scholarly journals Impact of Natural Resource Rents and Institutional Quality on Human Capital: A Case Study of the United Arab Emirates

Resources ◽  
2019 ◽  
Vol 8 (3) ◽  
pp. 152 ◽  
Author(s):  
Ruba Aljarallah
Keyword(s):  
Human Capital ◽  
United Arab Emirates ◽  
Natural Resource ◽  
Positive Impact ◽  
Institutional Quality ◽  
Law And Order ◽  
Distributed Lag ◽  
Resource Rents ◽  
Natural Resource Rents

For many years, the United Arab Emirates has been using its natural resource wealth to develop infrastructure and attain economic growth. Nevertheless, human capital theory stresses the importance of human capital to reach sustainability in the long-term. This study examines the impacts of natural resource rents and institutional quality on human capital by applying the cointegration and error correction model based on the autoregressive distributed lag (ARDL) approach. The study uses corruption and law and order as proxies for institutional quality. The results indicate that one percent increases in resource rents and corruption decrease the human capital by 0.16% and 0.14%, respectively, in the long-term. Moreover, in the short-term, the current corruption and lag of resource rents have significant negative impacts on human capital. However, law and order has a positive impact on human capital in both the short and long-term. Thus, this study suggests that there is an instant need to prioritize education to reach long-term sustainability.

scholarly journals Dilemma of Natural Resource Abundance: A Case Study of Kuwait

SAGE Open ◽  
2020 ◽  
Vol 10 (1) ◽  
pp. 215824401989970
Author(s):  
Ruba A. Aljarallah ◽  
Andrew Angus
Keyword(s):  
Human Capital ◽  
Natural Resource ◽  
Institutional Quality ◽  
Resource Abundance ◽  
Distributed Lag ◽  
Resource Rents ◽  
Long Run ◽  
Short Run ◽  
Per Capita ◽  
Using Data

There is a lively debate about the relationship between a nation’s natural resource abundance and economic growth. Some view natural resource abundance as a curse, whereas others view it as a blessing. This study examines the economic, social, and political effects of resource abundance in an oil-rich country, Kuwait, using data from 1984 to 2014. This study analyzes the short- and long-run impacts of resource rents on per capita gross domestic product (GDP), productivity, human capital, and institutional quality. The study reveals through autoregressive distributed lag modeling and error correction modeling that resource rents increase per capita GDP merely in the short-run; however, resource rents deteriorate productivity, human capital, and institutional quality in both the short and the long-run. These results indicate that, for Kuwait, the overreliance on its natural resources has been detrimental over the long-run. The study suggests that there is a need to improve the quality of institutions and enhance the level of human capital to get economic sustainability and development over time.

NATURAL RESOURCE RENTS AND INTERNAL CONFLICT: THE ROLE OF INSTITUTIONAL QUALITY

2021 ◽  
pp. 1-21
Author(s):  
UMAIMA ARIF ◽  
MUHAMMAD USMAN ◽  
FARZANA NAHEED KHAN
Keyword(s):  
Developing Countries ◽  
Natural Resource ◽  
Institutional Quality ◽  
Internal Conflict ◽  
Resource Rent ◽  
Government Institutions ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Natural Resource Rent ◽  
The Impact

The study explores the impact of natural resource rents on internal conflicts and examines how the aforementioned relationship is influenced by institutional quality. The study is based on a panel dataset of 70 countries for the period 1991–2018. The empirical evidence shows that natural resource rent leads to an increase in internal conflict in both developed and developing countries. However, the impact of natural resource rent on internal conflict is negative in the presence of better quality of government institutions for the global sample, developed and developing countries. Hence, natural resource rent leads to a reduction in internal conflict when it is supported by better institutional quality in terms of high bureaucratic quality, rule of law and low corruption in government institutions. Overall, the study finds that natural resource rent leads to an increase in internal conflict, however, this relationship is mitigated by better institutional quality.

scholarly journals Does Human Capital Mitigate Resource Curse? Evidence in the Short- and Long-Run

2021 ◽  
Vol 13 (10) ◽  
pp. 157
Author(s):  
Ibrahima Coulibaly ◽  
Jebaraj Asirvatham
Keyword(s):  
Human Capital ◽  
Natural Resources ◽  
Positive Impact ◽  
Resource Curse ◽  
Dutch Disease ◽  
Model Framework ◽  
Distributed Lag ◽  
Long Run ◽  
Show Evidence

This paper examines the short-term and long-term relationships among natural resources, human capital, and growth in Mali in an Autoregressive Distributed Lag-Error Correction Model framework. In the presence of natural resources, we find that human capital has a positive impact on growth over time. Results show a long-term, stable and positive relationship between economic growth, natural resources, and human capital. Furthermore, the results do not show evidence of Dutch disease or the presence of any natural resource curse in Mali.

Dutch Disease phenomenon and demand for international business travels: Panel ARDL/PMG estimation

2021 ◽  
pp. 135481662098313
Author(s):  
Hassan F Gholipour ◽  
Reza Tajaddini ◽  
Usama Al-mulali
Keyword(s):  
International Business ◽  
Natural Resource ◽  
Positive Impact ◽  
Dutch Disease ◽  
Annual Data ◽  
Panel Ardl ◽  
Resource Rents ◽  
Long Run ◽  
Short Run ◽  
Natural Resource Rents

This article explores the long-run and short-run effect of natural resource rents on inbound and outbound business travels in resource-abundant economies. By applying panel ARDL/PMG models for 25 countries with annual data for 2005–2017, our results show that increases in dependency on natural resources lead to lower demand for inbound and outbound business travels in the long run. The short-run analyses indicate that while natural resource rents have a significant and positive impact on outbound business travels, they do not affect inbound business travels.

Natural Resource Rents-Capital Flight Nexus in Selected ECOWAS Countries: Evidence from Non-Linear ARDL Approach

2021 ◽  
Vol 10 (2) ◽  
pp. 81-97
Author(s):  
Abdulfatai A Adedeji ◽  
Sherifat W Kogbodoku
Keyword(s):  
Natural Resources ◽  
Natural Resource ◽  
Capital Flight ◽  
Asymmetric Effect ◽  
Distributed Lag ◽  
Resource Rents ◽  
Long Run ◽  
Short Run ◽  
Natural Resource Rents ◽  
Symmetric Effect

The challenge of capital flight in the ECOWAS sub-region is worrisome. Huge revenue from natural resources also contributes to the relocation of available resources necessary for the development of the region. The study identifies the revenue from natural resources as a key driver of capital flight in the region. Hence, this study analyzed the effect of natural resource rents on capital flight in ECOWAS countries accounting for the role of asymmetry. Also, the study employed the nonlinear autoregressive distributed lag (NARDL) model to account for short-run and long-run asymmetries. The results revealed the presence of asymmetry in five countries, while two countries displayed symmetric effects. It also showed that the symmetric effect of natural resource rents on capital flight is weak for Guinea and Nigeria in the short-run while the long-run effect is not more pronounced for Nigeria. In the case of asymmetric effect, natural resource rents amplified capital flight in Cape Verde and Sierra Leone. Further evidence shows that the non-linearity of natural resource rents does not encourage capital flight in Burkina Faso, Cote d’Ivoire, and Ghana. Hence, the countries should promote transparency and accountability in the management of proceeds from natural resources to enhance development in the region.

scholarly journals An Empirical Relationship Between Human Capital, Institutional Quality, and Economic Growth in Pakistan

2020 ◽  
Vol 16 ◽  
Author(s):  
Abdul Farooq ◽  
◽  
Sarah Arshi ◽  
Nyla Sattar ◽  
Amber Khalil
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Empirical Relationship ◽  
Impulse Response Function ◽  
Decomposition Analysis ◽  
Institutional Quality ◽  
Law And Order ◽  
Distributed Lag ◽  
Time Period ◽  
Variance Decomposition Analysis

Pakistan is a developing economy where different policies have been adopted to increase economic growth, but the targeted growth rates have remained an elusive dream. Low quality of institutions and less attention towards the development of human capital are two major reasons for this failure. This study explores the association of institutional quality and human capital on economic growth in Pakistan from the time period between years 1984 to 2018. For the estimation of our model, Auto-Regressive Distributed Lag (ARDL) model has been used. The variance decomposition analysis is also used to check the shocks, direction, and magnitude of the shocks within the selected variables. Impulse response function confirms that the magnitude and direction of the shocks are positive. The outcome of this research suggests that accumulation in human capital increases productivity, and institutional quality helps to sustain economic growth. Therefore, policy makers should design such policies, which are helpful for the development of human capital. It is also recommended that law and order situation be improved so that the confidence of people and trust of investors is restored that eventually will drive economic growth in Pakistan.

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