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The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries

Received: 9 November 2021     Accepted: 14 December 2021     Published: 5 February 2022
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Abstract

Human capital development is a process of enhancing the level of human capital capacity through attaining school and provides incentive-based training. The study helps to analyze the interaction between governance, resource and human capital in the study area. To conduct this study panel data type from 2005-2018 has been used, the data obtained from the World Bank database and the Penn world database and for analysis, both descriptive and system GMM panel data analysis have been used. The main reasons enforce to conduct this study is to checkup whether the resource endowment and governance important for human capital? Results of this study show that except for lag of human capital and voice and accountability other variables like resource endowment, labor participation rate, foreign direct investment, rule of law, and regularity quality are statistically and negatively affected human capital development. Given these results, the researcher recommended as, a responsible bodies in sub-Saharan African countries should be attained on the expansion of FDI that has to be especially concentrated on the manufacturing sector; an institution for good governance first should develop than formulate good governance principles, and finally develop resource merit institution in the favor of human capital development.

Published in International Journal of Finance and Banking Research (Volume 8, Issue 1)
DOI 10.11648/j.ijfbr.20220801.15
Page(s) 33-38
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

Human Capital, Development, Resource Endowment, System GMM Dynamic Panel Model, Sub-Saharan African Countries

References
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[4] Mohammed Shuaibu &, Timothy Oladayo P. OeconomiA Determinants of Human Capital Development in Africa : A Panel Data Analysis. 2016; 7 (4).
[5] Rjoub H, Ifediora CU, Odugbesan JA, Iloka BC, Rita JX, Dantas RM, et al. Implications of governance, natural resources, and security threats on economic development: Evidence from sub-saharan africa. Int J Environ Res Public Health. 2021; 18 (12).
[6] Huang C. North American Journal of Economics and Finance Is corruption bad for economic growth ? Evidence from Asia-Pacific countries. North Am J Econ Financ [Internet]. 2016; 35 (100): 247–56. Available from: http://dx.doi.org/10.1016/j.najef.2015.10.013.
[7] Ogundari K, Awokuse T. Human capital contribution to economic growth in Sub-Saharan Africa: Does health status matter more than education? Econ Anal Policy [Internet]. 2018; 58 (February): 131–40. Available from: https://doi.org/10.1016/j.eap.2018.02.001.
[8] Caucutt EM, Lochner L. Early and late human capital investments, borrowing constraints, and the family. J Polit Econ. 2020; 128 (3): 1065–147.
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[12] Herizal Y, Ridho SLZ, &, Anggraini R. GOVERNMENT EXPENDITURE AND CORRUPTION: AN INDONESIA EXPERIENCE. Public Sect Accounting, Financ Cris Austerity, Birmingham, 1 – 4 Sept 2013. 2013; 1–16.
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[14] Mosquera R. A Blessing or a Curse? The Long-Term Effect of Resource Booms on Human Capital and Living Conditions. SSRN Electron J. 2019; (March).
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    Ferede Mengistie Alemu. (2022). The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries. International Journal of Finance and Banking Research, 8(1), 33-38. https://doi.org/10.11648/j.ijfbr.20220801.15

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    ACS Style

    Ferede Mengistie Alemu. The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries. Int. J. Finance Bank. Res. 2022, 8(1), 33-38. doi: 10.11648/j.ijfbr.20220801.15

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    AMA Style

    Ferede Mengistie Alemu. The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries. Int J Finance Bank Res. 2022;8(1):33-38. doi: 10.11648/j.ijfbr.20220801.15

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  • @article{10.11648/j.ijfbr.20220801.15,
      author = {Ferede Mengistie Alemu},
      title = {The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries},
      journal = {International Journal of Finance and Banking Research},
      volume = {8},
      number = {1},
      pages = {33-38},
      doi = {10.11648/j.ijfbr.20220801.15},
      url = {https://doi.org/10.11648/j.ijfbr.20220801.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20220801.15},
      abstract = {Human capital development is a process of enhancing the level of human capital capacity through attaining school and provides incentive-based training. The study helps to analyze the interaction between governance, resource and human capital in the study area. To conduct this study panel data type from 2005-2018 has been used, the data obtained from the World Bank database and the Penn world database and for analysis, both descriptive and system GMM panel data analysis have been used. The main reasons enforce to conduct this study is to checkup whether the resource endowment and governance important for human capital? Results of this study show that except for lag of human capital and voice and accountability other variables like resource endowment, labor participation rate, foreign direct investment, rule of law, and regularity quality are statistically and negatively affected human capital development. Given these results, the researcher recommended as, a responsible bodies in sub-Saharan African countries should be attained on the expansion of FDI that has to be especially concentrated on the manufacturing sector; an institution for good governance first should develop than formulate good governance principles, and finally develop resource merit institution in the favor of human capital development.},
     year = {2022}
    }
    

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    T1  - The Effect of Resource Endowment and Governance on Human Capital Development of Sub-Saharan African Countries
    AU  - Ferede Mengistie Alemu
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    T2  - International Journal of Finance and Banking Research
    JF  - International Journal of Finance and Banking Research
    JO  - International Journal of Finance and Banking Research
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    UR  - https://doi.org/10.11648/j.ijfbr.20220801.15
    AB  - Human capital development is a process of enhancing the level of human capital capacity through attaining school and provides incentive-based training. The study helps to analyze the interaction between governance, resource and human capital in the study area. To conduct this study panel data type from 2005-2018 has been used, the data obtained from the World Bank database and the Penn world database and for analysis, both descriptive and system GMM panel data analysis have been used. The main reasons enforce to conduct this study is to checkup whether the resource endowment and governance important for human capital? Results of this study show that except for lag of human capital and voice and accountability other variables like resource endowment, labor participation rate, foreign direct investment, rule of law, and regularity quality are statistically and negatively affected human capital development. Given these results, the researcher recommended as, a responsible bodies in sub-Saharan African countries should be attained on the expansion of FDI that has to be especially concentrated on the manufacturing sector; an institution for good governance first should develop than formulate good governance principles, and finally develop resource merit institution in the favor of human capital development.
    VL  - 8
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Author Information
  • Department of Economics, College of Business and Economics, Debre Tabor University, Debre Tabor, Ethiopia

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