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Higher education and economic growth in Africa

Author

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  • Kwabena Gyimah-Brempong
  • Oliver Paddison
  • Workie Mitiku

Abstract

This paper uses panel data over the 1960-2000 period, a modified neoclassical growth equation, and a dynamic panel estimator to investigate the effect of higher education human capital on economic growth in African countries. We find that all levels of education human capital, including higher education human capital, have positive and statistically significant effect on the growth rate of per capita income in African counties. Our result differs from those of earlier research that find no significant relationship between higher education human capital and income growth. We estimate the growth elasticity of higher education human capital to be about 0.09, an estimate that is twice as large as the growth impact of physical capital investment. While this is likely to be an overestimate of the growth impact of higher education, it is robust to different specifications and points to the need for African countries to effectively use higher education human capital in growth policies.

Suggested Citation

  • Kwabena Gyimah-Brempong & Oliver Paddison & Workie Mitiku, 2006. "Higher education and economic growth in Africa," Journal of Development Studies, Taylor & Francis Journals, vol. 42(3), pages 509-529.
  • Handle: RePEc:taf:jdevst:v:42:y:2006:i:3:p:509-529 DOI: 10.1080/00220380600576490
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    References listed on IDEAS

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    Cited by:

    1. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Hanjra, Munir A. & Ferede, Tadele & Gutta, Debel Gemechu, 2009. "Reducing poverty in sub-Saharan Africa through investments in water and other priorities," Agricultural Water Management, Elsevier, vol. 96(7), pages 1062-1070, July.
    3. Aziz, Babar & Khan, Tasneem & Aziz, Shumaila, 2008. "Impact of Higher Education on Economic Growth of Pakistan," MPRA Paper 22912, University Library of Munich, Germany, revised 2008.
    4. Hassan, Gazi & Cooray, Arusha, 2015. "Effects of male and female education on economic growth: Some evidence from Asia," Journal of Asian Economics, Elsevier, vol. 36(C), pages 97-109.
    5. Teemu Makkonen, 2012. "The competitive advantage of a peripheral university town: Human and social capital perspectives from Joensuu, Finland," ERSA conference papers ersa12p621, European Regional Science Association.
    6. Benos, Nikos & Zotou, Stefania, 2014. "Education and Economic Growth: A Meta-Regression Analysis," World Development, Elsevier, vol. 64(C), pages 669-689.
    7. Wasim Qazi & Syed Raza & Syed Jawaid, 2014. "Higher education and growth performance of Pakistan: evidence from multivariate framework," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1651-1665, May.
    8. Johnson, Ane Turner & Hoba, Pascal, 2015. "Rebuilding higher education institutions in post-conflict contexts: Policy networks, process, perceptions, & patterns," International Journal of Educational Development, Elsevier, vol. 43(C), pages 118-125.
    9. Sen, Kunal, 2013. "The Political Dynamics of Economic Growth," World Development, Elsevier, vol. 47(C), pages 71-86.
    10. Francis Teal, 2010. "Higher Education and Economic Development in Africa: a Review of Channels and Interactions," CSAE Working Paper Series 2010-25, Centre for the Study of African Economies, University of Oxford.
    11. Boopen SEETANAH & viraiyan teeroovengadum, 2017. "Higher Education and Economic Growth: Evidence from Africa," Proceedings of Economics and Finance Conferences 4807254, International Institute of Social and Economic Sciences.
    12. Zhang, Chuanguo & Zhuang, Lihuan, 2011. "The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis," China Economic Review, Elsevier, vol. 22(1), pages 165-171, March.
    13. Apanisile Muyiwa Tolulope & Akinlo Taiwo, 2014. "Growth Effects of Health Inputs and Outcomes in Sub-Sahara African Countries (1995-2011)," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(6), pages 705-714, June.
    14. Panagiotis PEGKAS & Constantinos TSAMADIAS, 2015. "Does Formal Education At All Levels Cause Economic Growth? Evidence From Greece," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 15, pages 9-32, June.
    15. Nelson Oviedo & Gustavo Yamada, 2017. "Educación superior y subempleo profesional, ¿Una creciente burbuja mundial?," Working Papers 1609, Departamento de Economía, Universidad del Pacífico, revised Feb 2017.
    16. El Alaoui, Aicha, 2015. "Impact of women’s education on the economic growth: An empirical analysis applied to Morocco, Algeria, Tunisia, and Egypt," MPRA Paper 69787, University Library of Munich, Germany.
    17. Mine Yilmazer & Serkan Çinar, 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.
    18. André Mollick, 2011. "The world elasticity of labor substitution across education levels," Empirical Economics, Springer, vol. 41(3), pages 769-785, December.
    19. Francis Teal, 2010. "Higher Education and Economic Development in Africa: a Review of Channels and Interactions," Economics Series Working Papers CSAE WPS/2010-25, University of Oxford, Department of Economics.
    20. Fatema Alaali & Jennifer Roberts & Karl Taylor, 2015. "The Effect of Energy Consumption and Human Capital on Economic Growth: An Exploration of Oil Exporting and Developed Countries," Working Papers 2015015, The University of Sheffield, Department of Economics.
    21. Kobil Ruziev & Davron Rustamov, 2016. "Higher education in Uzbekistan: reforms and the changing landscape since independence," Working Papers 20161604, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
    22. Bahar Bayraktar-Sağlam, 2016. "The Stages of Human Capital and Economic Growth: Does the Direction of Causality Matter for the Rich and the Poor?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 243-302, May.
    23. Turan, Güngör, 2016. "Türkiye'de Yüksek Öğretim ve Ekonomik Büyüme
      [Higher Education and Economic Growth in Turkey]
      ," MPRA Paper 77778, University Library of Munich, Germany.

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