Capital and Labour Productivity: A Comparative Study of Nigeria and South Africa

Olarewaju, Favour O.; Areo, Oluwafadekemi S.; Ogundipe, Adeyemi A.; Ogunbiyi, Toun; Asaleye, Abiola John

doi:10.18488/journal.aefr.2020.1012.1384.1395

Cited by 4 publications

(1 citation statement)

References 16 publications

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“…A comparison was done for Nigeria and South Africa, and it was discovered that both human and physical capital affect labour productivity in both countries, though South African productivity was more responsive to changes in physical capital. For Nigeria, school enrolment had a negative relationship with labour productivity (Olarewaju et al 2020).…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Human Capital Development and Labour Market Outcomes in Africa: Evidence from Sub-Saharan African Countries

2022

JESD

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The abilities and qualities of labour that influence productivity include higher education, on-the-job training and health. Investment in these improves the abilities of the labour force to innovate and adopt new technologies. Thus, policy dimensions towards building human capital make the difference between inclusive growth and jobless economic growth that leaves large segments of the society behind. However, Sub-Saharan African (SSA) countries are bedeviled by poor performance of their labour markets mostly characterized by rising rate of unemployment, low labour productivity, among others. This study examines the effect of human capital development on labour market outcomes in Sub Saharan African countries while capturing labour market outcomes with labour productivity. Given that education, health and life expectancy are integrals of human capital investments and often viewed as factors determining a country's labour force, they are employed within a dynamic panel analysis framework using the Generalized method of Moments for 30 SSA countries from 2000-2019. In most developing countries, particularly SSA, the public sector is often significantly larger than the private sector. Given the role of policymakers in labour market performance, the study introduces government effectiveness as a control variable. Empirical results reveal that government expenditure on health and life expectancy exert significant effect on labour productivity, with government expenditure on health being positive and life expectancy being negative. Similarly, the effect of government expenditure on education is insignificant for labour productivity. Government effectiveness affects labour productivity positively and significantly. The study reiterates the importance of human capital in labour market outcomes while suggesting the need for policies that will ensure adequate investment in human capital.

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Section: Empirical Literature Reviewmentioning

confidence: 99%

Human Capital Development and Labour Market Outcomes in Africa: Evidence from Sub-Saharan African Countries

2022

JESD

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Effect of HIV/AIDS on labour productivity and the moderating role of literacy rate: A panel study of Africa and its sub‐regions

Ogbodo,

Ogbuabor,

Omenazu

et al. 2024

Health Planning & Management

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This study examined the effect of human immunodeficiency virus (HIV)/acquired immunodeficiency syndrome (AIDS) on labour productivity in Africa and its sub‐regions while controlling for the moderating effect of literacy rate. The study used the system Generalised Method of Moment estimation technique and annual panel data from 2010 to 2020 for 53 African economies. Labour productivity and literacy rate were measured by the ratio of gross domestic product to total employment and gross secondary school enrolment respectively. The results indicate that HIV/AIDS retards labour productivity, and that literacy rate can ease this depressing effect of HIV/AIDS in Africa. The sub‐regional differences in Africa obtained in this study revealed that the depressing effect of HIV/AIDS on labour productivity is highest in Southern Africa and lowest in Northern and Central Africa. Interestingly, the study also established that per capita health expenditure, per capita income, gross capital formation, and information and communications technology are important drivers of labour productivity in Africa. The study, therefore, concludes that there is need for governments and other stakeholders to help to increase school enrolment and improve the quality of the content of education curriculum in Africa to increase the awareness of HIV/AIDS, especially as it relates to its channels of transmission like unprofessional blood transfusion, unprotected sexual activity, and genital mutilation, among others.

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Is FDI from China Goodfor Labour Productivity in Sub-Saharan Africa? A Panel Cointegration

Iheonu,

Abia,

Okwoche

et al. 2024

Foreign Trade Review

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China’s political and economic engagement in Africa has increased over the last two decades, resulting in a significant increase in Chinese foreign direct investment (CFDI) into the region. In this study, the link between CFDI and the productivity of labour is investigated in 22 sub-Saharan African countries from 2003 to 2020. The study utilised panel cointegration techniques that are suitable in the absence of cross-sectional dependence and take stationarity and long-run relationships into consideration. The findings from the panel dynamic ordinary least squares (OLS) and the fully modified OLS revealed that CFDI is important for driving labour productivity in the long run. In the short run, however, the study finds no significant influence of CFDI on labour productivity. Further findings reveal that CFDI Granger causes labour productivity. Additionally, the study finds that capital per labour is a necessity for boosting the productivity of labour in the region. The study recommends that African countries strengthen investment promotion agencies that actively facilitate CFDI and also negotiate favourable trade and investment agreements with China that promote technology transfer and skills development. JEL Codes: C23, F21, J24

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Capital and Labour Productivity: A Comparative Study of Nigeria and South Africa

Cited by 4 publications

References 16 publications

Human Capital Development and Labour Market Outcomes in Africa: Evidence from Sub-Saharan African Countries

Human Capital Development and Labour Market Outcomes in Africa: Evidence from Sub-Saharan African Countries

Effect of HIV/AIDS on labour productivity and the moderating role of literacy rate: A panel study of Africa and its sub‐regions

Is FDI from China Goodfor Labour Productivity in Sub-Saharan Africa? A Panel Cointegration

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