Top PDF The Impact of Human Capital on Economic Growth in Ethiopia

The Impact of Human Capital on Economic Growth in Ethiopia

The Impact of Human Capital on Economic Growth in Ethiopia

in African countries Eggoh, Houeninvob &Sossoub (2015) found human capital stock (school enrollment and life expectancy at birth) have positive effect on economic growth. However, human capital investment (public expenditures on education and health) has a negative impact on economic growth. They used school enrollments and life expectancy as proxy for human capital stock and public expenditure on education and health for human capital investment. Victoria (2015) examined the impact of human capital on economic growth in Nigeria using education and health expenditure, primary school enrollment, secondary school enrollment and tertiary school enrollment as proxy for human capital investment and accumulation; and the findings the study indicate that public expenditure on health, secondary and tertiary enrollment rate have significant positive effect on economic growth. However, government expenditure on education and primary enrolment rate has not. Furthermore, Adawo (2011) analyzed contribution of human capital to economic growth in Nigeria using school enrollments at various levels and total expenditure on health proxies for human capital. All primary school input and health were found to contribute to growth. However, Secondary school input and tertiary institutions were found to dampen growth. Alireza, Teymour & Maryam (2014) surveyed the effect of human capital on economic growth in Oil Rich Countries using health expenditure and they found that human capital has no effect on economic growth in African Countries. From these studies, therefore, we can use different variables to represent human capital stock and investment. We use school enrollment as a proxy of human capital stock and public expenditure on education and health as a proxy of human capital investment. Human capital stock and human capital investment variables together represent human capital accumulation and hence inter into macroeconomic model to see their effect on economic growth.
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The Impact of  Human Capital Development on Economic Growth in Ethiopia: Evidence from ARDL Approach to Co-Integration

The Impact of Human Capital Development on Economic Growth in Ethiopia: Evidence from ARDL Approach to Co-Integration

The main objective of the study is to analyze the impact of human capital on economic growth in Ethiopia. The methodology used in this research is ARDL Approach to Co-integration. The finding of this research shows that there is a stable long run relationship between real GDP per capita, education human capital, health human capital, labor force, gross capital formation, government expenditure and official development assistance. The estimated long run model indicates that human capital in the form of health have big positive impact on real GDP per capita rise followed by education human capital. Such findings are consistent with the endogenous growth theories. In the short run, the coefficient of the error correction term is -0.7366 suggesting about 73.66 percent annual adjustment towards long run equilibrium. The findings of this paper imply that an economic performance can be improved significantly when the ratio of public expenditure on health to GDP increases and when secondary school enrolments get better.
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THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH IN
NIGERIA; AN EMPIRICAL ANALYSIS

THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH IN NIGERIA; AN EMPIRICAL ANALYSIS

In Nigeria, the rate of illiteracy is very high and life expectancy is very low. Most of the workers are unskilled and less productive. They make use of outdated capital, equipment and methods of production. By implication, their marginal productivity is extremely low and this leads to low real income, low savings, low investment and consequently low rate of capital formation. Therefore the strategy aimed at empowering the citizenry to acquire the skills and knowledge that would prepare them for the vast challenges. Overtime become necessary, the following issues relating to human capital have remained unresolved: Uneven distribution of skilled and unskilled manpower and Misemployment of human capital in Nigeria. Most disturbing is poor reward system retarding the acquisition and development of human capital. Despite the fact that human capital has been identified as forerunner for a sustainable development and rapid economic growth, the Nigeria government has given little attention to development of education sector and provision of health care sector. Also, according to the Global Development Network and Center for the study of the Economies of Africa (2010), the Nigeria government has given less concern to spending on education which is reflective of the amount allocated to the sector as a percentage of GDP. For instance average expenditure on education as a percentage of GDP stood at 0.85% for the period 2002 to 2009 and 0.85% for 2010 to 2013 respectively (CBN, 2013). Therefore it is against this background that this study sets out to empirically investigate the impact of human capital development on the economic growth of Nigeria. Therefore this study seeks to empirically examine the impact of human capital development on economic growth and development within the context of Nigerian economy over the period under study (1980-2017). The study also examines the impact of population growth, as well as the impact of government expenditures on health and education on economic growth of Nigeria during the period of study.
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The Impact of Remittance on Economic Growth of Ethiopia

The Impact of Remittance on Economic Growth of Ethiopia

The purpose of this study was to investigate whether or not international remittances enhance economic growth in Ethiopia. Data for the period 1984-2017 from World Development Indicator and Ethiopia Ministry of Education annual statistical Bulletin was used. To investigate the impact international inflow remittances, foreign direct investment net inflow, inflation, general government final consumption expenditure, gross fixed capital formation, openness to international trade, human capital and population growth were also included. The study employed an aggregate Cobb-Douglas production function. Augmented Dickey Fuller tests were used to test for non Stationarity of the variables. It was found that all variables were integrated of order one. In addition, Johansen Cointegration test was employed to determine whether or not the variables were cointegrated. Error correction model was employed to estimate short – run and long run relationship using ordinary least square technique. The study found that in the long run General government final consumption expenditure, openness to international trade, human capital and Population growth where as in short run foreign direct investment net inflow had both positive and significant impact on economic growth. Additionally in the long run Inflow remittances, Inflation and foreign direct investment net inflows and in the short run inflation, Openness to international trade and Human capital (secondary school enrolment) had both negative and significant. This was in contrast with the expected result of positive and significance impact on economic growth rate. Gross fixed capital formation in long run where as remittance inflow, general government final consumption expenditure and human capital (secondary school enrolment) were found to be insignificant and no impact economic growth.
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The Impact of Human Capital on Economic Growth: Evidence from Selected Asian Countries

The Impact of Human Capital on Economic Growth: Evidence from Selected Asian Countries

India had a population of 111.2 million in 2008 with a population density of and literacy rate of 81 % (World Development Indicators, 2010). Abbas (2001) found positive impact of human capital on economic growth in India. Primary and secondary education significantly affects economic growth in India while the effects of higher education seemed insignificant. Education increase productivity, creativity and technological advancement which leads to accelerate the economic growth rate of a country (Ozturk, 2008). The GDP per capita growth in India has been slow in 1970s, fast in 1980s but again slow in 1990s (Pissarides,2000).Bangladesh which got independence from Pakistan in 1971 has a population of 154038 thousands while the state of Sri Lanka consists of 21129 thousand in 2008 people.
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Privatization Impact on Economic Growth in Ethiopia: ARDL Approach

Privatization Impact on Economic Growth in Ethiopia: ARDL Approach

The objective of this paper is as to check whether privatization has long run or short run significant impact on economic growth of Ethiopia by considering real GDP growth as a proxy for economic growth and privatization proceeds as to the measure of the magnitude of privatization. A time series data starting form 1994/95S1 up to 2016/17S2 using some explanatory and response variables. Autoregressive Distributed Lag (ARDL) method to characterize long run and the short run relationship between real GDP growth and independent variables was used. The empirical results reveal that both privatization and foreign direct investment due to privatization are found to have a positive impact on economic growth and statically significant at 1 & 5 percent respectively in the long run as well as in the short run. While, inflation and government consumption proxy to corruption affects economic growth negatively in the long run. The unexpected result of private domestic investment had a negative sing and insignificant in the long run. This study has an important policy implication. The findings of this study imply that economic growth can be improved significantly when the privatization police accompanied with other structural change was implemented. Hence policy makers and /or the government should strive to strengthen privatization policies together with other policies. In addition to this effort, there should be a close monitoring and consistent government consumption and budget monitoring strategies, which is used to avoid misallocation and mismanagement of consumption.
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THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH IN ZAMBIA: AN ECONOMETRIC ANALYSIS

THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON ECONOMIC GROWTH IN ZAMBIA: AN ECONOMETRIC ANALYSIS

The results of our study reveal that long-run economic performance can be improved significantly when the ratio of public expenditure on health services increases and when secondary school enrolment improves. The findings of this research concerning the long run positive impact of the education and health human capital are consistent with the endogenous growth theories [mainly advocated and/or developed by Lucas (1988) , Romer (1990), Mankiw, Romer and Weil (1992)] which argue that improvement in human capital (skilled and healthy workers) leads to productivity improvement and thereby output growth. These results are identical to those obtained by Kidanemirium (2013) for Ethiopia.
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The Impact of Human Capital Development on Economic Growth in Nigeria: 1980-2012

The Impact of Human Capital Development on Economic Growth in Nigeria: 1980-2012

Having conducted the unit root and cointegration tests, we proceeded to obtain the long-run results of the relationship between human capital development and economic growth using the ordinary least squares method. The result presented in Table III reveals that all the variables in the model (except the Education contribution to Gross Domestic Product in Nigeria (GCE), Primary School enrolment rate (PER)) satisfy the a priori expectations with respect to their signs. But the Education contribution to Gross Domestic Product in Nigeria (GCE), Primary School enrolment rate (PER) has negative impact on economic growth. The result further shows that the Education contribution to Gross Domestic Product in Nigeria (GCE) has significant impact on economic growth at 10 percent significant level in the long-run. This means that a unit increases in the Education contribution to Gross Domestic Product in Nigeria (GCE) will decrease gross domestic product by 2.18 percent. Similarly, the Primary School enrolment rate (PER) has a negative and statistically insignificant impact on growth at 10 percent significant level in the long-run. The impact of the Secondary School enrolment rate (SER) and Tertiary Institutions enrolment rate (TER) on growth though positive but are not statistically significant at 10 percent significant level in the long-run. On the other hand, Health contribution to Gross Domestic Product in Nigeria (GCH) has positive and statistically significant impact on growth. This means that a unit increases in Health contribution to Gross Domestic Product in Nigeria (GCH) will increase gross domestic product by 1.784 percent in the long-run. The adjusted R 2 of 0.838 percent indicates that 84 percent of the variations in the dependent variable are explained by variations in the independent variables and the Durbin Watson statistic of 1.66 suggests that the model is free from serial auto correlation.
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The impact of remittance on economic growth and poverty reduction in Ethiopia

The impact of remittance on economic growth and poverty reduction in Ethiopia

In present studies examines that remittance has significant impact on economic growth by reducing income inequalities and has also significant contribution in poverty alleviation by redu[r]

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The Analysis of the Impact of Human Capital on Economic Growth in EU Countries

The Analysis of the Impact of Human Capital on Economic Growth in EU Countries

růstem, který je však plný rozporů. Jedná se o nepřesnost ukazatelů lidského kapitálu. Databáze používaná k této studii může potvrdit nebo vyvrátit pozitivní vztah mezi vzděláním a hospodářským růstem. Vzorek 120 zemí je sledován v časovém období 1960–2005. Tato práce vytváří novou metodiku kvalitativních ukazatelů lidského kapitálu (QIHC – Qualitative Indicators of Human Capital). Mezinárodní průzkumy se týkají hodnocení dovedností žáků v oblasti matematiky, přírodních věd a čtení. Přínosem této práce je začlenění nových zemí se středními nebo nízkými příjmy. Analýza obsahuje vzorek 27 zemí subsaharské Afriky. Výsledky odhalily pozitivní a významný vliv vzdělání na hospodářský růst. Důležitou roli hraje také kvalita vzdělání, a pokud budeme brát tento kvalitativní rozměr vzdělání v úvahu, zjistíme pozitivní vztah. Závěrem vyplývá, že kvalita vzdělání je důležitým faktorem růstu.
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The impact of foreign aid on economic growth of Ethiopia

The impact of foreign aid on economic growth of Ethiopia

This result is consistent with several studies in developing countries: Griffin and Enos (1970) and Voivodas (1973).In Ethiopia, the result is consistent with Abeba (2002) that the insig[r]

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The Impact of Physical and Human Capital on The Economic Growth of Agricultural Sector  in South Sumatera

The Impact of Physical and Human Capital on The Economic Growth of Agricultural Sector in South Sumatera

In addition, education and health also affects the quality of human resources in South Sumatra. The level of public health can be looked from a variety of indicators, one of which is the life expectancy. If life expectancy increases, so meaning it will significantly improve health and economic growth (Notoatmojo, 2010), According to BPS (2017), during the years of 2010-2015, there was an increase of 68.34-69.14% in public health which impact on the quality of labor and resulting output in the economy. Health development can drive economic growth (Tjiptoherijanto and Soesetyo, 1994). The more subdued health development, then labor productivity will be higher so as to carry out activities with the efficient production and improve competitiveness and accelerate economic growth. Although GDP of South Sumatera has increased quantitively over the past 6 years, but its growth tends to be fluctuative. Real conditions outlined above demonstrates that economic growth could be seen from the value of GDP. Agriculture, education, labor, and health are fluctuative from year to year and those are not accorded with the increasing of the education workforce, health, capital expenditures, and the amount of labor which it should make an increase in economic growth as well. Based on this background, this study aims to analyze the effect of capital expenditure, education, labor, health, and labor to economic growth in South Sumatra.
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Impact of Human Capital on Economic Growth

Impact of Human Capital on Economic Growth

S ohledem na tyto trendy bylo cílem této práce tedy nejprve prokázat pozitivní vliv lidského kapitálu na dlouhodobý ekonomický r ů st ve vysp ě lých zemích a následn ě zjistit, zda [r]

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Impact of Foreign Capital inflows on Economic Growth and Self-employment in Ethiopia

Impact of Foreign Capital inflows on Economic Growth and Self-employment in Ethiopia

For Dicken (2007), MNCs production activities in their host countries may lead to expansion in the economies of their hosts by connecting several small businesses that support their host economies. They do this by giving contracts to local firms to provide certain goods and services, employing citizens of their host countries and providing access to a global market. Studies in economics recognize these channels through which linkages between domestic and foreign firms exist as a spillover effect (Dunning, 2000; Harris 2009). Due to spillover effect, the prices of certain commodities, usually locally sourced raw materials will increase and manufactured products relatively cheaper in the domestic market of their host country. Through this way, various economic sectors of their host country could involve and benefit from FDI activity. Also, ordinary citizens could involve through wage employment, self-employment, afford to buy products of better quality and cheaper prices, enjoy functioning infrastructure and as such, improve their standard of living. Besides, FDI can contribute in putting other social infrastructure in place like building or supporting community health centers, building schools and roads to boost their corporate image, by so doing contribute to economic development and poverty reduction. Depending on their activities, if the TNC is involved in agriculture, they could make irrigation their priority, and those communities within their areas of operation will benefit.
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Human Capital Formation and Economic Growth in Pakistan

Human Capital Formation and Economic Growth in Pakistan

The study has made an attempt to provide the empirical confirmation on the relationship between human capital formation and economic growth. The results of this study indicated that there is long run relationship between economic growth, education enrollment, CPI inflation, investment growth, head count ratio and fixed capital formation. Education enrollment index (EEI) has significant and positive impact on economic growth; it means increase in education enrollment stimulates economic growth. Head count ratio (HCR) which is used as a proxy for poverty, has negative relationship with economic growth. It indicates as poverty increases, the process of economic growth will slow down. The Gini coefficient (GINI) and gross domestic fixed capital formation (GFCF) have positive and significant effect on economic growth.
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Human Capital Investment and Economic Growth in Nigeria

Human Capital Investment and Economic Growth in Nigeria

The trend line below shows that REALGDP has been increasing over the years. This can be attributable to the increased revenue gotten from crude oil. Government expenditure has also been increasing over the years but has little impact on growth and development. For instance, the rank of countries (as indicated march 4, 2013 report) showed that Nigeria ranked 153 with a value of 0.471 among 187 countries. This tells of the fact that human capital is not given the optimum preference in Nigeria compared to the Asian tiger: Singapore that ranked 18 with an HDI of 0.895 because she concerted her effort on the educational sector.
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Public External Debt, Capital formation and Economic growth in Ethiopia

Public External Debt, Capital formation and Economic growth in Ethiopia

When we see the Ethiopian case where the economy is characterized by: by low human development index (0.392%), relatively low life expectancy (59 years), low road density (4 km of road per 100 sq km), low telecommunication service (0.97 per 1000 people) and low electric consumption (54 kwh per capita) requires huge investment to overcome those problems. But financing those investments through domestic resource mobilization is impossible because the country’s financial system is underdeveloped and characterized by: low population to financial service coverage, Low percentages of adults which have accesses to formal credit (1.197% in 2006 and has increased to 1.86% in 2011), low number of depositors in commercial banks (was only 65.97 per 1,000 people in 2006 and has increased to 114.76% in 2010, low population-to-branch ratio (one branch for 62,063.6 people). Similarly the taxing system is also underdeveloped and with low tax to GDP ratio (only 9.28%), and low saving to GDP ratio only 15% .Therefore the government did not have any alternative other than borrowing from abroad to finance its huge investments. For this reason the country’s external debts has been increasing from time to time and have its own impact on domestic economy. This study has tried to investigate the effect of public external debt on capital formation and economic growth of Ethiopia using macroeconomic time serious data..
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HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

In spite of the rising public expenditure on education and its positive impact on growth of schools and enrolment, Nigeria is still characterized by low quality of education, unemployable school products and unskilled labour force among other human capital challenges. This raises issues bordering on the extent of development of human capital in the country. Even more puzzling is the fact that despite the discernible low quality of education and high number of unskilled labour force, including the unemployable school products, Nigeria has grown to be the largest economy in Africa and the third fastest growing economy in the world before the fall in the price of oil in the international market in late 2015 (IMF, 2014). Undeniably, the Nigerian economy is oil driven hence, the growth of the Nigerian economy could be attributed solely to huge crude oil earnings. This makes it even more pressing to determine precisely the exact magnitude and direction of contribution of human capital development to economic growth in Nigeria.
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The Effect of Human Capital, Labors, and Capital on Economic Growth in Barlingmascakeb

The Effect of Human Capital, Labors, and Capital on Economic Growth in Barlingmascakeb

The average level of education has no significant influence to economic growth. Coefficient value of the average level of education is (0.001129). Its coefficient indicates the average level of education that an increase in the average level of education 1 years, so economic growth also increases is 0.001129 percent. This condition is in accordance with the tested hypothesis. This is supported by Salsabila (2013) who said that the average level of education does not have a positive impact to economic growth. In contrast, the result of the research by Aminnudin (2013) and Saepudin (2011) mentioned that the average level of education has a positive influence to economic growth. Because the average level of education in Barlingmascakeb is as high as 8.61 percent in the year 2015, then it should have an effect on economic growth.
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Human Capital Formation and Economic Growth in Nigeria

Human Capital Formation and Economic Growth in Nigeria

Education and health are fundamental to economic growth and development and are one of the key determinants of economic performance both at the micro and macro levels. This derives from the fact that education and health are both direct component of human well-being and a form of human capital that increases an individual’s capabilities (Bloom & Canning, 2003). Grossman (1972) has equally demonstrated that education and health are forms of human capital. Schultz (1992) argued that population quality is the decisive factor of production and emphasized the intrinsic worth of investing in education and health. In human capital development, education is essential. Education is concerned with the cultivation of the whole person including intellectual, character and psychomotor development. It is the human resources of any nation, rather than its physical capital and material resources, which ultimately determine the character and pace of its economic and social development. Human capital is an all-embracing concept, that is, it is a continuum, a continuing process from childhood to old age, and a must for any society that wishes to survive under the complex challenges of a dynamic world. he concept of human capital has shifted the focus of economic development theorists to generally agree that the quality of human capital has a significant impact on economic development and growth. This body of thinking is of the opinion that the quality and quantity of labour determine the production by virtue of it being a major factor of production. Moreover, improving the quality of the labour force yields implicit, non-economic outputs related to the generation of ideas and decisions which have a significantly positive impact on investment, innovation and other growth opportunities (Adebiyi, 2006; Roux, 1994).
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