The impact of human capital and defense expenditures on economic growth: Panel analysis for selected SSA countries.

Year 2021, Volume: 5 Issue: 1, 14 - 26, 07.04.2021

Adamu Braimah Abille , Wilkista Lore Obıero

Abstract

The purpose of this study is to investigate the existence of heterogeneity in the effect of human capital and defense expenditures on the economic growth of sub-Saharan African countries based on evidence from eight of these countries for the period 2014-2017. The panel fixed effect and the Least Square Dummy Variable (LSDV) version of the fixed effect models are employed. The findings reveal that, while education and defense expenditures have a positive and statistically significant impact on the economic growth of the various countries, the effect of health expenditure on economic growth is positive and insignificant. Further, some significant level of heterogeneity is found in the manner human capital and defense expenditures impact economic growth in the various countries, and this is attributed to varying weights the different countries place on the need for their human capital development. Appropriate policy recommendations are made based on these findings.

Keywords

Economic growth, Human capital expenditure, Panel analysis, SSA

Supporting Institution

This research is not an institution supported work.

The Impact of Human Capital and Defense Expenditures on Economic Growth: Panel Analysis for Selected SSA Countries

Abstract

Bu çalışmanın amacı, beşeri sermaye ve savunma harcamalarının Sahra altı Afrika ülkelerinin ekonomik büyümesi üzerindeki etkisindeki heterojenliğin varlığını, 2014-2017 dönemi için bu ülkelerden sekizinin kanıtlarına dayanarak araştırmaktadır. Panel sabit efekt ve en küçük kare Kukla değişkeni (LSDV) versiyonu olan sabit efekt kullanılmaktadır. Bulgular, eğitim ve savunma harcamalarının çeşitli ülkelerin ekonomik büyümesi üzerinde olumlu ve istatistiksel olarak anlamlı bir etkiye sahip olmasına rağmen, sağlık harcamalarının ekonomik büyüme üzerindeki etkisinin olumlu ve önemsiz olduğunu göstermektedir. Buna ek olarak, insan sermayesi ve savunma harcamalarının çeşitli ülkelerdeki ekonomik büyümeyi nasıl etkilediği konusunda önemli bir heterojenlik seviyesi vardır ve bu, farklı ülkelerin insan sermayesini geliştirme ihtiyacına farklı ağırlıklar koymasından kaynaklanmaktadır. Bu bulgulara dayanarak uygun politika önerileri yapılmaktadır.

Keywords

Beşeri sermaye harcamaları, Ekonomik büyüme, Panel analiz, SSA

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