The Role of Human Capital Resource in the East African Economic Growth
Worku R. Urgaia
Department of Economics, Addis Ababa University, Ethiopia
Please cite the paper as:
Worku R. Urgaia, (2016), The Role of Human Capital Resource in the East African Economic Growth, World Economics Association (WEA) Conferences, No. 1 2016, Capital Accumulation, Production and Employment:, 15th May to 15th July 2016
This study presents the role of Human Capital Resource in Economic Growth using dynamic panel Transmission Mechanism Channels in Vector Error Correction model and Time Scale Decomposition of the Wavelet analyses. The empirical results indicate the estimated Human Capital Resource has long-run effects on Gross National Income per- capita for a panel of ten East African countries for the period 1980 to 2014. The Short-term Transmission Mechanism Channels using the Wald test indicates that there is significantly important contribution of growth in Human Capital Resource to the development of Physical Capital Stock through Gross National Income per capita. The estimated growth in Gross National Income per capita has also a positive role towards the accumulation of Physical Capital Stock via Human Capital Resource. The Granger Causality test Wavelet Analyses of country by country for a heterogeneous panel data clearly show that the estimated growth of Human Capital Resource is a cause for change in the Gross National Income per capita growth in the short-run, medium and long-run.