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Effect of Human Capital Development on Economic Growth of Ecowas Member States

Received: 21 December 2018    Accepted: 10 January 2019    Published: 30 March 2019
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Abstract

This study examines the random effect of human capital development on economic growth of ECOWAS member states for the period of thirty seven years from 1980-2016, the measurement of random effect of human capital development on economic growth of ECOWAS member countries encompasses World Development Indicator and human capital index, four human capital variables are used, namely: expenditures on education (EED), expenditures on health (EHE), gross domestic product (GDP) and school enrollment (SCE), these variables were transformed to logarithm of base ten (10) to give more robust estimates,the economic growth was proxied by GDP, which is dependent variable, the empirical evidence is based on the Pedroni residual co-integration approach to test for the long-run relationship among the variables, the findings show that there is positive and significant relationship between GDP and government expenditure on education, expenditure on health and school enrollment in the ECOWAS counties, the study concludes that human capital development has an effect on economic growth in the ECOWAS region,the study is very relevant to the post-2015 Sustainable Development Goals agendas for two fundamental reasons: (a) Exclusive development is a critical policy syndrome in ECOWAS region where human capital development is a key to attain the SDGs extreme poverty target despite enjoying more than two decades of growth resurgence in some member states. (b) Growth in the region can primarily be driven by high human capital with the population of member countries expected to double in about 30 years, high investment on education and health for inclusive development is very welcome. This is essential because studies have shown that the increase in human capital development (resulting from increasing investment in education and health) would be enhances economic growth and development.

DOI 10.11648/j.ash.20190501.14
Published in Advances in Sciences and Humanities (Volume 5, Issue 1, February 2019)
Page(s) 27-42
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Growth, Economic Development, Education, Health, Human Capital, Government Spending, Institutions

References
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  • Department of Economic, Faculty of Social Sciences, Nigeria Defence Academy, Kaduna, Nigeria

  • Department of Economic, Faculty of Social Sciences, Nigeria Defence Academy, Kaduna, Nigeria

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    Fadila Kabir Usman, Olure-Bank Adeyinka. (2019). Effect of Human Capital Development on Economic Growth of Ecowas Member States. Advances in Sciences and Humanities, 5(1), 27-42. https://doi.org/10.11648/j.ash.20190501.14

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    Fadila Kabir Usman; Olure-Bank Adeyinka. Effect of Human Capital Development on Economic Growth of Ecowas Member States. Adv. Sci. Humanit. 2019, 5(1), 27-42. doi: 10.11648/j.ash.20190501.14

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    Fadila Kabir Usman, Olure-Bank Adeyinka. Effect of Human Capital Development on Economic Growth of Ecowas Member States. Adv Sci Humanit. 2019;5(1):27-42. doi: 10.11648/j.ash.20190501.14

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  • @article{10.11648/j.ash.20190501.14,
      author = {Fadila Kabir Usman and Olure-Bank Adeyinka},
      title = {Effect of Human Capital Development on Economic Growth of Ecowas Member States},
      journal = {Advances in Sciences and Humanities},
      volume = {5},
      number = {1},
      pages = {27-42},
      doi = {10.11648/j.ash.20190501.14},
      url = {https://doi.org/10.11648/j.ash.20190501.14},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ash.20190501.14},
      abstract = {This study examines the random effect of human capital development on economic growth of ECOWAS member states for the period of thirty seven years from 1980-2016, the measurement of random effect of human capital development on economic growth of ECOWAS member countries encompasses World Development Indicator and human capital index, four human capital variables are used, namely: expenditures on education (EED), expenditures on health (EHE), gross domestic product (GDP) and school enrollment (SCE), these variables were transformed to logarithm of base ten (10) to give more robust estimates,the economic growth was proxied by GDP, which is dependent variable, the empirical evidence is based on the Pedroni residual co-integration approach to test for the long-run relationship among the variables, the findings show that there is positive and significant relationship between GDP and government expenditure on education, expenditure on health and school enrollment in the ECOWAS counties, the study concludes that human capital development has an effect on economic growth in the ECOWAS region,the study is very relevant to the post-2015 Sustainable Development Goals agendas for two fundamental reasons: (a) Exclusive development is a critical policy syndrome in ECOWAS region where human capital development is a key to attain the SDGs extreme poverty target despite enjoying more than two decades of growth resurgence in some member states. (b) Growth in the region can primarily be driven by high human capital with the population of member countries expected to double in about 30 years, high investment on education and health for inclusive development is very welcome. This is essential because studies have shown that the increase in human capital development (resulting from increasing investment in education and health) would be enhances economic growth and development.},
     year = {2019}
    }
    

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  • TY  - JOUR
    T1  - Effect of Human Capital Development on Economic Growth of Ecowas Member States
    AU  - Fadila Kabir Usman
    AU  - Olure-Bank Adeyinka
    Y1  - 2019/03/30
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    DO  - 10.11648/j.ash.20190501.14
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    JF  - Advances in Sciences and Humanities
    JO  - Advances in Sciences and Humanities
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    PB  - Science Publishing Group
    SN  - 2472-0984
    UR  - https://doi.org/10.11648/j.ash.20190501.14
    AB  - This study examines the random effect of human capital development on economic growth of ECOWAS member states for the period of thirty seven years from 1980-2016, the measurement of random effect of human capital development on economic growth of ECOWAS member countries encompasses World Development Indicator and human capital index, four human capital variables are used, namely: expenditures on education (EED), expenditures on health (EHE), gross domestic product (GDP) and school enrollment (SCE), these variables were transformed to logarithm of base ten (10) to give more robust estimates,the economic growth was proxied by GDP, which is dependent variable, the empirical evidence is based on the Pedroni residual co-integration approach to test for the long-run relationship among the variables, the findings show that there is positive and significant relationship between GDP and government expenditure on education, expenditure on health and school enrollment in the ECOWAS counties, the study concludes that human capital development has an effect on economic growth in the ECOWAS region,the study is very relevant to the post-2015 Sustainable Development Goals agendas for two fundamental reasons: (a) Exclusive development is a critical policy syndrome in ECOWAS region where human capital development is a key to attain the SDGs extreme poverty target despite enjoying more than two decades of growth resurgence in some member states. (b) Growth in the region can primarily be driven by high human capital with the population of member countries expected to double in about 30 years, high investment on education and health for inclusive development is very welcome. This is essential because studies have shown that the increase in human capital development (resulting from increasing investment in education and health) would be enhances economic growth and development.
    VL  - 5
    IS  - 1
    ER  - 

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