Results show that oil and gas rents significantly decrease the level of education in countries with lower quality of institutions. However, we find a robust and positive effect of oil and gas rent in countries with a higher quality of institutions.
Keywords: oil and gas, education, institutions, threshold effects
JEL Classification: O1, O13, I25, C24
Suggested Citation: Suggested Citation