Dynamics of Human Capital Development and Quality of Governance on Economic Growth in Sub-Saharan Africa

The study investigates the dynamics of human capital development and quality of Government on economic growth in Sub-Saharan Africa. The Panel VAR result shows The panel impulse response function shows that the one-unit response shocks of exchange rate to real gross domestic product is positive from period one to ten among Sub-Saharan African countries. The one-unit response shocks of government effectiveness to real gross domestic product is positive from period one to eight and die negatively among Sub-Saharan African countries. The one-unit response shocks of per-capita income to real gross domestic product is positive from period one to six and die negatively among Sub-Saharan African countries. The one-unit response shocks of government expenditure on health to real gross domestic product is positive from period one to ten among Sub-Saharan African countries. The one-unit response shocks of government expenditure on education to real gross domestic product is positive from period one to ten among Sub-Saharan African countries. The study recommended that Sub-Saharan African (SSA) countries should Increase budgetary allocation to education, with emphasis on basic, secondary, and technical education that builds productive skills, and encourage public private partnerships in education to complement government funding and improve efficiency.

Development Economics

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