Knowledge Capital, Human Capital Stocks and the Growth of Africa Economies: A Panel Data Analysis
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 3
Abstract
This paper seeks to answer the question of how Africa economies can sustain growth. The endogenous growth model developed by Romer (1986) and Lucas (1988) has focused on the role of human capital and by modification, knowledge capital as a main source of increasing returns and divergence in growth rates between developed and underdeveloped countries. Can African countries sustain their economic growth through intensifying human and knowledge capital as productive inputs? The paper provides an empirical test of the endogenous growth model in particular, the “Rival” human capital models of Romer (1990) and non-rival „idea‟ models of Lucas (1988), for Africa economies using a panel of Africa data on human and knowledge capital stocks. The study employed two different Panel Cointegration techniques, the Panel ARDL (PMG) and the Fully Modified OLS on two aggregate production functions (knowledge capital based and human capital based models) The study was able to establish that the poor growth of Africa economies is not a woe but the result of poor and not sustained accumulation and use of human and knowledge capital. Convergence will be observed for African economies if they intensify on subsidies for education, research and development.
Authors and Affiliations
Ayeni R. K. (Phd)
Keywords
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- EP ID EP414855
- DOI 10.9790/5933-0903035363.
- Views 198
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