Abstract/Description
The extant endogenous theory posits that human capital skill influences industrial output growth. However, evidence from sub-regional blocs in sub-Saharan Africa (SSA) suggests otherwise due to diverse human capital skills and output growth patterns across the subregion. This study intends to unravel patterns of migration and human capital skills across ECA ECCAS ECOWAS SADC sub-regions in SSA. What are the interactive effects of migration and human capital skills on industrial output in SSA? Consequently, this study fills vacuums in the literature via a sub-sample analysis to systematically compare the patterns of migration and human capital skills across the SSA’s sub-regions. The short-run and longrun system Generalized Methods of Moments (sys-GMM) techniques were adopted to investigate the diverse interactive effects of migration and human capital skills on industrial growth in SSA. Notably, the conventional sys-GMM technique was disaggregated into shortrun and long-run to reveal the aggregate effect of migration and human capital skill development on industrial output growth. Therefore, the study systemically disclosed diverse sub-region-specific effects across EAC ECASS ECOWAS, and SADC. Subsequently, the study recommended that countries in SSA should draft more robust sub-regional policy support toward redesigning and improving educational systems across EAC ECASS and ECOWAS blocs. By extension, the government should create a conducive learning and working environment for skilled human capital to expedite modern skill acquisition and moderate brain-drain that can attract industrial output growth. This would eventually promote knowledge-deepening toward a knowledge base economy in SSA to escalate modern human capital skills for improved general growth.
Keywords
Human Capital Skill Development, Migration, Output Growth, System GMM
JEL Codes
J6; J24; L11; O55
Location
MAV 1 room, Adamjee building
Session Theme
Human Development and Inclusion I
Session Type
Parallel Technical Session
Session Chair
Nasir Iqbal, Pakistan Institute of Development Economics
Session Discussant
Khadija Bari, Institute of Business Administration ; Fatima Sadik, Institute of Business Administration
Start Date
9-12-2024 2:30 PM
End Date
9-12-2024 4:30 PM
Recommended Citation
Sunday, K. (2024). Human Capital Skills and Industrial Output Growth in sub-Saharan Africa. An implication for Human Capital Migration: A dynamic system GMM approach. CBER Conference. Retrieved from https://ir.iba.edu.pk/esdcber/2024/program/3
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Human Capital Skills and Industrial Output Growth in sub-Saharan Africa. An implication for Human Capital Migration: A dynamic system GMM approach
MAV 1 room, Adamjee building
The extant endogenous theory posits that human capital skill influences industrial output growth. However, evidence from sub-regional blocs in sub-Saharan Africa (SSA) suggests otherwise due to diverse human capital skills and output growth patterns across the subregion. This study intends to unravel patterns of migration and human capital skills across ECA ECCAS ECOWAS SADC sub-regions in SSA. What are the interactive effects of migration and human capital skills on industrial output in SSA? Consequently, this study fills vacuums in the literature via a sub-sample analysis to systematically compare the patterns of migration and human capital skills across the SSA’s sub-regions. The short-run and longrun system Generalized Methods of Moments (sys-GMM) techniques were adopted to investigate the diverse interactive effects of migration and human capital skills on industrial growth in SSA. Notably, the conventional sys-GMM technique was disaggregated into shortrun and long-run to reveal the aggregate effect of migration and human capital skill development on industrial output growth. Therefore, the study systemically disclosed diverse sub-region-specific effects across EAC ECASS ECOWAS, and SADC. Subsequently, the study recommended that countries in SSA should draft more robust sub-regional policy support toward redesigning and improving educational systems across EAC ECASS and ECOWAS blocs. By extension, the government should create a conducive learning and working environment for skilled human capital to expedite modern skill acquisition and moderate brain-drain that can attract industrial output growth. This would eventually promote knowledge-deepening toward a knowledge base economy in SSA to escalate modern human capital skills for improved general growth.