The resource curse hypothesis suggests that resource-rich countries (especially oil-dependent economies) show lower economic growth rate as compared to resource-poor countries. We contribute to this literature by providing empirical evidence on a new transmission channel of the resource curse, namely the negative long-run effect of oil rents on the quality of education. Our empirical analysis for more than 70 countries from the period of 1995–2015 shows a significantly positive effect of oil rents on the quantity of education measured by government spending on primary and secondary education. However, we find a robust and negative long-run effect of oil rents dependency on the objective and subjective indicators of quality of education. Further, panel regressions with country and year fixed effects support our cross-country findings on the negative effect of oil rents dependency on the quality of education.
| Identifer | oai:union.ndltd.org:DRESDEN/oai:qucosa:de:qucosa:85833 |
| Date | 06 June 2023 |
| Creators | Farzanegan, Mohammad Reza, Thum, Marcel |
| Publisher | Springer |
| Source Sets | Hochschulschriftenserver (HSSS) der SLUB Dresden |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/publishedVersion, doc-type:article, info:eu-repo/semantics/article, doc-type:Text |
| Rights | info:eu-repo/semantics/openAccess |
| Relation | 1435-8921, 10.1007/s00181-018-1548-y |
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