Human Capital, Technology, and Economic Growth

Sulaiman, Chindo; Bala, Umar; Tijani, Bulama Abiso; Waziri, Salisu Ibrahim; Maji, Ibrahim Kabiru

doi:10.1177/2158244015615166

Cited by 40 publications

(31 citation statements)

References 29 publications

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“…promotes growth in several ways. It increases capital formulation and expands markets through an increase in investment [4,5]. It creates enormous benefits to the country's industrial sectors through developing new methods of production and increases the level of employment by creating more job opportunities, and may lead to poverty reduction [6].…”

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confidence: 99%

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

et al. 2020

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The aim of this study is to analyze the impact of trade openness and human capital on economic growth in 19 Asian countries from 1985 to 2017. We selected two geographically distributed regions (Western and Southern Asia) based on difference in their GDP per capita. We applied the unit root tests to examine the level of stationarity and found that all variables were integrated at first difference. Kao and Fisher cointegration tests were employed and the results revealed the presence of a long-run relationship. We applied fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) models to check the magnitude of the long-run coefficients among trade openness, human capital and economic growth. To investigate the direction of causality, we used a Dumitrescu and Hurlin (DH) causality test. The results indicated that trade openness and human capital have a significant and positive relationship while labor force participation has a negative effect on economic growth in Southern Asia, and in the case of Western Asia, the impact is positive. Foreign direct investment (FDI) has a negative and significant impact on GDP per capita (GDPPC) in Western Asia while it is positive and significant in Southern Asia; Total population (TPOP) has a negative impact on GDPPC in both regions. Furthermore, human capital has a positive and significant impact on trade openness in both panels. Meanwhile, labor force participation (LFP) has a positive and significant impact on trade openness in Southern Asia and a negative impact in the case of Western Asia. Trade openness and economic growth have bidirectional causality in Western Asia and unidirectional causality in Southern Asia. It also shows that human capital and economic growth have unidirectional causality in both regions. promotes growth in several ways. It increases capital formulation and expands markets through an increase in investment [4,5]. It creates enormous benefits to the country's industrial sectors through developing new methods of production and increases the level of employment by creating more job opportunities, and may lead to poverty reduction [6]. There are three tools to measure the ratio of trade openness: one of them is the ratio of total trade volume (import and export) to GDP [7]; the second is the ratio of import and export to total population [8], and finally it can be calculated on the basis of tariff rates. In the current economic scenario, no country can develop successfully without trade openness, investment, and the migration of people. Published literature explored the positive impact of labor productivity on trade openness [9,10]. Trade openness and FDI bring technological transformation in an economy and also help to enhance the human capital of that particular economy [11].Human capital is also observed as a fundamental source of economic growth [12]. It enhances the total productivity level and potential earnings of the labor force [13]. Human capital is also estimated by skills, qualification, ability to create new produ...

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Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

et al. 2020

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“…In Equation (2), panel ARDL with various variables can include various lags, which are inapplicable using the standard cointegration test. Moreover, using panel ARDL, both long-term and short-term coefficients are provided at once [37,38]. Eventually, the ARDL approach could be applied with restricted sample data where the group of primary estimations were improved by [39].…”

Section: Methodsmentioning

confidence: 99%

Financial Development and Bioenergy Consumption in the EU28 Region: Evidence from Panel Auto-Regressive Distributed Lag Bound Approach

Alsaleh

Abdul‐Rahim

2019

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This paper investigates the relationship between financial development and bio-energy consumption in the European Union (EU28) countries for the period from 1990 to 2013 through the panel autoregressive distributed lag (ARDL) approach and causality analysis. The empirical results show that financial development shows a significant positive impact, at a 1% statistical level, on bio-energy consumption for the EU28 during the studied period. In developing countries, the financial market indicator affects bio-energy consumption outgrowth positively and significantly at a 1% statistical level. For developed countries, there is a positive influence of financial institutions and financial market indicators on bio-energy consumption growth at the 1% and 10% levels, respectively. The study concludes that there is a significant relationship between the consumption of bio-energy and financial development factors. The study provides recommendations that are useful when formulating policy related to energy consumption and the promotion of bio-energy consumption. Financial development and economic outgrowth show a significant influence on the outgrowth of bio-energy consumption at a 1% statistical level. releases and does not pertain to access and supply of green energy. The approach handles the result of trouble but does not deal with the source of the problem. The plan to decrease consumption of conventional energy and to switch to renewable green energy fixes the cause of troubles and leads to reductions in CO 2 emissions.According to the AEBIOM (European Biomass Association) analyses in 2010, there are various obstacles to overcome in future bio-energy development related to regulations, legislation, and lobbying from energy companies. In 2010, AEBIOM highlighted multiple problems. One is converting the 300 Mtoe (million tonnes of oil equivalent) that the EU consumes to bio-energy by 2030. There is also concern about the disparity in access to renewable energy within the EU and how to effectively manage large-scale production. New financial development programs for the implementation of renewable energy allocated $11.5 billion to co-fund public projects that aim to amend the energy practices in housing and tertiary sectors from traditional energy to bio-energy [4].Bio-energy outputs could be one of the leading solutions to avoid the European carbon emission tax and energy poverty [5]. Around 40% of the energy in the EU is consumed residentially or by the service industry, primarily in heating and cooling applications. Currently, about 90% of this heat consumption is sourced through conventional energy. Later, once the output cost of traditional energy products increases, this can lead to issues of energy shortages. There will no doubt be a lengthy period until the switch from fossil fuels to renewable energy is fully made [6]. The primary issue for the quick development of bio-energy products is the shortage of capital input and the lengthy payback period. This issue is further impacted by the inefficient use of EU funds u...

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“… Pelinescu (2015) found human capital has a dual positive impact on economic growth in terms of expansion of ideas as well as improvement in the quality of employees underpinned by education. Sulaiman et al. (2015) explained the Nigerian growth regime using the ARDL bounds method and opined technology and human capital are important variables to mould growth.…”

Section: Literature Reviewmentioning

confidence: 99%

An endogenous growth approach on the role of energy, human capital, finance and technology in explaining manufacturing value-added: A multi-country analysis

Arjun

Sankaran

Kumar

et al. 2020

Heliyon

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The multi-dimensional benefits offered by the manufacturing sector in economic growth and development make academicians and policymakers to consider this sector still as an engine of growth . The unique qualities of this sector occupy a predominant place in the development policies around the world. Against these insights gained from economic literature, the study empirically investigates the role of energy, human capital, finance and technology in influencing manufacturing value-added in an endogenous growth framework by assessing short-run and long-run relation through ARDL bounds test approach followed by VECM causality test. The results testify the existence of energy-led, finance-led (supply leading), technology-led, and human capital-led growth hypotheses . These results give important insights and directions to have long term well-framed policy perspectives to develop financial institutions, the uninterrupted energy flow to the manufacturing sector, a blend of education and skill intensive programs and, an import strategy specially designed to obtain the spillover benefit of foreign technology.

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Human Capital, Technology, and Economic Growth

Cited by 40 publications

References 29 publications

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

Impact of Trade Openness and Human Capital on Economic Growth: A Comparative Investigation of Asian Countries

Financial Development and Bioenergy Consumption in the EU28 Region: Evidence from Panel Auto-Regressive Distributed Lag Bound Approach

An endogenous growth approach on the role of energy, human capital, finance and technology in explaining manufacturing value-added: A multi-country analysis

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