Abstract
This paper examines the impact of the technology frontier on the Total Factor Productivity (TFP) growth in African countries. The paper includes the human capital channel (i.e., low and high education) in the TFP growth function. The model also adds net foreign direct investment inflows and financial development as control variables. The long-run estimations indicate that the technology frontier hampers the TFP growth. The technology frontier adversely affects the TFP growth in a low education channel. Surprisingly, high education has a positive and insignificant impact on TFP growth. It is also found that financial development decreases the TFP growth while net foreign direct investment inflows have mixed effects. These findings suggest that educated labour embodied in rich technology frontier should also require the proper training for enhancing the TFP growth in African economies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
