An Empirical Analysis on the Relationship Between Oil and Gas Rents and Education: The Role of Institutional Quality Thresholds
37 Pages Posted: 12 Mar 2021
Date Written: October 1, 2016
This paper examines the relationship between oil and gas rents and education when the institutional quality threshold is taken into account using a split-sample of 54 developing and developed countries. Methodologically speaking, the Cabrales and Hauk (2010) empirical model is replicated. A threshold is estimated according to their institutional quality. Extensions are as follows; first a cross-sectional analysis is considered for 2000 and the mean of 1996 through 2013, and second, a panel data analysis is considered covering the period from 1996 to 2013. 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.
Keywords: oil and gas, education, institutions, threshold effects
JEL Classification: O1, O13, I25, C24
Suggested Citation: Suggested Citation