Eleventh Global Studies Conference

Abstract

The question regarding why some oil rich countries have more economic growth compared to other oil rich countries is highly debated in the fields of international political science and economics. Scholars have found many variables that are potential explanations to such a puzzle, ranging from political regimes to historical backgrounds. However, there seems to be little agreement behind what truly hinders economic growth for some oil rich countries while others under similar circumstances are able to thrive. Such a gap is detrimental to the overall well-being of the countries who face the situation of a low GDP because it doesn’t help in taking actions countries to improve economic output. In this study, I review government investments from two different oil rich countries but with differing GDP per capita in terms of human capital and military expenditure in order to show the effects each of these have on the GDP per capita. I use a qualitative case study and a 10-year interval between the investments themselves and compare on GDP per capita. I argue that higher investment in human capital leads to a higher GDP per capita in oil rich countries compared to a low investment in human capital in other oil rich countries. In conclusion, this project highlights the importance of public policy oriented towards increasing education and human capital to avoid a negative economic outcomes.