Revisiting the human capital–economic growth nexus in Africa

Wirajing, Muhamadu Awal Kindzeka; Nchofoung, Tii N.; Etape, Felix Mejame

doi:10.1007/s43546-023-00494-5

Cited by 23 publications

(10 citation statements)

References 66 publications

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“…The J statics of Hansen probability test represents the value of the GMM objective function that validates the instrumentation process when it is greater than 10% (Baum et al, 2003;Nkemgha et al, 2023). The autoregressive function confirms the validity when its first order (AR1) is less than 10% and its second order (AR2) greater than 10% (Baum et al, 2003;Nkemgha et al, 2023;Wirajing, Nchofoung, & Etape, 2023).…”

Section: Estimation Techniquementioning

confidence: 90%

“…The educational sector determines the level of financial development and its adaptation to financial globalisation and stability, which are considered essential in ensuring stable funds for healthcare maintenance (Chireshe & Ocran, 2020). Focusing on human capital for its direct effect on health outcomes, the human capital theory postulates that the expansion of the health sector and individuals' healthcare expenditures improve health performance by reducing mortality rate and the lifetime risk of maternal death (Stewart & Owhoso, 2004;Wirajing, Nchofoung, & Etape, 2023). The African health literature indicates that more investments are still to be made in the human capital sectors of education and health to boost not just individual productivity but also the national income of countries.…”

Section: Theoretical Underpinningsmentioning

confidence: 99%

“…The study adopts the two-step system GMM as an empirical strategy motivated by the following factors documented in contemporary GMM literature (Arellano & Bond, 1991;Roodman, 2009aRoodman, , 2009bWirajing, Nchofoung, & Etape, 2023). Firstly, the number of cross-sections should exceed the number of periods within each cross-section, which is fulfilled since the study is dealing with 54 countries over 21 years (i.e.…”

Section: Estimation Techniquementioning

confidence: 99%

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Financial inclusion and healthcare in Africa: Examining the moderating role of education

Wirajing,

Haruna,

Nchofoung

2023

Review Development Economics

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The 2023 Sustainable Development Goal Report reveals that Africa is still struggling in its pursuit to achieve universal healthcare coverage. However, financial risk protection and human capital development could come to the rescue by facilitating the attainment of quality healthcare services. This study examines the effect of financial inclusion on healthcare in Africa, spanning from 2000 to 2021. Healthcare is proxied by life expectancy at birth, the immunisation rate, and the lifetime risk of maternal death. Financial inclusion is approached through access and usage of financial services. After controlling for the problem of potential endogeneity through the system generalised method of moment (GMM), the findings reveal that financial inclusion enhances healthcare in Africa, signifying that financially included individuals have a higher conditional probability of spending more on improving their health relative to the financially excluded individuals. Moreover, the findings indicate that education and technology diffusion are imperative in the quest for enhancing healthcare in Africa. In addition, after testing for sensitivity analysis by adopting different indicators of healthcare, the results remain consistent throughout the study, confirming the role of financial inclusion in enhancing healthcare in Africa. After computing the marginal effects, the findings depict that education and financial inclusion interact to produce positive synergy effects, signifying that the positive role of financial inclusion and education in enhancing healthcare outweighs the negative conditional effect. The results recommend policymakers establish a framework that promotes financial literacy for the enhancement of healthcare in Africa.

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Section: Estimation Techniquementioning

confidence: 90%

Section: Theoretical Underpinningsmentioning

confidence: 99%

Section: Estimation Techniquementioning

confidence: 99%

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Financial inclusion and healthcare in Africa: Examining the moderating role of education

Wirajing,

Haruna,

Nchofoung

2023

Review Development Economics

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“…As a consequence, the necessary shift in population age structures in SSA countries is still lacking; therefore, postponing the real demographic dividend due likely to poor leadership and questionable governance [38][39][40][41]. Indeed, governance is crucial to create the necessary shift in population age structures [41] and finally to reap DD in SSA countries [42][43][44][45].…”

Section: The Ongoing Debate On the Demographic Dividendmentioning

confidence: 99%

Demographic Dividend in Sub-Saharan Africa – Toward Mitigating Social Inequality? A Critical Analysis of the Enabling Environment

Tsala Dimbuene,

Mabanza Matondo

2024

Sustainable Development

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In spite of young populations, sub-Saharan Africa (SSA) is lagging behind on several development indicators. Yet, previous research introduced the concept of “demographic dividend” to showcase how a country can capitalize on its population age structure to boost its economic growth, which could ultimately mitigate social inequality. To reap the demographic dividend, a country should implement major and drastic policies, including those necessary to shift its population age structure. Indeed, demographic studies showed that change in population age structure is the prerequisite to reap the demographic dividend. The proximal factors mediating its effects built upon the “enabling environment,” including policies in health, education and economics, and governance. Of course, enablers are all important; however, this chapter answers the following question: What should be the gradient among all factors in the enabling environment? The main argument is that governance, referred to as strong leadership and an enlightened vision, is the most important factor in the enabling environment. Without a significant shift in leadership in sub-Saharan Africa, no miracles could be expected and, likely, most SSA countries will not reap demographic dividend.

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“…This has enabled them to outpace Africa in economic development, as Africa heavily relies on commodity exports, which are often negatively impacted by external factors (Nchofoung & Asongu, 2022). Though, the promotion of trade openness in Africa not only stimulates economic growth but also plays a crucial role in facilitating the development of human capital, yielding positive overall outcomes (Wirajing & Nchofoung, 2023).…”

Section: Poor Level Of Education and Skillsmentioning

confidence: 99%

The success of the African Continental Free Trade Area: potentials and constraints

Larguet,

Bouakkaz

2023

jis

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Purpose. This study aims to demonstrate the variables on which African nations depended to realise their desire to create an area of free trade. It also intends to investigate these countries’ constraints in establishing the area, which may stymie their efforts. Results. After thoroughly examining the Free Trade Area’s opportunities and limitations, the study came to the following findings: (1) the African countries’ long-term economic growth and social progress will be made possible by the African Continental Free Trade Area, whose very ambitious goals are based on Agenda 2063’s objectives; (2) African countries and the African Union aim to create a thriving free trade area based on several vital factors. One key factor is the potential to expand the African market, which could reach up to 1.2 billion people, providing abundant opportunities for intra-trade. Many African countries hope to boost neighbouring economies by reducing barriers and improving growth rates. Additionally, the continent's youthful population and wealth of natural resources can facilitate the development of various industries and the availability of diverse products for the continental market; (3) the countries in the continent have been facing long-standing issues that are not new to them. Firstly, trade constraints are seen as non-tariff barriers and high levels of informal trade, making it challenging to establish transparent, free trade zones. In addition, there are weaknesses in intra-regional trade structures and multiple regional agreements. Secondly, there are structural constraints that impede intra-African trade. A lack of manufacturing capabilities is one of these constraints, as most African countries generate income by exporting raw materials without converting them. Furthermore, the youth’s lack of education and skills makes structural transformation in African countries difficult. Furthermore, due to the size of the debt, the vast majority of revenues are directed towards debt repayment rather than investment. Thirdly, because of the social, political, and security constraints that poverty, food insecurity, and political and security instability represent in many African countries, solving these issues for those nations should take precedence over taking part in the free trade area implementation; (4) to sum up, even though there are several necessary components for creating a thriving trade area, they are not enough to overcome the multitude of obstacles and problems that many African nations face. These barriers will hinder the formation of a prosperous free trade zone that includes all African countries, which is essential for achieving overall continental growth that aligns with the region’s goals and Agenda 2063. Scientific novelty. The study explored the potential success of the African Continental Free Trade Area, examining the resources and strengths African countries possess to achieve their goals, as well as the challenges and risks they face. After weighing these factors, the study concluded that achieving the ambitious goals of the free trade zone will be difficult due to the many obstacles it faces. Practical value. The findings of this study hold immense value for African nations aspiring to forge lucrative commercial alliances under the Free Trade Area Agreement. Armed with the insights presented, these nations’ businesses are empowered to select politically and securely steadfast countries, economically and commercially varied nations, and those least burdened by social challenges, particularly poverty and food insecurity.

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Revisiting the human capital–economic growth nexus in Africa

Cited by 23 publications

References 66 publications

Financial inclusion and healthcare in Africa: Examining the moderating role of education

Financial inclusion and healthcare in Africa: Examining the moderating role of education

Demographic Dividend in Sub-Saharan Africa – Toward Mitigating Social Inequality? A Critical Analysis of the Enabling Environment

The success of the African Continental Free Trade Area: potentials and constraints

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