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Determinants Of Human Capital Development In Africa: A Panel Data Analysis

Author

Listed:
  • Mohammed Shuaibu

    (Ahmadu Bello University, Nigeria)

  • Popoola Timothy Oladayo

    (Ahmadu Bello University, Nigeria)

Abstract

Africa is regarded as the least developed continent in terms of overall development and specifically in terms of human capital development (HCD) efforts. Research on the determinants of HCD in Africa is scanty, as the literature is dominated by country-specific studies as well as group of country studies that primarily focus on the effect of human capital on growth and other economic development parameters. Therefore, this paper investigates the determinants of human capital development in 33 African countries over a 14-year period from 2000 to 2013. The empirical analysis is predicated on Sen’s capability approach that was modified following Binder and Georgiadis (2011) in order to explicitly account for the role of health, infrastructure and institutions as potential drivers of HCD. This is a departure from previous studies that focused primarily on the role of education. In addition to preliminary tests such as line plot, descriptive statistics and correlation analysis carried out, the data is analysed using panel unit root, co-integration and causality techniques. Findings show that all the variables are integrated of order one while HCD and its determinants have a stable long-run equilibrium relationship. Specifically, all the variables significantly influence HCD in the long run, whereas the contemporaneous models suggest that only institutions matter. Utilizing alternative estimators as well as estimation of subsamples, robustness tests reinforce our findings. Therefore, African governments may consider supporting HCD through sustained investment in the education and health sectors. At the same time, short-term gains may be attained through enhanced institutional quality and infrastructure development.

Suggested Citation

  • 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.
    • Handle: RePEc:pes:ieroec:v:7:y:2016:i:4:p:523-549
    DOI: 10.12775/OeC.2016.030
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    2. repec:mje:mjejnl:v:12:y:2017:i:3:p:31-42 is not listed on IDEAS
    3. MT Musakwa & N.M. Odhiambo, 2021. "Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data," Working Papers AESRI-2021-12, African Economic and Social Research Institute (AESRI), revised Oct 2021.
    4. Adewale Samuel Hassan & Daniel Francois Meyer & Sebastian Kot, 2019. "Effect of Institutional Quality and Wealth from Oil Revenue on Economic Growth in Oil-Exporting Developing Countries," Sustainability, MDPI, vol. 11(13), pages 1-14, July.
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    6. Musakwa Mercy T. & Odhiambo Nicholas M., 2022. "Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(2), pages 1-23, June.
    7. AIYEDOGBON John O & OLOGUNLA Emmanuel Sunday & SHAGI Zabwari Abdu, 2024. "Impact of Taxation on Human Capital Development in Nigeria: 1994-2022," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(7), pages 1624-1637, July.
    8. Akpa, Emeka & Onuoha, Henry & Nwakpa, Friday, 2018. "Human as Capital: An Imperative for Africa," MPRA Paper 87770, University Library of Munich, Germany.
    9. Bagrat Yerznkyan & Lily Gassner & Anna Kara, 2017. "Culture, Institutions, and Economic Performance," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 13(2), pages 71-80.
    10. 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.
    11. Emon Kalyan Chowdhury & Rupam Chowdhury, 2024. "Role of Financial Inclusion in Human Development: Evidence from Bangladesh, India and Pakistan," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3329-3354, March.
    12. Musakwa, Mercy T & Odhiambo, Nicholas M, 2021. "Energy consumption and human development in South Africa: Empirical evidence from disaggregated data," Working Papers 28233, University of South Africa, Department of Economics.
    13. Elena Sochirca & Pedro Cunha Neves, 2020. "Optimal policies, middle class development and human capital accumulation under elite rivalry," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 727-744, December.
    14. Anna Busłowska & Beata Wiśniewska, 2017. "The Bialystok Functional Area Competency Center as an example of development of human capital," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 16(4), pages 371-385, December.
    15. repec:mje:mjejnl:v:12:y:2017:i:2:p:71-80 is not listed on IDEAS
    16. Md. Qamruzzaman & Salma Karim, 2020. "ICT Investment Impact on Human Capital Development through the Channel of Financial Development in Bangladesh: An Investigation of Quantile ARDL and Toda-Yamamoto Test," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 9, September.
    17. Chengjuan Xia & Md. Qamruzzaman & Anass Hamadelneel Adow, 2022. "An Asymmetric Nexus: Remittance-Led Human Capital Development in the Top 10 Remittance-Receiving Countries: Are FDI and Gross Capital Formation Critical for a Road to Sustainability?," Sustainability, MDPI, vol. 14(6), pages 1-24, March.
    18. Ebele S. Nwokoye & Stephen K. Dimnwobi & Favour C. Onuoha & Chekwube V. Madichie, 2024. "Does Public Debt Matter for Human Capital Development? Evidence from Nigeria," Working Papers 24/006, European Xtramile Centre of African Studies (EXCAS).
    19. Jamiu Adetola Odugbesan & Husam Rjoub, 2019. "Relationship among HIV/AIDS Prevalence, Human Capital, Good Governance, and Sustainable Development: Empirical Evidence from Sub-Saharan Africa," Sustainability, MDPI, vol. 11(5), pages 1-17, March.
    20. Margarita Marija Lietuvnikė & Aidas Vasilis Vasiliauskas & Virgilija Vasilienė-Vasiliauskienė & Jolanta Sabaitytė, 2018. "Peculiarities of illegal immigrant’s intrusions into road freight transport units in the France - UK corridor," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 5(3), pages 634-647, March.
    21. Mercy T. Musakwa & Nicholas M. Odhiambo, "undated". "Energy Consumption And Human Development In South Africa: Empirical Evidence From Disaggregated Data," Working Papers AESRI03, African Economic and Social Research Institute (AESRI).
    22. Ebele S. Nwokoye & Stephen K. Dimnwobi & Favour C. Onuoha & Chekwube V. Madichie, 2024. "Does Public Debt Matter for Human Capital Development? Evidence from Nigeria," Working Papers of the African Governance and Development Institute. 24/006, African Governance and Development Institute..
    23. Evans, Olaniyi, 2022. "The criticality of institutions and the macroeconomy for education outcomes in Africa," MPRA Paper 118197, University Library of Munich, Germany.

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    More about this item

    Keywords

    human capital; Africa; health; education; panel data analysis;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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