Is there a natural resources curse on educational inequality? Does political concentration matter? Empirical evidence in developing countries.

Mondjeli Mwa Ndjokou, Université de Yaoundé II
Valentine Soumtang Bime , Université de Yaoundé II
AGATHE CASSANDRA KOUMIS NGAGNI, University of Douala

There is a vast literature on inequality and the controversial effects of natural resources. However, despite the importance of inequality, little is known about the effect of natural resources on educational inequality and even less about the role of institutions in this relationship. This study fills this gap by assessing the role of political concentration in the relationship between natural resources and educational inequality. Using data from 81 developing countries from 1995 to 2019, we estimate a two-stage least squares model. The results show that while natural resources reduce educational inequality in DCs, political concentration tends to worsen this effect. This result partly explains the natural resource curse in developing countries. The results remain stable to additional factors, another measure of natural resources, and changes in estimation technique. We suggest that political power should be less concentrated and suggest more decentralization for a better allocation of rents in education systems