The Impact of Human Capital and Natural Resources on the Per capita Income Convergence

For hundreds of years, economists and scholars have been captivated by a phenomenon by which countries rich in natural resources regularly cannot utilize the resources for prosperity and economic development, and they may also suffer from stagnant inflation. A review of the classic theories of economics indicates that the abundance of natural resources and human capital leads to economic growth and, as a result, an increase in per capita income. The present study examined the impact of natural resources and human capital on the per capita income convergence of Asian countries which are members of the Economic Cooperation Organization (ECO) from 2000 to 2014. The results of the unit root tests of beta and sigma income convergence showed the per capita income convergence in the studied countries. This rate has increased to 0.28% regarding natural resources and human capital. Therefore, it should be noted that natural resources and human capital can increase the per capita income of the ECO countries and speed up their convergence.