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The Interaction of Human and Physical Capital Accumulation: Evidence from Sub‐Saharan Africa

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  • Robin Grier

Abstract

In this paper, a simultaneous model of the evolution of human and physical capital in Sub‐Saharan Africa is estimated. It can be shown that the two types of capital are jointly endogenous, in that increases in human capital significantly raise the per‐worker physical capital stock, and increases in the physical capital significantly raise primary education levels. Unlike the implications of other recent papers, there is no evidence that tropical climates and ethnic diversity have a negative effect on the accumulation of capital in the region.

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  • Robin Grier, 2005. "The Interaction of Human and Physical Capital Accumulation: Evidence from Sub‐Saharan Africa," Kyklos, Wiley Blackwell, vol. 58(2), pages 195-211, May.
    • Handle: RePEc:bla:kyklos:v:58:y:2005:i:2:p:195-211
    DOI: 10.1111/j.0023-5962.2005.285_1.x
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    Cited by:

    1. Voxi Heinrich AMAVILAH, 2016. "Economic Progress as Related Sets of Non-Repeating Eclipses," Journal of Economics Library, KSP Journals, vol. 3(2), pages 295-302, June.
    2. Dearmon, Jacob & Grier, Kevin, 2009. "Trust and development," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 210-220, August.
    3. Abo-Zaid Salem M, 2011. "The Trade-Growth Relationship in Israel Revisited: Evidence from Annual Data, 1960-2004," Review of Middle East Economics and Finance, De Gruyter, vol. 6(3), pages 63-93, February.
    4. Habiyaremye, Alexis, 2016. "Is Sino-African trade exacerbating resource dependence in Africa?," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 1-12.
    5. Dearmon, Jacob & Grier, Robin, 2011. "Trust and the accumulation of physical and human capital," European Journal of Political Economy, Elsevier, vol. 27(3), pages 507-519, September.
    6. Rafi Amir-ud-Din & Muhammad Usman & Faisal Abbas & Sajid Amin Javed, 2019. "Human versus physical capital: issues of accumulation, interaction and endogeneity," Economic Change and Restructuring, Springer, vol. 52(4), pages 351-382, November.
    7. Paul Eliccel, 2016. "Culture and Accumulation of Capital : An Empirical study in the Context Haitian Society [Culture et accumulation du capital : une étude empirique dans le contexte social haïtien]," Working Papers hal-01555285, HAL.
    8. Muhammad Khan & Waqas Hanif, 2020. "Institutional quality and the relationship between inflation and economic growth," Empirical Economics, Springer, vol. 58(2), pages 627-649, February.
    9. ERREYGERS, Guido & FEREDE, Tadele, 2009. "The end of subsistence farming: Growth dynamics and investments in human and environmental capital in rural Ethiopia," Working Papers 2009008, University of Antwerp, Faculty of Business and Economics.
    10. 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.
    11. Alberto Bucci & Boubacar Diallo & Simone Marsiglio, 2023. "On The Nonlinearity of the Finance and Growth Relation: the Role of Human Capital," CEIS Research Paper 567, Tor Vergata University, CEIS, revised 20 Nov 2023.
    12. Alexis Habiyaremye, 2013. "Imported Capital Goods and Manufacturing Productivity: Evidence from Botswana's Manufacturing Sector," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 581-604, December.
    13. Amavilah, Voxi Heinrich, 2014. "Knowledge = Technology + Human Capital and the Lucas and Romer Production Functions," MPRA Paper 58847, University Library of Munich, Germany.
    14. Eliccel Paul, 2017. "Culture et accumulation du capital : une étude empirique dans le contexte social haïtien," Working Papers hal-01567104, HAL.
    15. Khemais Zaghdoudi, 2018. "Is the relationship between external debt and human development non-linear? A PSTR approach for developing countries," Economics Bulletin, AccessEcon, vol. 38(4), pages 2194-2216.
    16. Amavilah, Voxi Heinrich, 2014. "Human Knowledge and a Commonsensical Measure of Human Capital: A Proposal," MPRA Paper 57670, University Library of Munich, Germany.

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