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Effect of Government Human Capital Investment on Economic Growth in Sub-Saharan Africa: Evidence from Nigeria, South Africa and Ghana (1980-2013)

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  • Michael C Obialor

Abstract

This study examines the effect of government human capital investment on the economic growth of three Sub-Sahara African (SSA) countries of Nigeria, South Africa and Ghana from 1980 to 2013. The objective is to analyze the growth effect of three government human capital investment variables of health, education and literacy rate on the economies of these countries; Secondary data are sourced from World Development Indicators (WDI) online Database and analyzed using Co-integration techniques and Vector Error Correction mechanism (ECM) at 1% and 5% significance levels. The results indicate that two out of the three human capital proxy variables; Health,(GIH), and Education (GIE), show significant positive effect on growth only in Nigeria, while literacy ratio (LR)is insignificantly positive in all countries. This study concludes that in spite of the above result, the SSA countries’ economies still exhibit the potentials for enhanced economic growth in the long run judging from the VECM test results. The study therefore, recommends for SSA countries to prioritize skill development, increase budgetary allocations, as well as promote policies that enhance school enrolment in secondary schools in the sub-region.

Suggested Citation

  • Michael C Obialor, 2017. "Effect of Government Human Capital Investment on Economic Growth in Sub-Saharan Africa: Evidence from Nigeria, South Africa and Ghana (1980-2013)," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(4), pages 328-339.
    • Handle: RePEc:asi:ijoass:v:7:y:2017:i:4:p:328-339:id:2884
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    Cited by:

    1. Oloke Emmanuel & Olanipekun Wahid Damilola & Mabinuori Oladotun Toriola & Ojo Lucas B. & Aderemi Timothy Ayomitunde, 2022. "Government Educational Spending and Human Capital Development in ECOWAS Sub-Region: Implication For Sustainable Development," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 67(3), pages 37-52, December.
    2. Sodiq Arogundade & Mduduzi Biyase & Hinaunye Eita, 2021. "Foreign Direct Investment and Inclusive Human Development in Sub-Saharan African Countries:Does local Economic Conditions Matter?," Economic Development and Well-being Research Group Working Paper Series edwrg-01-2021, University of Johannesburg, College of Business and Economics, revised 2021.
    3. Feixiao Wang & Yaoqun Xu, 2022. "Evolutionary Game Analysis of the Quality of Agricultural Products in Supply Chain," Agriculture, MDPI, vol. 12(10), pages 1-16, September.
    4. Adeyemi A. Ogundipe & Olasinde Mobolaji & Oluwatomisin M. Ogundipe, 2021. "An Analysis of the Effect of Human Capital Investment on Economic Development in Nigeria: Does a New Indicator Alter Existing Evidence?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 17-29, January.

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