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The Impact of Human Capital on Economic Growth: Empirical Evidence from Sudan

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  • Khalafalla Ahmed Mohamed Arabi
  • Suliman Zakaria Suliman Abdalla

Abstract

This paper empirically investigates the impact of human capital on economic growth in Sudan for the period 1982-2009 by using a simultaneous equation model that links human capital i.e. school attainment; and investment in education and health to economic growth, total productivity, foreign direct investment, and human development index. Based on three-stage least squares technique, the empirical results of the paper show that quality of the education has a determinant role in the economic growth; health quality factor has a positive impact on economic growth as expected and total factor productivity which mainly represents the state of technology has adverse effect on economic growth and human development due to the obsolete and old fashion technology.

Suggested Citation

  • Khalafalla Ahmed Mohamed Arabi & Suliman Zakaria Suliman Abdalla, 2013. "The Impact of Human Capital on Economic Growth: Empirical Evidence from Sudan," Research in World Economy, Research in World Economy, Sciedu Press, vol. 4(2), pages 43-53, September.
  • Handle: RePEc:jfr:rwe111:v:4:y:2013:i:2:p:43-53
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    References listed on IDEAS

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    1. Mikael Lindahl & Alan B. Krueger, 2001. "Education for Growth: Why and for Whom?," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1101-1136, December.
    2. Bassanini, Andrea & Scarpetta, Stefano, 2002. "Does human capital matter for growth in OECD countries? A pooled mean-group approach," Economics Letters, Elsevier, vol. 74(3), pages 399-405, February.
    3. Arvanitidis, Paschalis & Petrakos, George & Pavleas, Sotiris, 2007. "Determinants of economic growth: the experts’ view," Papers DYNREG20, Economic and Social Research Institute (ESRI).
    4. Nour, Samia Satti Osman Mohamed, 2010. "Assessment of science and technology indicators in Sudan," MERIT Working Papers 062, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. repec:mes:jeciss:v:26:y:1992:i:2:p:615-622 is not listed on IDEAS
    6. Paul Cheshire & Stefano Magrini, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Wiley Blackwell, vol. 31(4), pages 455-479.
    7. María Jesús Freire-Serén, 2001. "Human capital accumulation and economic growth," Investigaciones Economicas, Fundación SEPI, vol. 25(3), pages 585-602, September.
    8. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    9. Welch, F, 1970. "Education in Production," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 35-59, Jan.-Feb..
    10. Yasmina Reem Limam & Stephen M. Miller, 2004. "Explaining Economic Growth: Factor Accumulation, Total Factor Productivity Growth, and Production Efficiency Improvement," Working papers 2004-20, University of Connecticut, Department of Economics.
    11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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