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

See all articles by Soran Mohtadi

Soran Mohtadi

Johns Hopkins University SAIS

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

Mohtadi, Soran, An Empirical Analysis on the Relationship Between Oil and Gas Rents and Education: The Role of Institutional Quality Thresholds (February 28, 2022). Available at SSRN: https://ssrn.com/abstract=3777892 or http://dx.doi.org/10.2139/ssrn.3777892

Soran Mohtadi (Contact Author)

Johns Hopkins University SAIS ( email )

1717 Massachusetts Avenue NW
Washington DC, DC 20036
United States

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