Human capital and poverty reduction in OPEC member-countries

A vast study has shown a mixed result on the implications of a natural resource on growth and poverty. Theo-retically, 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. Toensure inclusiveness in growth, it is essential to focus on human capital models that incorporate the componentsof poverty reduction. As a result, this study investigates the interactive relationship between human capitalcomponents and poverty reduction in OPEC member countries. It is a cross-country study of a panel fully modifiedleast-squares of 12 countries within the OPEC region. The interactive effects of the components of human capitaldevelopment have a long-run impact on poverty reduction in OPEC member countries. Besides, human capitalcomponents confirm a positive effect on poverty reduction. Thus, since human capital is a crucial determinant ofimproving economic growth, OPEC member countries should invest more on the quality of human capital througheducation and health to improve the living standard of people and societal welfare