Does dependence on natural resources promote human capital development in Africa?
Keywords:
Natural resource rents, human capital, 2SLS, AfricaAbstract
This study examines the effects of natural resources on human capital in 25 natural resource-dependent African countries over the period 2000–2023. We estimate an empirical model using the double least squares method. The results indicate that total natural resource rents, as well as the ratio of natural resource exports to total exports, have a positive and significant effect on human capital. When considering different types of resource rents, the results show that oil and natural gas rents have positive and significant effects on human capital, while coal and forest rents have a negative and significant impact on human capital. These results hold up when using an alternative measure of human capital. These results underscore the need for these countries to sustain resource rents earmarked for financing human capital. These countries must also enhance transparency in the management of natural resource rents to stimulate human capital development.
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