Financing Human Capital In Waemu Countries: Panel Data Analysis Of The Impact Of Education And Health Expenditure Sources[Financement Du Capital Humain Dans Les Pays De L'Uemoa : Analyse En Donnees De Panel De L'Impact Des Sources De Depenses De L'Education Et La Sante]

Significant funds have been allocated to human capital, yet developing countries still have extremely low levels of human capital. This paper aims to determine the sources of expenditure impacting human capital in WAEMU countries over the period 2000-2019. Using an error-correction panel model that takes into account the violation of classical assumptions (autocorrelation and heteroscedasticity of residuals), the results show that GDP per capita and inward foreign direct investment (FDI) have a positive long-term impact on the human capital index at the five per cent threshold. In addition, public expenditure and migrant remittances have a significant negative impact on human capital in the long run. However, the effect of public spending in the short run is positive. By adopting a better reallocation of created wealth (optimal distribution of value added, social inclusion), advocating attractiveness policies and providing more in human capital expenditure (investments, subsidies), states would be able to raise the level of human capital. A monetary policy within the WAEMU that allows for a better capture of migrant remittances could favour the development of human capital.