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

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Dec 9th, 2:30 PM Dec 9th, 4:30 PM

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.