The relationship between resource abundance and human capital for OPEC countries

Experts differ between inherited and acquired abilities, but only the latter differ among countries. Human capital analysis deals with acquired capabilities which are developed through formal and informal education at school and at home and through training, experience and mobility in labor market. Based on researches, human capital is the main transmission channel that affects economic growth in the presence of natural resources. It can improve economic growth through its main channels that are higher productivity and higher quality of labor force. The mechanism of this issue is that higher human capital accumulation, as an intangible capital, leads to more efficient use of produced and natural capital. Based on the facts, the intangible capital (such as human capital) makes up a large share of total wealth, an estimated 60-80 percent, in most countries. However, unless we understand more about the composition of intangible wealth, governments may be tempted to conclude that a wide range of public expenditures are somehow yielding intangible benefits. One of the key factors of intangible capital is education and it can help government doing its economic policies more successfully.