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The Effect of Natural Resource Dependence on Education in Indonesia

Bina, Jasmin LU (2019) EKHS21 20191
Department of Economic History
Abstract
Empirical evidence on the effect of natural resource dependence on education so far
has revealed mixed results. As a result of the ongoing controversy, this examination offers the
opportunity to extend knowledge about the relationship between natural resource dependence
and education. Using a panel dataset of 26 Indonesian provinces from 1996 to 2012 a fixed
effects regression is performed to investigate the local relationship between human capital
accumulation and resource dependency. Additionally, the analysis is complemented by a small
cross-country panel estimation including Indonesia, Malaysia, Thailand, the Philippines and
Vietnam to compare the results. A Pooled Mean Group Estimator is applied in this section to
analyse the... (More)
Empirical evidence on the effect of natural resource dependence on education so far
has revealed mixed results. As a result of the ongoing controversy, this examination offers the
opportunity to extend knowledge about the relationship between natural resource dependence
and education. Using a panel dataset of 26 Indonesian provinces from 1996 to 2012 a fixed
effects regression is performed to investigate the local relationship between human capital
accumulation and resource dependency. Additionally, the analysis is complemented by a small
cross-country panel estimation including Indonesia, Malaysia, Thailand, the Philippines and
Vietnam to compare the results. A Pooled Mean Group Estimator is applied in this section to
analyse the long-run relationship between 1984 and 2017. The findings reveal that natural
resource dependence, estimated through different measures, has a significant impact on human
capital accumulation. However, the presented evidence offers mixed results on the sign of the
effect. While a positive linkage is detected on the province-level in Indonesia, the cross-country
analysis indicates a primarily negative impact of resource dependency on human capital
accumulation. Furthermore, the findings suggest institutional quality significantly diminishes
the impact of resource dependence in the cross-country sample. (Less)
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author
Bina, Jasmin LU
supervisor
organization
course
EKHS21 20191
year
type
H1 - Master's Degree (One Year)
subject
keywords
Natural Resource Dependence, Resource Curse, Human Capital, Indonesia, Southeast Asia, Pooled Mean Group Estimator, Fixed Effects
language
English
id
8994499
date added to LUP
2019-10-24 07:11:49
date last changed
2019-10-24 07:11:49
@misc{8994499,
  abstract     = {Empirical evidence on the effect of natural resource dependence on education so far
has revealed mixed results. As a result of the ongoing controversy, this examination offers the
opportunity to extend knowledge about the relationship between natural resource dependence
and education. Using a panel dataset of 26 Indonesian provinces from 1996 to 2012 a fixed
effects regression is performed to investigate the local relationship between human capital
accumulation and resource dependency. Additionally, the analysis is complemented by a small
cross-country panel estimation including Indonesia, Malaysia, Thailand, the Philippines and
Vietnam to compare the results. A Pooled Mean Group Estimator is applied in this section to
analyse the long-run relationship between 1984 and 2017. The findings reveal that natural
resource dependence, estimated through different measures, has a significant impact on human
capital accumulation. However, the presented evidence offers mixed results on the sign of the
effect. While a positive linkage is detected on the province-level in Indonesia, the cross-country
analysis indicates a primarily negative impact of resource dependency on human capital
accumulation. Furthermore, the findings suggest institutional quality significantly diminishes
the impact of resource dependence in the cross-country sample.},
  author       = {Bina, Jasmin},
  keyword      = {Natural Resource Dependence,Resource Curse,Human Capital,Indonesia,Southeast Asia,Pooled Mean Group Estimator,Fixed Effects},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Effect of Natural Resource Dependence on Education in Indonesia},
  year         = {2019},
}