How do extractive resources affect human development? Evidence from a panel data analysis

This paper examines the effect of extractive resources on human development. We control for institutional quality through a composite index of institutional quality. Our sample covers 42 countries over the period 2009–2015. Given the small sample size, we use the bias-corrected least square dummy va...

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Main Authors: Issaka Dialga, Youmanli Ouoba
Format: Article
Language:English
Published: Elsevier 2022-03-01
Series:Resources, Environment and Sustainability
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666916122000019
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author Issaka Dialga
Youmanli Ouoba
author_facet Issaka Dialga
Youmanli Ouoba
author_sort Issaka Dialga
collection DOAJ
description This paper examines the effect of extractive resources on human development. We control for institutional quality through a composite index of institutional quality. Our sample covers 42 countries over the period 2009–2015. Given the small sample size, we use the bias-corrected least square dummy variable method. The results show that extractive resources have a positive and significant effect on human development. Health and education are the channels through which extractive resources affect human development. The quality of institutions improves the effect of extractive resources on health but destroys their positive effect on human development and education. This study reveals that the consideration of institutional quality must be specific to each sector (health and education) in a more in-depth analysis of the effect of extractive resources on human development.
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spelling doaj.art-351e216da5284ebfb3a2a56be5dc446d2022-12-21T19:23:38ZengElsevierResources, Environment and Sustainability2666-91612022-03-017100046How do extractive resources affect human development? Evidence from a panel data analysisIssaka Dialga0Youmanli Ouoba1University Thomas SANKARA, Department of Economics, 12 BP 417 Ouagadougou 12, Burkina Faso; LEMNA, Laboratory of Economics and Management Nantes-Atlantique, Department of Economics, University of Nantes, Chemin de la Censive du Tertre, 44322 Nantes cedex 3, France; Corresponding author at: LEMNA, Laboratory of Economics and Management Nantes-Atlantique, Department of Economics, University of Nantes, Chemin de la Censive du Tertre, 44322 Nantes cedex 3, France.University Thomas SANKARA, Department of Economics, Center for Economic and Social Studies, Documentation and Research (CEDRES), Ouagadougou 12, 12 BP 417, Burkina FasoThis paper examines the effect of extractive resources on human development. We control for institutional quality through a composite index of institutional quality. Our sample covers 42 countries over the period 2009–2015. Given the small sample size, we use the bias-corrected least square dummy variable method. The results show that extractive resources have a positive and significant effect on human development. Health and education are the channels through which extractive resources affect human development. The quality of institutions improves the effect of extractive resources on health but destroys their positive effect on human development and education. This study reveals that the consideration of institutional quality must be specific to each sector (health and education) in a more in-depth analysis of the effect of extractive resources on human development.http://www.sciencedirect.com/science/article/pii/S2666916122000019Extractive resourcesHuman developmentResource curseQuality of institutionsPanel
spellingShingle Issaka Dialga
Youmanli Ouoba
How do extractive resources affect human development? Evidence from a panel data analysis
Resources, Environment and Sustainability
Extractive resources
Human development
Resource curse
Quality of institutions
Panel
title How do extractive resources affect human development? Evidence from a panel data analysis
title_full How do extractive resources affect human development? Evidence from a panel data analysis
title_fullStr How do extractive resources affect human development? Evidence from a panel data analysis
title_full_unstemmed How do extractive resources affect human development? Evidence from a panel data analysis
title_short How do extractive resources affect human development? Evidence from a panel data analysis
title_sort how do extractive resources affect human development evidence from a panel data analysis
topic Extractive resources
Human development
Resource curse
Quality of institutions
Panel
url http://www.sciencedirect.com/science/article/pii/S2666916122000019
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