Education, human capital development and endogeneous growth in selected African countries

Abstract

The study examined the effect of education and human capital development on endogenous growth drawing evidence from selected African Countries within the period of 1980-2020. Survey research design was used and secondary data was sourced from world bank statistical bulletin based on tertiary education enrolment rate (TEER) vocational education enrolment rate (VEER), labour force participation rate (LFPR) and endogenous growth (EG). Descriptive analysis using panel covariance, cross-sectional dependence (CD) test, panel unit root tests as well as panel co-integration test were adopted to test the secondary data extracted. It was observed that there is low positive but significant impact of tertiary education enrolment rate (TEER) and vocational education enrolment rate (VEER), on endogenous growth (EG) while the impact of labour force participation rate (LFPR) on endogenous growth (EG) was negative. The study recommends that government should increase not just the amount of expenditure on education and health sector but also the percentage of its total expenditure accorded these sectors. The ten percent benchmark proffered by the current national plan document as contained in National Economic Empowerment and Development Strategy (NEEDS) should be geared up and gravitate towards the UNESCO 26% international recommended standard. Keywords: Education, endogenous growth, human capital development, trade openness.