Do natural resources abundance and human capital development promote economic growth? A study on the resource curse hypothesis in Next Eleven countries

Recent studies which investigated the determinants of foreign direct investment (FDI) in BRICS include Hsin-Hong and Shou-Ronne (2012), Nandi (2012), Jadhav (2012), Darzini and Amirmojahedi (2013), Nischith (2013), Ho et al. (2013), Kaur et al. (2013) and Priya and Archana (2014). The findings from these studies shows lack of consensus and confirm that a list of agreeable determinants of FDI in BRICS countries is still an unsettled matter. This paper was therefore initiated in order to contribute to the debate on the discourse on FDI determinants in BRICS countries.This paper deviates from earlier similar studies in five ways: (1) uses most recent data, (2) is the first to investigate whether a combination of financial development, trade openness, human capital, economic growth and inflation influence FDI in BRICS countries, (3) uses different proxies of the variables that affect FDI, (4) employed both fixed effects and pooled ordinary least squares (OLS) approaches and (5) used a stacked data approach.The results of the study showed that economic growth, trade openness and exchange rate stability positively impacted on FDI, financial development positively influenced FDI under fixed effects, FDI was positively influenced by human capital development using the pooled OLS and inflation negatively affected FDI in line with literature. Taking into account these findings, this study urges BRICS to implement policies that increase financial sector efficiency and economic growth, maintain stable exchange rates, keep inflation rates at lower levels, enhance trade openness and human capital development in order to increase FDI inflows.

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Government Expenditure on Human Capital Development: Implications for Economic Growth in Nigeria

Journal of Sustainable Development ◽

10.5539/jsd.v4n3p72 ◽

2011 ◽

Vol 4 (3) ◽

Cited By ~ 22

Author(s):

Stephen O. Oluwatobi ◽

Oluranti. I. Ogunrinola

Keyword(s):

Economic Growth ◽

Human Capital ◽

Government Expenditure ◽

Human Capital Development ◽

Capital Development

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Sources of Economic Growth in Zambia: An Empirical Investigation

Global Business Review ◽

10.1177/0972150916668449 ◽

2017 ◽

Vol 18 (2) ◽

pp. 275-290 ◽

Cited By ~ 11

Author(s):

Themba G. Chirwa ◽

Nicholas M. Odhiambo

Keyword(s):

Economic Growth ◽

Human Capital ◽

International Trade ◽

Foreign Aid ◽

Development Aid ◽

Human Capital Development ◽

Long Run ◽

Short Run ◽

Capital Development ◽

Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

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Trade Openness and Economic Growth in Malaysia

Foreign Trade Review ◽

10.1177/0015732516663317 ◽

2017 ◽

Vol 52 (3) ◽

pp. 157-170 ◽

Cited By ~ 8

Author(s):

Keshmeer Makun

Keyword(s):

Economic Growth ◽

Human Capital ◽

Trade Openness ◽

Decision Makers ◽

Economic Policies ◽

Human Capital Development ◽

Full Benefit ◽

Capital Development ◽

Positive Effect ◽

Econometric Technique

This study is an attempt to examine the effects of trade openness along with two other conditioning variables on economic growth in Malaysia by applying time-series econometric technique. LSE-Henry’s general to specific approach results show significant positive effect of trade openness on growth. Human capital and good economic policies tested with an interaction term increases the growth effects of trade openness. The addition of these variables and findings are significant statistically and robust to different specifications. On the basis of the findings, it is concluded that while trade openness enhance growth, decision makers should also focus on human capital development. In addition, decision makers should ensure good economic policies to take full benefit of trade openness.

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The Necessity of Diversification of Industry of Azerbaijan

International Conference on Eurasian Economies 2016 ◽

10.36880/c07.01659 ◽

2016 ◽

Author(s):

Lala Hamidova

Keyword(s):

Human Capital ◽

Natural Resources ◽

Financial Institutions ◽

Private Business ◽

Human Capital Development ◽

The Third ◽

Capital Development ◽

Oil Revenues ◽

Research Show ◽

Stimulation Of

The article reveals the benefits of diversification of industry, measures for overcoming of "curse of natural resources" in relation to the conditions of Azerbaijan and moving from the resource development industry in the country are studied there. This issue has three aims. Firstly, it is disclosure of necessity of diversification of industry, secondly - justification of the benefits of diversification, the third aim - the development of scientifically based recommendations for opportunities of diversification of the economy of the country. Two ways are used for fight against "curse of natural resources": backup of oil revenues in the State Oil Fund of the Azerbaijan Republic and the creation of the necessary political and economic institutions. The results of the research show that diversification is necessary in the countries depending on export of hydrocarbon resources. Diversification of economy of Azerbaijan should be directed to increase in human capital, development of infrastructure, support of financial institutions and stimulation of development of private business.

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Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

Journal of Business and Socio-economic Development ◽

10.1108/jbsed-05-2021-0061 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Kesuh Jude Thaddeus ◽

Chi Aloysius Ngong ◽

Njimukala Moses Nebong ◽

Akume Daniel Akume ◽

Jumbo Urie Eleazar ◽

...

Keyword(s):

Economic Growth ◽

Human Capital ◽

Foreign Direct Investment ◽

Direct Investment ◽

Government Expenditure ◽

Human Capital Development ◽

Content Type ◽

Capital Development ◽

Macroeconomic Determinants ◽

The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

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