Abstract

This study investigates the role of institutional quality in human capital development using a panel of 49 African countries over the period 1996–2018. The study employs a dynamic model based on a two-step system generalized method of moments. The results show that improving institutional quality promotes access to primary, secondary, and tertiary education overall and for females. In particular, government effectiveness, control of corruption and political stability, and the absence of violence, including terrorism, are the most important dimensions that foster human capital development. The results suggest that fostering these particular institutional quality dimensions is critical to improving human capital development in Africa.

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