Open AccessEconomic Growth and Quality Adjusted Human Capital Equation: Moderating Role of Social Capabilities in Africa
Author(s) -
Tonuchi E. Joseph,
Pauline Chimuru Obikaonu
Publication year - 2021
Publication title -
applied journal of economic managemnet and social sciences
Language(s) - English
Resource type - Journals
ISSN - 2811-1613
DOI - 10.53790/ajmss.v2i2.19
Subject(s) - nexus (standard) , human capital , per capita , economics , per capita income , social capital , developing country , development economics , physical capital , quality (philosophy) , economic growth , social science , sociology , population , philosophy , demography , epistemology , computer science , embedded system
The role of human capital on economic growth across countries has over time garnered lots of discussion in economic literature. This is fundamental, given that the actual determinant of the difference in income per capita across countries or why some countries are growing faster than other countries has remained an unresolved issue. This study provides a different insight into the nexus between human capital and economic growth by accounting for the role of social capabilities in a panel framework. Specifically, the study covers 40 African countries between 1998-2019, where the General Method of Moment (GMM) was employed to estimate the model. Specifically, it was discovered that without improved legal institutions and better economic opportunities, human capital impact on the growth of income per capita across countries is insignificant though positive. The study concludes that the effectiveness of knowledge accumulation and adoption of technology in a country is hinged on the availability of an enhanced legal, social, and economic environment.