Abstract
This study aims to analyze and to compare the effects of various levels of education on the economic growth of some selected countries in Sub-Saharan Africa (SSA) between 1980 and 2015.It is hypothesized in the study that various levels of education have significant positive impacts on the economic growth of some selected sub-Saharan Africa countries over the stated period. Fixed effect Least Square Dummy Variable (LSDV) and a robust version of System Generalized Methods of Moment (SYSGMM) are adopted as model estimating techniques. Results from the LSDV model indicate increasing positive impacts of various levels of education on the economic growth of the thirty selected SSA countries. This trend of significance is corrected in the dynamic model, but with negative effects on the lower levels of education on growth while higher education output which negatively impacted on growth is reversed. The study systematically compares the effects of education on growth when higher education is included and when it is excluded both at the enrolment and output level in the regression model. We found different results at each instance for the various levels. Therefore, the major conclusion of this study is that higher education human capital at the output level appears to be the most significant of all the levels of education. However, this advantage enjoyed by higher education could have been as a result of cumulative effects from other levels of education over time. We, therefore, conclude that higher education should be supported with strong education policy implementation, as this could have a positive impact on SSA economic growth.
Highlights
Between 1980 and 2000, Sub Saharan African (SSA) countries witnessed low economic growth and low higher education enrolment (Glewwe, Maiga, & Zhend, 2014)
Higher education is the apex in the rung of education and the findings from this study reveal that when only higher education enrolment and output enter into the regression with capital and labor, higher education enrolment and output are found to be statistically significant along with employment rates and capital stock
The result from the SYSTEM generalized method of moments (GMM) analysis shows that higher education could be more important for growth in the SSA countries than investment in physical capital and other levels of education
Summary
Between 1980 and 2000, Sub Saharan African (SSA) countries witnessed low economic growth and low higher education enrolment (Glewwe, Maiga, & Zhend, 2014). There are 46 countries in the region (World Fact book, 2017) This SSA profile potentially should place SSA region at a competitive edge with the world’s advanced economies, evidence from the extant literature has constantly shown a reverse falling trend which calls for an urgent higher education policy intervention among others to boost higher education enrolment. This is with the expectations that it will improve economic growth in the region which in turn will reverse the falling trend in the general economic performance. A country's level of education in term of population in general and higher education achievement in particular steadily reveal and reflect the knowledge, skills, and the level of economic growth and freedom enjoyed by the people (Bloom et al, 2014)
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