Human capital and poverty reduction in OPEC member-countries

Abstract

A vast study has shown a mixed result on the implications of a natural resource on growth and poverty. Theoretically, the Resource Curse Hypothesis stresses that natural resource serves as an obstacle for growth. However, the connection between human capital and poverty in OPEC member countries remain under-researched. To ensure inclusiveness in growth, it is essential to focus on human capital models that incorporate the components of poverty reduction. As a result, this study investigates the interactive relationship between human capital components and poverty reduction in OPEC member countries. It is a cross-country study of a panel fully modified least-squares of 12 countries within the OPEC region. The interactive effects of the components of human capital development have a long-run impact on poverty reduction in OPEC member countries. Besides, human capital components confirm a positive effect on poverty reduction. Thus, since human capital is a crucial determinant of improving economic growth, OPEC member countries should invest more on the quality of human capital through education and health to improve the living standard of people and societal welfare.

Equality and Poverty: Views From Managers and Professionals From Public Services and Household Heads in the Belo Horizonte Metropolitan Area, Brazil

“…Based on the BCE framework, this study contends that investments in health care, education and social assistance are a way to minimize the adverse attributes of poverty in Brazil and in other countries. Similarly, a study on country members of the OPEC identifies the value of human capital in reducing poverty, highlighting that investments in health care and education contributed to attaining a higher standard of living as well as economic growth15 .In this study, extreme poverty proved to be the reflection of a cascade effect that trapped and restrained the capabilities of families in RN. To tackle this, policies targeting poverty in Brazil would require priority, such as the BFP.…”

“…One study has highlighted that public investments in health and education reduced poverty in 12 member countries of the OPEC 15 . Other studies have also verified benefits to economic growth via external assistance provided to countries with high indices of poverty.…”

“…They entail "worsened living conditions and the breakdown of universal health and social protection services", contributing to poverty and extreme poverty, and increased detriments to public health [13][14] . In this regard, in several cases, country members of the Organization of the Petroleum Exporting Countries (OPEC) have validated that investments in developing human capital, such as in health and education, can significantly reduce poverty while boosting economic growth 15 .…”

Devising a method to optimize the investment structure aimed to achieve strategic targets in the socio­economic development of regions

“…However, the macro-regional aspect will be touched upon here without analyzing the national specifics of human capital development. Study [5] conducted for the OPEC countries shows that the development of human capital became a decisive factor in long-term economic growth, having significantly affected the decreasing poverty in these countries. Article [6], examining the factors of economic growth in Africa, shows clear feedback between the intensity of using natural resources and the level of human capital development.…”

Development of a Fuzzy Dynamic Model for the Formation of the Optimal Allocation of Financial Resources for the Maximum Development of Regional Human Capital

“…Reference [13] notes that in 1960-2011, the investment in human capital and the dynamics of production specialization were the critical economic growth factors for developed countries. Reference [14] shows that the development of human capital has become one of the crucial factors in long-term economic growth, which contributed to poverty reduction. Reference [15] describes a clear feedback between the rate of exploitation of natural resources and the level of development of human capital.…”