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The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries

Received: 24 November 2021     Accepted: 25 January 2022     Published: 9 February 2022
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Abstract

Economic Growth rate in Sub Saharan Africa has been unimpressive as compared to other developing regions like East Asian. This unstable economic growth exists in Africa compel from deprived political institution and unskilled human capital. To conduct this study panel data from 2005-2017 with Arellano-Bond dynamic panel data two step estimation technique has been used. The study attempted to answer the research questions such as examining the effect of political institution indicators and human capital indicators on economic growth of Sub- Saharan African countries. Results convey that the variables like foreign direct investment, gross fixed capital formation, GDP and per capital, secondary school attainment, political stability &absence of violence and voice & accountability are statistically significant and positively affiliated with GDP growth rate in Sub-Saharan African countries. The result concludes that, human capital and good governance have a positive effect on economic growth. Given the results, governments of Sub-Saharan African countries ought to be;-formulate sound institutions that enable to increase the extent of stability via dispelling violence, anarchy, and related problems which abolished human’s life; should promote degree of respecting the right of a country' citizens to participate in voice of their government, freedom of expression, freedom of association, and a free media, and finally formulating strategies that enable to increase the education level of peoples.

Published in Journal of World Economic Research (Volume 11, Issue 1)
DOI 10.11648/j.jwer.20221101.12
Page(s) 11-18
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

Economic Growth, Human Capital, Political Institution, Arellano-Bond Dynamic Panel Model, Sub-Saharan African Countries

References
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    Ferede Mengistie Alemeu. (2022). The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries. Journal of World Economic Research, 11(1), 11-18. https://doi.org/10.11648/j.jwer.20221101.12

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    ACS Style

    Ferede Mengistie Alemeu. The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries. J. World Econ. Res. 2022, 11(1), 11-18. doi: 10.11648/j.jwer.20221101.12

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    AMA Style

    Ferede Mengistie Alemeu. The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries. J World Econ Res. 2022;11(1):11-18. doi: 10.11648/j.jwer.20221101.12

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  • @article{10.11648/j.jwer.20221101.12,
      author = {Ferede Mengistie Alemeu},
      title = {The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries},
      journal = {Journal of World Economic Research},
      volume = {11},
      number = {1},
      pages = {11-18},
      doi = {10.11648/j.jwer.20221101.12},
      url = {https://doi.org/10.11648/j.jwer.20221101.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20221101.12},
      abstract = {Economic Growth rate in Sub Saharan Africa has been unimpressive as compared to other developing regions like East Asian. This unstable economic growth exists in Africa compel from deprived political institution and unskilled human capital. To conduct this study panel data from 2005-2017 with Arellano-Bond dynamic panel data two step estimation technique has been used. The study attempted to answer the research questions such as examining the effect of political institution indicators and human capital indicators on economic growth of Sub- Saharan African countries. Results convey that the variables like foreign direct investment, gross fixed capital formation, GDP and per capital, secondary school attainment, political stability &absence of violence and voice & accountability are statistically significant and positively affiliated with GDP growth rate in Sub-Saharan African countries. The result concludes that, human capital and good governance have a positive effect on economic growth. Given the results, governments of Sub-Saharan African countries ought to be;-formulate sound institutions that enable to increase the extent of stability via dispelling violence, anarchy, and related problems which abolished human’s life; should promote degree of respecting the right of a country' citizens to participate in voice of their government, freedom of expression, freedom of association, and a free media, and finally formulating strategies that enable to increase the education level of peoples.},
     year = {2022}
    }
    

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    T1  - The Effect of Political Institution and Human Capital on Economic Growth of Sub Saharan African Countries
    AU  - Ferede Mengistie Alemeu
    Y1  - 2022/02/09
    PY  - 2022
    N1  - https://doi.org/10.11648/j.jwer.20221101.12
    DO  - 10.11648/j.jwer.20221101.12
    T2  - Journal of World Economic Research
    JF  - Journal of World Economic Research
    JO  - Journal of World Economic Research
    SP  - 11
    EP  - 18
    PB  - Science Publishing Group
    SN  - 2328-7748
    UR  - https://doi.org/10.11648/j.jwer.20221101.12
    AB  - Economic Growth rate in Sub Saharan Africa has been unimpressive as compared to other developing regions like East Asian. This unstable economic growth exists in Africa compel from deprived political institution and unskilled human capital. To conduct this study panel data from 2005-2017 with Arellano-Bond dynamic panel data two step estimation technique has been used. The study attempted to answer the research questions such as examining the effect of political institution indicators and human capital indicators on economic growth of Sub- Saharan African countries. Results convey that the variables like foreign direct investment, gross fixed capital formation, GDP and per capital, secondary school attainment, political stability &absence of violence and voice & accountability are statistically significant and positively affiliated with GDP growth rate in Sub-Saharan African countries. The result concludes that, human capital and good governance have a positive effect on economic growth. Given the results, governments of Sub-Saharan African countries ought to be;-formulate sound institutions that enable to increase the extent of stability via dispelling violence, anarchy, and related problems which abolished human’s life; should promote degree of respecting the right of a country' citizens to participate in voice of their government, freedom of expression, freedom of association, and a free media, and finally formulating strategies that enable to increase the education level of peoples.
    VL  - 11
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Author Information
  • Department of Economics, College of Business and Economics, Debre Tabor University, Debre Tabor, Ethiopia

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