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Human Capital Development Dynamics in Africa: Evidence from Panel Cointegration and Causality in 33 Countries, 2000-2013

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  • Mohammed SHUAIBU
  • Popoola Oladayo TIMOTHY

Abstract

This paper investigates the determinants of human capital development in 33 African countries over the period 2000 to 2013. Results of panel unit root shows that all the variables are integrated of order one while the co integration tests showed that human capital development and its determinants have a stable long-run equilibrium relationship. Specifically, all the variables significantly influence human capital development in the long run whereas the contemporaneous models suggest that only institutions matter. Through the use of alternative estimators as well as estimation of subsamples, our robustness tests reinforce our findings. Therefore, African governments may sustain human capital development through sustained education and health expenditures. At the same time, short-term gains may be attained with enhanced institutional quality as well as infrastructural development.

Suggested Citation

  • Mohammed SHUAIBU & Popoola Oladayo TIMOTHY, 2016. "Human Capital Development Dynamics in Africa: Evidence from Panel Cointegration and Causality in 33 Countries, 2000-2013," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1).
    • Handle: RePEc:eaa:aeinde:v:16:y:2016:i:1_10
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    References listed on IDEAS

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    Cited by:

    1. Oyolola, Feyisayo & Otonne, Adewumi, 2020. "Entrepreneurship, Capacity Development and Youth Employment Generation: A Study of Selected Sub-Saharan Africa Countries," MPRA Paper 99156, University Library of Munich, Germany.

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    More about this item

    Keywords

    Human Capital; Africa; Health; Education; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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