Early human capital: the driving force to economic growth in island economies

Abstract

PurposeThe paper investigates into the human capital–economic growth nexus by arguing that investment in early education and health helps in achieving higher economic growth. Early investment in human capital matters most for economic growth than the increase in human capital over the years.Design/methodology/approachA dynamic vector error correction model (VECM) together with the impulse response function and variance decomposition are used on data for Mauritius from 1983 to 2019. The paper distinguishes between the short-run and the long-run effects of human capital measured by the pupil–teacher ratio in pre-primary education and life expectancy at birth.FindingsThis study’s findings reveal that investment in early education and health has contributed positively to growth performance. There is evidence for long-run growth effects arising from a positive shock in the education and health indicators.Originality/valueThis paper contributes to both the theoretical and empirical literature on the human capital–growth nexus. Mauritius as a natural resource poor small economy is an important case study as it has started early in investing in its people to promote economic growth.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2021-0674.

Evaluating the Relationship Between Education Spending and Economic Growth in Egypt: An ARDL Model Analysis

“…This may be due to the increase in government spending on secondary education and the increasing interest in it because it qualifies for university admission, and then its impact appears in the labor market. These results are consistent with eco-nomic theory and consistent with empirical studies by [1,13,15,[52][53][54] on Africa.…”

“…The study utilized GDP per capita, labor factor (unemployment as a percentage of total labor force), physical capital (GFCF), the pupil-teacher ratio in pre-primary education, and life expectancy at birth as variables to measure this effect. The study demonstrated that public investment in early childhood education and health improves educational and health outcomes and promotes economic growth [31].…”

Business Conditions in OECD Countries (2010-2019): A Longitudinal Analysis Applying Machine Learning

“…A historical https://doi.org/10.56294/sctconf2023515 alignment with the political interests of the public sector was identified as a necessary and sufficient condition for growth through diversification. Furthermore, Ben Jabeur et al, (2021) (53) delved into the impact of institutional and macroeconomic conditions on aggregate corporate failure in a sample of European countries from 2004 to 2017. Their comparative analysis involving fuzzy sets and partial least squares regression revealed that countries with low corruption indices and high levels of government effectiveness could mitigate insolvency.…”

Dampak Health Capital Terhadap Pertumbuhan Ekonomi: Pembuktian Dari Negara Terpilih Di Asia Tenggara Dengan Pendekatan Model Autoregressive Distributed Lag (Ardl)

“…Ketika negaranegara beralih menuju ekonomi yang berbasis pengetahuan, maka keberadaan sumber daya manusia yang sangat terampil menjadi semakin penting (Rosendo Silva et al, 2018). Sudah banyak penelitian yang menyoroti Human Capital sebagai penentu utama pertumbuhan ekonomi (Ali et al, 2021;Anetor, 2020;Apergis et al, 2022;Duan et al, 2022;Ibrahim, 2018;Neeliah & Seetanah, 2016;Sehrawat & Giri, 2017;Tahir et al, 2020;Tandrayen Ragoobur & Narsoo, 2022). Namun pada kondisi saat ini peran dari health capital secara intens menjadi fokus penelitian dari akademisi (Isreal Akingba et al, 2018).…”

“…yang berasumsi bahwa akumulasi modal akan selalu memicu pertumbuhan ekonomi, yang akan memicu peningkatan produksi barang dan jasa. Hasil penelitian ini memperkuat penelitian sebelumnya(Addi & Abubakar, 2022;Amidu et al, 2016;Sarwar et al, 2021;Tandrayen Ragoobur & Narsoo, 2022;Thaddeus et al, 2021) yang menyatakan bahwa investasi dalam bentuk gross fixed capital formation berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi. model FMOLS, DOLS dan CCR menunjukkan hasil variabel health expenditure per capita mempunyai pengaruh yang positif dan signifikan terhadap GDP per capita hasil ini konsisten dengan perhitungan menggunakan model ARDL.…”