IDEAS home Printed from https://ideas.repec.org/a/ers/ijebaa/vviiiy2020i4p377-391.html
   My bibliography  Save this article

Determinants of Human Capital Development in Africa

Author

Listed:
  • Kunofiwa Tsaurai

Abstract

Purpose: The study had two main objectives, namely (1) to investigate the determinants of human capital development and (2) to explore if the complementarity between FDI and information and communication technology-enhanced human capital development in Africa, are in line with theoretical predictions. Design/Approach/Methodology: The study used panel data analysis (fixed effects, random effects, pooled ordinary least squares, dynamic generalized methods of moments) with African panel data ranging from 2001 to 2015. Findings: The dynamic GMM method noted that human capital development was positively affected by its own lag in a significant manner. Under all the four econometric estimation methods, FDI had no significant influence on human capital development, yet information and communication technology significantly impacted human capital development across all the methods used. The study also revealed that the complementarity between FDI and information and communication technology significantly influenced human capital development under fixed effects, random effects, and pooled OLS only. Practical Implications: Africa is urged to implement policies to strengthen ICT implementation to help the inflow of FDI improve human capital development. The study implies that African nations must implement policies to develop their financial sectors if they want to enhance human capital development. Therefore, African countries are urged to increase their expenditure in revamping and strengthening their infrastructure if they wish to enhance the development of human capital. Originality/Value: This paper is unique because it is the first of its kind to investigate the impact of the complementarity between FDI and information and communication technology on human capital development and to consider the dynamic features of human capital development data.

Suggested Citation

  • Kunofiwa Tsaurai, 2020. "Determinants of Human Capital Development in Africa," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 377-391.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:377-391
    as

    Download full text from publisher

    File URL: https://ijeba.com/journal/594/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Zubair Hasan, 2000. "Determinants Of Human Resource Development: An Empirical Analysis," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 1(1), pages 157-188, June.
    3. Claude Diebolt & Ralph Hippe, 2019. "The long-run impact of human capital on innovation and economic development in the regions of Europe," Applied Economics, Taylor & Francis Journals, vol. 51(5), pages 542-563, January.
    4. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
    5. Rosenzweig, Mark R, 1990. "Population Growth and Human Capital Investments: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 38-70, October.
    6. Liana SON & Graţiela Georgiana NOJA, 2013. "The role of the human capital and investment in human capital within the sustainable socio-economic development. How labour force migration affects competitiveness?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(10(587)), pages 111-126, October.
    7. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    8. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
    9. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    10. Kunofiwa Tsaurai, 2018. "Investigating the determinants of human capital development in emerging markets," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 9(2), pages 172-181.
    11. Odhiambo, Nicholas M., 2009. "Finance-growth-poverty nexus in South Africa: A dynamic causality linkage," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 320-325, March.
    12. Orazio P. Attanasio, 2015. "The Determinants Of Human Capital Formation During The Early Years Of Life: Theory, Measurement, And Policies," Journal of the European Economic Association, European Economic Association, vol. 13(6), pages 949-997, December.
    13. Mohammed Shuaibu & Popoola Timothy Oladayo, 2016. "Determinants Of Human Capital Development In Africa: A Panel Data Analysis," Oeconomia Copernicana, Institute of Economic Research, vol. 7(4), pages 523-549, December.
    14. Oketch, Moses O., 2006. "Determinants of human capital formation and economic growth of African countries," Economics of Education Review, Elsevier, vol. 25(5), pages 554-564, October.
    15. repec:agr:journl:v:10(587):y:2013:i:10(587):p:111-126 is not listed on IDEAS
    16. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    17. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    18. Jere R. Behrman & Ryan Schneider, 1992. "Empirical Evidence on the Determinants of and the Impact of Human Capital Investments and Related Policies in Developing Countries: Implications for India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27(1), pages 1-23, July.
    19. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. US Thathsarani & Jianguo Wei & GRSRC Samaraweera, 2021. "Financial Inclusion’s Role in Economic Growth and Human Capital in South Asia: An Econometric Approach," Sustainability, MDPI, vol. 13(8), pages 1-18, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roseline Tapuwa Karambakuwa & Ronney Ncwadi & Andrew Phiri, 2020. "The human capital–economic growth nexus in SSA countries: what can strengthen the relationship?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 47(9), pages 1143-1159, July.
    2. Mohammad Sharif Karimi & Elham Heshmati Daiari, 2018. "Does Institutions Matter for Economic Development? Evidence for ASEAN Selected Countries," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(1), pages 1-20, Winter.
    3. Wang, Kuan-Min, 2011. "Health care expenditure and economic growth: Quantile panel-type analysis," Economic Modelling, Elsevier, vol. 28(4), pages 1536-1549, July.
    4. Hasanov, Fakhri & Bulut, Cihan & Suleymanov, Elchin, 2017. "Review of energy-growth nexus: A panel analysis for ten Eurasian oil exporting countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 369-386.
    5. Samargandi, Nahla & Fidrmuc, Jan & Ghosh, Sugata, 2015. "Is the Relationship Between Financial Development and Economic Growth Monotonic? Evidence from a Sample of Middle-Income Countries," World Development, Elsevier, vol. 68(C), pages 66-81.
    6. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.
    7. NAPO, Fousséni, 2018. "Capital humain, productivité manufacturière et croissance économique dans les pays de l’UEMOA [Human capital, manufacturing productivity and economic growth in WAEMU countries]," MPRA Paper 89450, University Library of Munich, Germany, revised 12 Oct 2018.
    8. Zahra Sheidaei & Mohammadnabi Shahiki Tash, 2014. "The Cumulative Effect of Human Capital on Economic Growth: Using Panel Data Method," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(52), pages 95-115, June.
    9. Guadalupe Serrano & Enrique Lopez Bazo & Jose Ramon Garcia Sanchi, 2002. "Complementarity between human capital and trade in regional technological progress," Working Papers in Economics 83, Universitat de Barcelona. Espai de Recerca en Economia.
    10. Clement Olalekan Olaniyi & Sunday Idowu Oladeji, 2021. "Moderating the effect of institutional quality on the finance–growth nexus: insights from West African countries," Economic Change and Restructuring, Springer, vol. 54(1), pages 43-74, February.
    11. Tahir Mahmood & Eatzaz Ahmad, 2014. "Output growth and investment dynamics in Finland: a panel data analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 777-801, November.
    12. M. Gouveia & R. Inglesi-Lotz, 2021. "Examining the relationship between climate change-related research output and CO2 emissions," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(11), pages 9069-9111, November.
    13. Charles Shaaba Saba & Nicholas Ngepah, 2022. "ICT Diffusion, Industrialisation and Economic Growth Nexus: an International Cross-country Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2030-2069, September.
    14. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    15. Sinesipho Siswana & Andrew Phiri, 2021. "Is Export Diversification or Export Specialization Responsible for Economic Growth in BRICS Countries?," The International Trade Journal, Taylor & Francis Journals, vol. 35(3), pages 243-261, May.
    16. Chris Belmert Milindi & Roula Inglesi-Lotz, 2023. "Impact of technological progress on carbon emissions in different country income groups," Energy & Environment, , vol. 34(5), pages 1348-1382, August.
    17. Yang Song & Dayu Liu & Qiaoru Wang, 2021. "The dual-financial-threshold effect in the “club convergence” of economic growth: a dynamic panel threshold model," Empirical Economics, Springer, vol. 61(5), pages 2713-2737, November.
    18. Thomas Strobel, 2010. "Institutions and Innovations as Sources of Productivity Growth Cross-Country Evidence," ifo Working Paper Series 87, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    19. Mine Yilmazer & Serkan inar, 2015. "Human Capabilities and Economic Growth: A Comparative Human Capability Index," International Journal of Economics and Financial Issues, Econjournals, vol. 5(4), pages 843-853.
    20. Manuel Ennes Ferreira & João Dias & Jelson Serafim, 2022. "Stock Market and Economic Growth: Evidence from Africa," Working Papers REM 2022/0228, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

    More about this item

    Keywords

    Human capital development; Foreign Direct Investment; Africa; panel data.;
    All these keywords.

    JEL classification:

    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:ijebaa:v:viii:y:2020:i:4:p:377-391. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ijeba.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.