Effect of human capital development and institutional quality on inclusive growth in African countries

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Contributors

Abstract

The study examines the impact of human capital and governance on inclusive growth in Africa. It further explores how governance dynamics influence the relationship between human capital and inclusive growth. Drawing on macro data spanning 43 African countries from 2005 to 2020 and employing the two-step system generalized method of moments (SYS-GMM) estimation technique, the following findings emerge. First, human capital promotes inclusive growth in Africa, while governance has a diminishing effect. Second, the six governance indicators counteracted the positive effect of human capital on inclusive growth. This means that negative governance dynamics completely nullify/dampen the positive effect of human capital on inclusive growth. In conclusion, the anticipated benefits of human capital in fostering inclusive growth may remain elusive unless significant improvements are made to Africa’s weak institutional fabric.

Details

Original languageEnglish
Article number2357155
JournalCogent Economics and Finance
Volume12
Issue number1
Publication statusPublished - 2024
Peer-reviewedYes

Keywords

Sustainable Development Goals

ASJC Scopus subject areas

Keywords

  • Africa, Development Economics, Economic growth, governance, human capital, inclusive growth, Inclusiveness, Macroeconomics, Professor Goodness Aye, University of Agriculture, Makurdi Benue State, Nigeria