Human capital investment, productivity and economic growth in selected Sub Saharan African countries
- Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Authors: Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Date: 2023-11
- Subjects: Human capital -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Capital investments -- Africa, Sub-Saharan
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28639 , vital:74481
- Description: Many Sub-Saharan African (SSA) countries experience low economic growth rate levels which is worrisome given the demographic window of opportunities in the region. The governments of SSA countries have been putting emphasis on increasing investments in human capital development as it is vital in unlocking potential economic growth through enhancing regional productivity. With this in mind, this study examined the effect of human capital investment on economic growth through productivity in 12 selected SSA countries during the period 2000 to 2017. The selection of these countries and the study period were based on the data availability as well as differences in income growth. The sample represents all the countries in the income growth groups which are low income, lower middle income and upper middle income. In order to examine the overall effect of human capital investment on economic growth the study utilizes two models which are: 1. Human capital investment and productivity in selected SSA countries. 2. Human capital investment and economic growth in selected SSA countries. Model 1 objective of the study was to investigate the effect of human capital investment on productivity in the selected SSA countries. Productivity proxied by labour productivity measured by real output per person employed was the dependent regressed against a host of independent variables which includes human capital investment, foreign direct investment (FDI), total factor productivity (TFP) and labour quantity growth (LQ).The human capital investment components used in the model included: fiscal expenditure on primary education (PEI), secondary education(SEI), tertiary education (TEI) all as a percentage of government expenditure on education; public health(PHI) as a percentage of GDP and domestic private health (DPHI) as a percentage of current health expenditure. Several estimation techniques which include the Pooled Mean Group (PMG), Panel Fully Modified Ordinary Least Square (PFMOLS) and Panel Dynamic Ordinary Least Square (PDOLS) were employed to analyse the relationship between the variables of interest. The empirical findings indicated that all human capital investment components contribute positively to labour productivity except tertiary education investment which had a negative effect. Moreover, the empirical findings also revealed that foreign direct investment and total factor productivity had positive effects on labour productivity while labour quantity growth had a negative effect. Model 2 objective examined the effect of productivity enhanced human capital on economic growth in the sample of countries. It also incorporated the direct channel of the effect of human capital on economic growth in the stated countries. Economic growth (EG) proxied by real GDP growth as the dependent variable and, on the other hand, explanatory variables being productivity enhanced human capital investment (PEHC), human capital (HC), gross fixed capital formation (GFCF), population growth (POP), institutional quality proxied by government effectiveness (GE) and political stability (PS). The same estimation techniques were also employed so as to obtain robust results. The empirical findings revealed that both productivity enhanced human capital investment and human capital contributes positively to economic growth in the selected SSA countries. In addition, the empirical results also proved that gross fixed capital formation, government effectiveness and political stability have positive effects on economic growth whilst population growth has a negative effect. Overall, the results of the study evidenced the existence of a transfer mechanism from human capital investment to economic growth through productivity in the selected SSA countries. The empirical results imply that increasing investment on human capital is of importance in trying to enhance productivity and through this economic growth in the SSA region. The study concludes that there is a potential on enhancing economic growth in the long run in the SSA region if countries invest more on human capital. Therefore, the study recommends that SSA countries must devote more budget to human capital so that free basic education can be offered in both primary and secondary as well as free health care services. With this, the objectives of quality education and health, sustainable and inclusive growth targets of the African Union (AU) Agenda 2063 as well as United Nations (UN) Sustainable Development Goals (SDGs) can be achieved. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
Human capital investment, productivity and economic growth in selected Sub Saharan African countries
- Authors: Mutambirwa, Edward https://orcid.org/0000-0002-9010-1950
- Date: 2023-11
- Subjects: Human capital -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Capital investments -- Africa, Sub-Saharan
- Language: English
- Type: Doctoral theses , text
- Identifier: http://hdl.handle.net/10353/28639 , vital:74481
- Description: Many Sub-Saharan African (SSA) countries experience low economic growth rate levels which is worrisome given the demographic window of opportunities in the region. The governments of SSA countries have been putting emphasis on increasing investments in human capital development as it is vital in unlocking potential economic growth through enhancing regional productivity. With this in mind, this study examined the effect of human capital investment on economic growth through productivity in 12 selected SSA countries during the period 2000 to 2017. The selection of these countries and the study period were based on the data availability as well as differences in income growth. The sample represents all the countries in the income growth groups which are low income, lower middle income and upper middle income. In order to examine the overall effect of human capital investment on economic growth the study utilizes two models which are: 1. Human capital investment and productivity in selected SSA countries. 2. Human capital investment and economic growth in selected SSA countries. Model 1 objective of the study was to investigate the effect of human capital investment on productivity in the selected SSA countries. Productivity proxied by labour productivity measured by real output per person employed was the dependent regressed against a host of independent variables which includes human capital investment, foreign direct investment (FDI), total factor productivity (TFP) and labour quantity growth (LQ).The human capital investment components used in the model included: fiscal expenditure on primary education (PEI), secondary education(SEI), tertiary education (TEI) all as a percentage of government expenditure on education; public health(PHI) as a percentage of GDP and domestic private health (DPHI) as a percentage of current health expenditure. Several estimation techniques which include the Pooled Mean Group (PMG), Panel Fully Modified Ordinary Least Square (PFMOLS) and Panel Dynamic Ordinary Least Square (PDOLS) were employed to analyse the relationship between the variables of interest. The empirical findings indicated that all human capital investment components contribute positively to labour productivity except tertiary education investment which had a negative effect. Moreover, the empirical findings also revealed that foreign direct investment and total factor productivity had positive effects on labour productivity while labour quantity growth had a negative effect. Model 2 objective examined the effect of productivity enhanced human capital on economic growth in the sample of countries. It also incorporated the direct channel of the effect of human capital on economic growth in the stated countries. Economic growth (EG) proxied by real GDP growth as the dependent variable and, on the other hand, explanatory variables being productivity enhanced human capital investment (PEHC), human capital (HC), gross fixed capital formation (GFCF), population growth (POP), institutional quality proxied by government effectiveness (GE) and political stability (PS). The same estimation techniques were also employed so as to obtain robust results. The empirical findings revealed that both productivity enhanced human capital investment and human capital contributes positively to economic growth in the selected SSA countries. In addition, the empirical results also proved that gross fixed capital formation, government effectiveness and political stability have positive effects on economic growth whilst population growth has a negative effect. Overall, the results of the study evidenced the existence of a transfer mechanism from human capital investment to economic growth through productivity in the selected SSA countries. The empirical results imply that increasing investment on human capital is of importance in trying to enhance productivity and through this economic growth in the SSA region. The study concludes that there is a potential on enhancing economic growth in the long run in the SSA region if countries invest more on human capital. Therefore, the study recommends that SSA countries must devote more budget to human capital so that free basic education can be offered in both primary and secondary as well as free health care services. With this, the objectives of quality education and health, sustainable and inclusive growth targets of the African Union (AU) Agenda 2063 as well as United Nations (UN) Sustainable Development Goals (SDGs) can be achieved. , Thesis (PhD) -- Faculty of Management and Commerce, 2023
- Full Text:
- Date Issued: 2023-11
Is economic growth without human development sustainable? : Sub-Saharan Africa’s recent growth acceleration in context
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
- Full Text:
- Date Issued: 2014
- Authors: Hadisi Basingene, Serge
- Date: 2014
- Subjects: Sustainable development -- Africa, Sub-Saharan , Economic development -- Africa, Sub-Saharan , Poverty -- Africa, Sub-Saharan , Africa, Sub-Saharan -- Social conditions , Africa, Sub-Saharan -- Economic conditions , Africa, Sub-Saharan -- Economic policy
- Language: English
- Type: Thesis , Masters , MEcon
- Identifier: vital:1098 , http://hdl.handle.net/10962/d1013137
- Description: The purpose of the study has been to assess the question of sustainability of economic growth and human development, particularly using sub-Saharan Africa in context. Sub-Saharan Africa is an interesting case study because, on the one hand, it has been mired in poverty and remains the least developed region in the world, and on the other, it has experienced a revival in economic growth since the mid-1990s. Economists tend to use the term economic development and economic growth interchangeably. However, questions have been raised about whether Africa’s latest growth episode is indeed ‘development’. Although there are many issues at stake, the key question, and the focus of this thesis, is whether sub-Saharan Africa’s revival is sustainable. The paper sets out the debate between the ‘World Bank view’ and the ‘alternative view’. The main debate lies around how genuine development should be achieved. Firstly, the ‘World Bank view’ claims that economic growth is necessary and sufficient condition to achieve development. Economic growth will be generated by ‘orthodox’ policies and this growth will automatically trickle-down and stimulate development. Secondly, the ‘alternative view’ argues that economic growth is necessary but it is not sufficient to stimulate sustainable development. Economic growth without ‘qualitative’ change is not ‘sustainable’. Indeed, human development shortfalls (as well as other, social, political and structural problems), if not addressed through appropriate policy interventions, can undermine economic growth. The ‘alternative view’ appears to be strongly supported by evidence from other developing regions such as Latin America and East Asia. The empirical study conducted in this thesis reinforces doubts about ‘sustainability’. Even though there are signs of convergence in some indicators; this is not the case for all indicators. More importantly the gap between sub-Saharan Africa and other developing regions remains very wide. Sub-Saharan Africa’s development path remains uncertain. The intention in this study is not to be conclusive that sub-Saharan Africa cannot achieve sustainable development. Rather the study attempts to identify potential hindrances to sub-Saharan Africa’s development and to provide a solid foundation for further research in the same direction.
- Full Text:
- Date Issued: 2014
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