Revisiting the human capital–economic growth nexus in Africa

Abstract

This study examines the impact of human capital on economic growth in 48 African countries from 2000 to 2019. The methodological approach involves the system GMM technique to address the problem of potential sources of endogeneity. The findings reveal that economic growth in Africa is positively influenced by human capital development. The findings also indicate that both the male and the female genders for human capital development are important for the economic growth of African countries. Similarly, internet penetration and foreign direct investments interact with human capital to produce positive net effects on economic growth. The study recommends policymakers attribute more resources to the education and health sectors to enhance human capital development as a prerequisite to ensure a stable economic growth.