scholarly journals Human Capital Development and Economic Growth Nexus in Zimbabwe

2019 ◽  
Vol 23 ◽  
Author(s):  
Sanderson Abel ◽  
Nyasha Mhaka ◽  
Pierre Le Roux
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Positive Impact ◽  
Labour Force ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
The Relationship

This study empirically examined the relationship between human capital development and economic growth in Zimbabwe for the period 1980 to 2015, using time series analysis techniques of co-integration, error correction model, and Granger causality tests. The study was motivated by changes which have characterised the financing of human capital since the country attained independence. A decade after independence, the government was able to adequately finance the social sectors; however, thereafter government financing has been declining since the adoption of the structural adjustment programme. The findings of this study indicate the existence of a short-run and long-run relationship between human capital development and economic growth in Zimbabwe. On the direction and significance of the relationship, the result is mixed. Human capital development, proxied by government expenditure on health, had a significant positive impact on economic growth—both in the short run and the long run—reaffirming that a healthy labour force will be more productive and efficient. Human capital development, proxied by government expenditure on education, was found to negatively impact economic growth in the long run. In conclusion, a positive relationship between human capital development and economic growth in Zimbabwe was found, although the relationship is weak.

scholarly journals Sources of Economic Growth in Zambia: An Empirical Investigation

2017 ◽  
Vol 18 (2) ◽  
pp. 275-290 ◽  
Author(s):  
Themba G. Chirwa ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
International Trade ◽  
Foreign Aid ◽  
Development Aid ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

In this article, the key macroeconomic determinants of economic growth in Zambia are investigated using the autoregressive distributed lag (ARDL) bounds testing approach. The study has been motivated by the unsustainable growth trends that Zambia has been experiencing in recent years. Our study finds that the key macroeconomic determinants that are significantly associated with economic growth in Zambia include, amongst others, investment, human capital development, government consumption, international trade and foreign aid. The study’s results reveal that in the short run, investment and human capital development are positively associated with economic growth, while government consumption, international trade and foreign aid are negatively associated with economic growth. However, in the long run, the study finds investment and human capital development to be positively associated with economic growth, while only foreign aid is negatively associated with economic growth. These results have significant policy implications. They imply that short–run economic policies should focus on creating incentives that attract investment and increase the quality of education, the effectiveness of government institutions, the promotion of international trade reforms and the effectiveness of development aid. In the long run, development strategies should focus on attracting the accumulation of long-term investment, improving the quality of education and the effectiveness of development aid.

scholarly journals A contribution to the human capital investment debate vis-à-vis economic growth: the case for Nigeria

2021 ◽  
Vol 1 (1) ◽  
pp. 15-28
Author(s):  
Lasbrey ANOCHIWA ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Investment ◽  
Growth Limitation ◽  
Human Capital Development ◽  
Education And Health ◽  
Long Run ◽  
Growth Development ◽  
Capital Development ◽  
The Relationship

Purpose: Human capital development is essentially vital in enhancing economic growth and Nigeria needs to grow. This study investigates the contribution of human capital to growth in Nigeria. Research methodology: We have disaggregated the article's variables into different models, for a better result. We employed the Autoregressive Distribution Lag (ARDL) framework to examine the relationship between the variables. E-views software was used as applied in Akbari, Chude and Chude (2013). Result: The result shows that there exists a long-run relationship between the human capital indices, education and health in Nigeria and economic growth. Though the coefficient is positive but has a statistically insignificant relationship with human capital development and economic growth. Limitation: The study was hindered by the availability of data. Contribution: It is satisfactory to know from the study that human capital is still relevant in explaining growth in Nigeria. Keywords: Human capital, Economic growth, Development

Impact of Selected Macroeconomic Determinants on Economic Growth in India: An Empirical Study

2018 ◽  
Vol 22 (4) ◽  
pp. 405-415 ◽  
Author(s):  
Rajesh Sharma ◽  
Pradeep Kautish ◽  
D. Suresh Kumar
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Exchange Rate ◽  
Foreign Aid ◽  
Consumption Expenditure ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Capital Development ◽  
Macroeconomic Determinants

Due to the socio-economic, infrastructural and governance peculiarities, identification of key macroeconomic factors determining the economic growth in developing countries becomes a complicated case. The present study attempts to assess the impact of foreign aid, government consumption expenditure, foreign direct investment, trade openness, exchange rate, human capital development, and inflation on economic growth in India by using yearly data for the period of 46 years, that is, from 1971 to 2016. An autoregressive distributed lag (ARDL) bounds model enables to examine the short-run and long-run impact of selected determinants on economic growth during the study period. The outcomes of the study find that in the long run, foreign aid, the government’s final consumption expenditure and foreign direct investment have a positive and significant impact on economic growth, whereas, economic growth has been negatively influenced by exchange rate and human capital development. Contrary to the long run, foreign aid has a negative and significant impact on economic growth in the short run. The short-run outcomes show that all the selected macroeconomic determinants have either negative or positive influence on economic growth. To ensure the long-run economic growth, besides regulating the exchange rate fluctuations, policies related to export -import and human capital development need to be re-examined.

scholarly journals The Effects of Human Capital by Gender on Economic Growth

2021 ◽  
Vol 12 (1) ◽  
pp. 113
Author(s):  
Mohd Shahidan Shaari ◽  
Razinda Tasnim Abdul Rahim ◽  
Nor Hidayah Harun ◽  
Faiz Masnan
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Labour Force ◽  
Labour Force Participation ◽  
Participation Rates ◽  
Long Run ◽  
Job Opportunities ◽  
Short Run ◽  
The Government ◽  
Male Labour

The issue of human capital by gender has been sparsely discussed in previous literature especially male labour force. The contribution of both genders to economic growth has intensified every year. Therefore, this study aims to investigate the effects of human capital by gender on economic growth in Malaysia. Data ranging from 1982 to 2018 were analysed by using the ARDL approach. The results show that higher male labour force participation rates can boost economic growth in the short run and long run in Malaysia. Higher female labour force participation rates, on the other hand, can reduce economic growth in the short run and long run in Malaysia. Therefore, the government should encourage more male labour to participate in the labour market by giving incentives. More job opportunities should be created for both genders.

scholarly journals Does human capital development matter in FDI location decisions? A case for Austria

2015 ◽  
Vol 5 (3) ◽  
pp. 26-35
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Human Capital ◽  
Causal Relation ◽  
The Other ◽  
Location Decisions ◽  
Human Capital Development ◽  
Correction Model ◽  
Long Run ◽  
Causality Relationship ◽  
Capital Development ◽  
The Relationship

This paper investigates the relationship between human capital development and foreign direct investment (FDI). In particular, the direction of causality between these two variables is the main focus of this study. This study has been necessitated by the failure by many previous researchers to concur on the causal relationship between FDI and human capital development. Some authors argue that there is a uni-directional causality relationship running from FDI to human capital development whilst others are saying the causality runs the other way round from human capital development to FDI. The other group of authors says there is a bi-directional relationship between these two variables whilst the fourth and last group of authors maintains that there exist no causal relation at all between FDI and human capital development. Using the lagged error correction model (ECM), the study observed that FDI measured by FDI, net inflows (% of GDP) was Granger caused by human capital development (proxied by pupil-teacher ratio) both in the short and long run. However, the null hypothesis which says that FDI Granger caused human capital development was rejected both in the short and long run. The author therefore recommends the intensification of teacher-pupil ratio improvement programmes in order not only to increase FDI inflow but to ensure Austria benefits from that increased FDI inflow

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

scholarly journals Domestic Resource Mobilization and Human Capital Development in Sub- Saharan Africa

2021 ◽  
Vol 27 (4) ◽  
pp. 504-533
Keyword(s):  
Human Capital ◽  
Capital Accumulation ◽  
Resource Mobilization ◽  
Human Capital Accumulation ◽  
Human Capital Development ◽  
Long Run ◽  
Short Run ◽  
Two Measures ◽  
Capital Development ◽  
Domestic Resource

This study investigates the nexus between domestic resource mobilization using aggregated and disaggregated taxes, and human capital accumulation as measured by the index of human capital and total factor productivity. The study explores panel Autoregressive Distributed Lag. We further explore the linear and nonlinear effects of taxes on human capital accumulation. The results from the scatterplots show that taxes at aggregate and disaggregated levels positively correlated with the two measures of human capital. On the linear analysis, the impact of aggregated and disaggregated taxes is largely negative under the index of human capital but largely positive under the second measure in the short-run. However, the long-run results indicate that aggregate and disaggregated taxes significantly amplify human capital accumulation. On nonlinearity, there is no presence of human capital laffer curve (HCLC) in the short-run under the two measures of human capital. However, there is presence of HCLC in the long-run. The net effects results show that some taxes (such as indirect taxes, taxes on goods and services) are distortionary in improving the level of human capital development while some taxes (such as total tax, direct tax, taxes on income, profit, and gains) can distort human capital development in the SSA region.

scholarly journals Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kesuh Jude Thaddeus ◽  
Chi Aloysius Ngong ◽  
Njimukala Moses Nebong ◽  
Akume Daniel Akume ◽  
Jumbo Urie Eleazar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Content Type ◽  
Capital Development ◽  
Macroeconomic Determinants ◽  
The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

scholarly journals Human Capital Development, Economic Rejuvenation and Stable Long-Term Growth: The Case of Nigeria

2014 ◽  
Vol 27 ◽  
pp. 202-214
Author(s):  
Martins Iyoboyi
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Development Economic ◽  
Bounds Testing ◽  
Human Capital Development ◽  
Long Run ◽  
Stable Growth ◽  
The Stability ◽  
Capital Development

The paper investigates the relative impact of human capital development on economic rejuvenation and growth in Nigeria form 1981 to 2010, using the bounds testing approach to cointegration. The study utilized a combined proxy of education and health to capture the influence of human capital on growing and consequently rejuvenating an economy. Fixed capital and human capital were found to be positively associated with economic growth in both the short and long run, while Granger-causing economic growth in the period of study, implying the imperatives of using them to rejuvenate an economy. The stability of the coefficients of the estimated model is confirmed by the CUSUM and CUSUMSQ tests. The paper showed that for Nigeria’s economic rejuvenation and long-term stable growth, emphasis should be placed on deliberately developing the country’s vast human resources.

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