Abstract
The aims of this study is to verify the effect of the exploitation of mineral resources on human capital in CEMAC countries. Our analysis made use of panel data sets of all these members countries, over the period of 2002 to 2016, which is a period where the prices of natural resources weakness frequent fluctuation in the world market. The econometric model formulated in relation to mineral rent in CEMAC countries has three indicators of human capital, measured by the rate of school enrolment, infant mortality rate and life expectancy. Three regression techniques have been used for this purpose: the ordinary least squared (OLS); two stages least squared (2SLS) and Limited Information Maximum Likelihood (LIML). The results of our analysis shows that rent from mineral resources has a negative effect on schooling rate and life expectancy rate in CEMAC. Similarly, our result demonstrates that, mineral rent increases infant mortality rate in CEMAC members countries. Keywords: Mineral rent, human capital and panel data DOI : 10.7176/JESD/10-24-05 Publication date: December 31 st 2019
Highlights
The exploitation of natural resources (NR) has favoured economic development of countries such as Great Britain and Northern Ireland during the first Industrial Revolution in the 18th and 19th centuries
Using three different measures of human capital namely, schooling rate, life expectancy and infant mortality rate, we found that mineral rent in CEMAC countries has a negative effect on the first two measured of human capital and a positive effect on infant mortality
While some countries have benefited and continue to benefit from the exploitation of natural resources for their economic development, for others the exploitation of these resources is a double-edged sword; because they certainly provide significant financial revenues, but these resources end up destabilizing the national productive system
Summary
The exploitation of natural resources (NR) has favoured economic development of countries such as Great Britain and Northern Ireland during the first Industrial Revolution in the 18th and 19th centuries. Natural resources have played an important role during the early stages of development in countries such as the United States of America, Canada and the Netherlands. They continue to contribute to their development. It is noted that resource-dependent economies perform less well than diversified economies. This finding is relevant when we look at some Middle East and Africa countries which have a very rich sub-soil of raw materials and have built their economies on the exploitation of natural resources, but appear vulnerable because they based mainly on the marketing of natural resources
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