Natural Resources, Institutions and the Quality-adjusted Human Capital
35 Pages Posted: 27 Jan 2021
Date Written: December 8, 2020
This paper empirically analyses the effects of natural resources on both the quantity and quality of human capital. A panel of 162 countries for the period 1996-2014 is employed and allows us to confirm the crucial role of institutions showing that the negative association between natural resources and human capital can be reversed if the quality of institutions is high enough. The analysis also considers different types of natural resources and emphasizes the importance of using an indicator that incorporates the quantity but also the quality of human capital.
Keywords: human capital, natural resources, education, health, institutions
JEL Classification: O15, O13, O4
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