NATURAL RESOURCE RENTS, HUMAN CAPITAL AND INDUSTRIAL DEVELOPMENT IN THE SUB-SAHARAN AFRICAN REGION
- Mutiu A. Oyinlola
- Abdulfatai A. Adedeji
- Modupe O. Bolarinwa
- ( paper pages. 1 - 23 )
Abstract
This study assesses whether natural resource rents can enhance thepositive association between human capital and industrialdevelopment using a sample of 14 sub-Saharan African (SSA)countries over the period 1995 to 2015. The dynamic approach wasadopted through the use of the system generalized method of moments.The empirical findings reveal that the direct impact of naturalresource rents on industrial development is negative and statisticallyinsignificant. The study further confirms an insignificant impact ofhuman capital on industrial development in the presence of naturalresource rents. This implies that despite the huge amount of rentsrealized from natural resources, the industrial sector is yet to benefitsubstantially from this. In addition, a direct drag of educationexpenditure (one of the indicators of human capital) on industrialdevelopment was observed. Thus, the study recommends thatgovernments in the SSA region need, as a matter of urgency, toefficiently utilize proceeds from the sale of natural resources bymassively investing in meaningful human capital development.
Citation
Mutiu A. Oyinlola, Abdulfatai A. Adedeji, Modupe O. Bolarinwa.
2019.
"NATURAL RESOURCE RENTS, HUMAN CAPITAL AND INDUSTRIAL DEVELOPMENT IN THE SUB-SAHARAN AFRICAN REGION"
The Nigerian Journal of Economic and Social Studies,
61 (1): 1 - 23.
JEL Classification
I190, I150, L160, O32, O130, Q43