Natural resources abundance such as oil can lead to decrease economic growth known as resource curse hypothesis, have well documented in economic research. Abundance of natural resources, can also affect social variables such as education, besides macroeconomic variable More
Natural resources abundance such as oil can lead to decrease economic growth known as resource curse hypothesis, have well documented in economic research. Abundance of natural resources, can also affect social variables such as education, besides macroeconomic variables. The income obtained from natural resources lead to insensitivity to education investments which could have adverse effects on long term economic performance. The aim of this study is to investigate the effect of oil revenues on education by using the data of Persian Gulf countries during 18 years up to 2017. Three different variables that represent the quantity and quality of education have been selected to show human resource development. Using PMG, the estimation shows that oil rent cause to lower education quantity and quality in the long run. As 20% growth of oil rent lead to decrease 3.4% in tertiary enrollment rate, 1.8% in average years schooling and 0.8% qin uality of education of Persian Gulf countries.
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