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Human Capital and Labour Productivity: Empirical Evidence from Developing Countries

Received: 22 June 2022     Accepted: 9 July 2022     Published: 18 July 2022
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Abstract

Human capital is the main driving force of labour productivity. Thus, this study aims to investigate the impact of both education and health as crucial dimensions of human capital on labour productivity in 39 developing countries. To achieve this objective, the study employs a dynamic Generalized Method of Moment (GMM) estimator on panel data from 2000 to 2019. This study utilizes two separate models. The first model focuses on estimating the effect of education on labour productivity. While the second one focuses assessing on the effect of health status on labour productivity and the study examines both models through three separate steps. The findings reveal that education positively and significantly affects labour productivity. Also, the correlation between health status and labour productivity is statistically significant and positive. Additionally, the study shows that physical capital, trade openness, inflation, and the level of advanced technology are meaningful determinants of labour productivity in developing countries. These results are in line with economic theory and many empirical studies. Furthermore, the results show that education has a more significant impact on labour productivity than health. The study suggests that policymakers in developing countries should target primary education as an approach to increase labour productivity and adopt appropriate measures to enhance workers’ health.

Published in International Journal of Economics, Finance and Management Sciences (Volume 10, Issue 4)
DOI 10.11648/j.ijefm.20221004.13
Page(s) 173-184
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2022. Published by Science Publishing Group

Keywords

Labour Productivity, Human Capital, Education, Health, Dynamic GMM Estimator, Developing Countries

References
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Cite This Article
  • APA Style

    Mohamed Fathy Abdelgany, Amira Abdelmoez Saleh. (2022). Human Capital and Labour Productivity: Empirical Evidence from Developing Countries. International Journal of Economics, Finance and Management Sciences, 10(4), 173-184. https://doi.org/10.11648/j.ijefm.20221004.13

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    ACS Style

    Mohamed Fathy Abdelgany; Amira Abdelmoez Saleh. Human Capital and Labour Productivity: Empirical Evidence from Developing Countries. Int. J. Econ. Finance Manag. Sci. 2022, 10(4), 173-184. doi: 10.11648/j.ijefm.20221004.13

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    AMA Style

    Mohamed Fathy Abdelgany, Amira Abdelmoez Saleh. Human Capital and Labour Productivity: Empirical Evidence from Developing Countries. Int J Econ Finance Manag Sci. 2022;10(4):173-184. doi: 10.11648/j.ijefm.20221004.13

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  • @article{10.11648/j.ijefm.20221004.13,
      author = {Mohamed Fathy Abdelgany and Amira Abdelmoez Saleh},
      title = {Human Capital and Labour Productivity: Empirical Evidence from Developing Countries},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {10},
      number = {4},
      pages = {173-184},
      doi = {10.11648/j.ijefm.20221004.13},
      url = {https://doi.org/10.11648/j.ijefm.20221004.13},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20221004.13},
      abstract = {Human capital is the main driving force of labour productivity. Thus, this study aims to investigate the impact of both education and health as crucial dimensions of human capital on labour productivity in 39 developing countries. To achieve this objective, the study employs a dynamic Generalized Method of Moment (GMM) estimator on panel data from 2000 to 2019. This study utilizes two separate models. The first model focuses on estimating the effect of education on labour productivity. While the second one focuses assessing on the effect of health status on labour productivity and the study examines both models through three separate steps. The findings reveal that education positively and significantly affects labour productivity. Also, the correlation between health status and labour productivity is statistically significant and positive. Additionally, the study shows that physical capital, trade openness, inflation, and the level of advanced technology are meaningful determinants of labour productivity in developing countries. These results are in line with economic theory and many empirical studies. Furthermore, the results show that education has a more significant impact on labour productivity than health. The study suggests that policymakers in developing countries should target primary education as an approach to increase labour productivity and adopt appropriate measures to enhance workers’ health.},
     year = {2022}
    }
    

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    T1  - Human Capital and Labour Productivity: Empirical Evidence from Developing Countries
    AU  - Mohamed Fathy Abdelgany
    AU  - Amira Abdelmoez Saleh
    Y1  - 2022/07/18
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    DO  - 10.11648/j.ijefm.20221004.13
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
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    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20221004.13
    AB  - Human capital is the main driving force of labour productivity. Thus, this study aims to investigate the impact of both education and health as crucial dimensions of human capital on labour productivity in 39 developing countries. To achieve this objective, the study employs a dynamic Generalized Method of Moment (GMM) estimator on panel data from 2000 to 2019. This study utilizes two separate models. The first model focuses on estimating the effect of education on labour productivity. While the second one focuses assessing on the effect of health status on labour productivity and the study examines both models through three separate steps. The findings reveal that education positively and significantly affects labour productivity. Also, the correlation between health status and labour productivity is statistically significant and positive. Additionally, the study shows that physical capital, trade openness, inflation, and the level of advanced technology are meaningful determinants of labour productivity in developing countries. These results are in line with economic theory and many empirical studies. Furthermore, the results show that education has a more significant impact on labour productivity than health. The study suggests that policymakers in developing countries should target primary education as an approach to increase labour productivity and adopt appropriate measures to enhance workers’ health.
    VL  - 10
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Author Information
  • Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt

  • Economics Department, Faculty of Politics and Economics, Beni-Suef University, Beni Suef, Egypt

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