scholarly journals Estimating the Impact of Human Capital Underutilization on the Productivity and Economic Growth in India

2021 ◽  
Author(s):  
Vijaya Kumar M ◽  
Balu B
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
International Labor Organization ◽  
Distributed Lag ◽  
Integration Test ◽  
The Impact ◽  
Adf Test

Abstract This study investigated the effect of human capital underutilization on productivity and economic growth. It has used time-series data accessed from the International Labor Organization (ILO) and World Bank database. This paper estimated the relationship between the underutilization of human capital on productivity and economic growth by applying the econometric tests like Augmented Dickey-Fuller (ADF) Test, Johansen Integration Test, and the Autoregressive Distributed Lag (ARDL) model. The results revealed that in the long run human capital underutilization has a negative relationship on GDP and labor productivity and it does not in the short run. The study recommends that specific policy legislations in the Indian labor markets are required for addressing the problem of human capital underutilization and thereby accelerating the economic growth and productivity for the current and future generations.

scholarly journals Impact of Human Capital Underutilization on Economic Growth: the Case of India

2021 ◽  
Author(s):  
Vijaya Kumar M ◽  
Balu B
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
International Labor Organization ◽  
Distributed Lag ◽  
Long Run ◽  
Integration Test ◽  
Adf Test

Abstract This study investigated the effect of human capital underutilization on the economic growth of India. It has used time-series data accessed from the International Labor Organization (ILO) and World Bank database. This paper estimated the relationship between the underutilization of human capital on economic growth by applying the econometric tests like Augmented Dickey-Fuller (ADF) Test, Johansen Integration Test, and the Autoregressive Distributed Lag (ARDL) model. The results revealed that in the long run human capital underutilization has a negative relationship on GDP and labor productivity and it does not in the short run. The study recommends that specific policy legislations in the Indian labor markets are required for addressing the problem of human capital underutilization and thereby accelerating the economic growth and productivity for the current and future generations.

scholarly journals The Impact Of Human Capital On Nigeria's Economic Growth

2021 ◽  
Vol 17 (15) ◽  
Author(s):  
Yusufu Nigel Bachama ◽  
Aisha Adamu Hassan ◽  
Bello Ibrahim
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Trade Openness ◽  
Health Sector ◽  
Series Data ◽  
Development Indicators ◽  
Distributed Lag ◽  
The Impact

Despite abundant evidence at microeconomic level, the role of human capital in promoting economic growth and development has not been well documented at the macroeconomic level – specifically in developing countries. This paper seeks to examine the role of human capital on economic growth in Nigeria using time series data covering the period from 1970-2019. The data are sourced from Central Bank of Nigeria (CBN) statistical bulletin and World Development Indicators of the World Bank. The data are analyzed using Autoregressive Distributed Lag model (ARDL). The study reveals that expenditure on health and education are found to be positively and significantly related with economic growth both in the short-run and long-run. However, labor negatively impact on economic growth and it was found to be significant. Again, trade openness and inflation are insignificant in explaining economic growth in this paper. Thus, the paper recommends that, Nigerian government should focus on improving the educational and health sector. Meaning that, huge amount of government budgetary allocation should be directed toward educational and health sector. So also, government should create more jobs opportunities (through skills acquisitions/ vocational training) to minimize the unemployment rate in the country.

scholarly journals Domestic Investment and Economic Growth Nexus in Nigeria: A Post Recession View

2019 ◽  
pp. 1-12
Author(s):  
Onochie, Stanley Nwabuisi ◽  
Ozegbe, Azuka Elvis ◽  
Nwani, Stanley Emife
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Unit Root Test ◽  
Analytical Framework ◽  
Series Data ◽  
Domestic Investment ◽  
Distributed Lag ◽  
Integration Test ◽  
The Impact

This study investigates the impact of domestic investment on economic growth in Nigeria, using annual secondary time series data spanning 37 years from 1981 to 2017 extracted from the CBN statistical bulletin. Real GDP was used to proxy economic growth, while the key explanatory variable is domestic investment with other control variables as capital expenditure, oil export earnings, exchange rate and inflation rate. The study embarked on pre-estimation test such as unit root test and the bounds co-integration test which informed our methodological choice of Autoregressive Distributed Lag (ARDL). The short run and long run estimates show that domestic investment has positive but insignificant impact on economic growth in Nigeria. This finding departs from those of previous writers due to the improved analytical framework employed in this study. On the basis of our findings, the study recommends a compulsory individual and national savings to boost the level of domestic investment in the country so as to achieve the much desired economic growth and development.

scholarly journals The impact of agriculture trade and exchange rate on economic growth of Pakistan: an NARDL and asymmetric analysis approach

2020 ◽  
Vol 50 (4) ◽  
Author(s):  
Imad Ali ◽  
Imran Khan ◽  
Hashmat Ali ◽  
Khan Baz ◽  
Qiangqiang Zhang ◽  
...  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Granger Causality ◽  
Time Series Data ◽  
Maximum Level ◽  
Series Data ◽  
Distributed Lag ◽  
Integration Test ◽  
Trade And Exchange ◽  
The Impact

ABSTRACT: This study contributes to the extant literature on the nexus among agriculture export, import exchange rate and economic growth in Pakistan. We used annual time series data for 1980-2017 and employ the Non-linear Autoregressive Distributed Lag (NARDL) model. The NARDL testing results affirms asymmetric co-integration among the variables. The study main results show: (i) Co-integration test for long run the positive shocks in export and import have positive significant while exchange rate has positive effect the economic growth. (ii) Co-integration test for short run the positive shocks in import has positive significant and while Export and exchange rate have negative significant effect on economic growth. The symmetrical results show: (i) Export has unidirectional granger causality (ii) Exchange rate has bidirectional granger causality (iii) Import has not ganger causality with economic growth. In addition, the results demonstrated that causality relationship can help out policy maker to design such policies which are useful to economic growth of Pakistan, which could further promote foreign trade to gain the maximum level of economic growth.

scholarly journals Consequences of Capital formation, Trade Liberalization on the Economic Growth: Pakistan’s Experience

2015 ◽  
Vol 2 (1) ◽  
pp. 1-4
Author(s):  
Nadia Bukhari ◽  
Anjum Iqbal
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Trade Openness ◽  
Capital Formation ◽  
Vital Role ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Auto Regressive ◽  
Adf Test

This study considers the long run relationship between the liberalization of trade, capital formation and the economic growth of Pakistan by using the time series data from 1975-2013. The main aim of this study is to examine that how much liberalization of trade and capital formation affects the economic growth of Pakistan in long run. The approach that has been used for empirical analysis is Auto Regressive Distributed Lag (ARDL) model. Under the ADF test capital formation (CF) is stationary at its first level but the trade openness (TO) and GDP is stationary at its first difference. Moreover, the granger casualty test is evident that there become a casual relationship between the trade openness and GDP. The result of this study shows that both the trade openness and the capital formation determined the economic growth in long run and they both have statistically significant effect on the GDP. Furthermore it has has been depicted from the study that the trade has a vital role to influence the economic growth.

Human Capital Impact on Economic Growth in Nigeria

2021 ◽  
Vol 7 (18) ◽  
pp. 15-22
Author(s):  
Chuwuemeka Ogugua AGBO ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Time Series Data ◽  
Capital Expenditure ◽  
Private Investment ◽  
Series Data ◽  
Tertiary Institutions ◽  
Explanatory Variables ◽  
The Government ◽  
The Impact

This study aims to examine the impact of human capital on economic growth in Nigeria. Despite all effort to improve education condition in Nigeria, there hasn’t been much encouraging improvement. This has caused a large number of the population to move abroad for studies. Most conducive tertiary institutions are owned by private individuals, the government owned universities have been overlooked and recklessly abandoned. In this study OLS multiple regression was adopted to analyze the time series data for the period of 1985-2018 to test if Average Year of Schooling (AVYS), Private Investment in Telecommunication (PIT), Capital Expenditure on Education (CEE), and Recurrent Expenditure on Education (REE) have an impact on growth in Nigeria or not. The data was derived from CBN statistical Bulletin (2018). Result showed that all the four explanatory variables have significant impact on Economic growth. However, it is therefore important for government to increase education budget annually.

FDI and economic growth: empirical evidence from Pakistan

2016 ◽  
Vol 32 (1) ◽  
pp. 63-76 ◽  
Author(s):  
Naqeeb Ur Rehman
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Human Capital ◽  
Time Series Data ◽  
Negative Relationship ◽  
Series Data ◽  
Literacy Rate ◽  
Content Type ◽  
Low Level ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the relationship between FDI and economic growth. Two models have been used to analyse the time series data on Pakistan from 1970 to 2012. This paper contributes to the existing literature by examining the different empirical methods to estimate the relationship between FDI and economic growth. The vector error correction model (VECM) results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Design/methodology/approach – Used time series data (1970-2012) for empirical analysis. Findings – The VECM results suggest that FDI depends on the economic growth but this relationship is not true vice versa. The second model showed that FDI, human capital and exports are important factors of economic growth. However, the negative relationship between interactive variables (FDI and human capital) and economic growth indicates that low level of human capital affect the economic growth of Pakistan. Research limitations/implications – The limitations of this empirical paper are as follows: it would be better to use secondary school enrolment (per cent) to measure human capital instead adult literacy rate. Similarly, the non-availability of R & D data on Pakistan limited the scope of the paper to measure the role of absorptive capacity of domestic and its relationship with FDI. The results of this paper are specifically related to Pakistan and cannot be generalized to other countries. Practical implications – This empirical study implies that Pakistan should improve its economic growth. The robust policies are required to increase the literacy rate of the country. Higher human capital will attract more FDI into the economy and may reduce the unemployment. This would increase the national output of the country and their national income level. Presently, Pakistan is going through war on terror and foreign firms are reluctant to invest. A stable and secure business environment will ultimately inject foreign direct investment into Pakistan. Originality/value – This paper is first time analyse the time series data to explore the relationship between FDI and economic growth. A new approach has been used called VECM.

scholarly journals Impact of human capital on economic growth: A case study of Pakistan

2021 ◽  
Vol 2 (2) ◽  
pp. 64-69
Author(s):  
Raheela Khatoon ◽  
Iqbal Javed ◽  
Muhammad Munawar Hayat
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Infant Mortality ◽  
Human Development ◽  
Human Development Index ◽  
Time Series Data ◽  
Infant Mortality Rate ◽  
Series Data ◽  
Development Index ◽  
The Impact

A country is prosperous if it has efficient development programs. Human capital contains resources like education, health, training, skills etc. For economic progress these qualities are very vital. Basic objective of this research is to explain the impact of human capital on growth and development of economics sector of the Pakistan. Because today in the developing countries, human development and growth has becomes the burning issues. To analyse the association between human capital and economic growth, used GDP as a dependent variable. This study further use Human development index as independent variable. Proxy of human development index consist of education index, health, fertility, infant mortality, life expectancy and sanitation. Our focus will be more on the education. Time series data for the years 1990-2019 were used. ARDL model was used by incorporating the human capital formation with other explanatory variables. The findings shows that the human capital has positive and significant impact on growth and the negative influence on the population and infant mortality rate.

scholarly journals External Debt and Economic Growth of Nigeria: An Empirical Investigation

2018 ◽  
pp. 1-11 ◽  
Author(s):  
S. Sajuyigbe, Ademola ◽  
A. Odetayo, Tajudeen ◽  
Z. Adeyemi, Adewumi
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
External Debt ◽  
Debt Management ◽  
Series Data ◽  
Causality Test ◽  
Secondary Sources ◽  
Augmented Dickey Fuller ◽  
The Impact ◽  
Adf Test

The study investigates the impact of external debt on economic growth in Nigeria for the period 1999-2015. The data for this study was obtained mainly from secondary sources mainly from Central Bank of Nigeria (CBN) Statistical Bulletins and Debt Management Office. Time series data on Gross Domestic Product (GDP) as a proxy for Economic Growth, External Debt Stock (EXDS), External Debt Service Payment (EDSP), and Exchange Rate (EXGR) were used for the analysis. The techniques of Estimation employed in the study include Augmented Dickey Fuller (ADF) test, Johansen Co-integration, Vector Error Correction Mechanism and Granger Causality Test. Results show that external debt has an inverse effect on economic growth in Nigeria. Subsequently, the study recommends that government should empower Debt Management Office to set the mechanism in place, ensure that loans are utilised for purposes they are meant for and prosecute corrupt public officers who siphoned the money.

scholarly journals An Empirical Analysis of Public Borrowing and Economic Growth in Nigeria

2020 ◽  
pp. 243-248
Author(s):  
Ayodele Thomas Duro ◽  
Williams Harley Tega ◽  
Afolabi Taofeek Sola ◽  
Adeyanju David Olanrewaju
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Time Series Data ◽  
External Debt ◽  
Negative Relationship ◽  
Secondary Data ◽  
Debt Management ◽  
Domestic Product ◽  
Series Data ◽  
The Impact

This study seeks to evaluate the impact of public borrowing on economic growth in Nigeria using time series data from 1980 to 2018. Specifically, the study seeks to analyze the effect of domestic debt (proxy by Federal Government Bonds-FGB) and external debt (proxy by International Monetary Fund Loan-IMFL) on Nigerian’s Gross Domestic Product (GDP). To achieve this objective, secondary data was collected from the Central Bank of Nigeria Statistical bulleting and the Debt Management Office of Nigeria. A multiple regression model involving the dependent variable (GDP) and the independent variables (FGB and IMFL) was formulated and subjected to econometric analysis. These variables were adjusted with the Jarque-bera test of normality while the correlation result was used to check the possibility of multi-collinearity among the variables. The t-test was used to answer the research questions and test the formulated hypotheses at the 5percent statistical level. Results from the analysis show that a positive relationship exists between IMF Loan and Nigeria’s gross domestic product, while a negative relationship exists between FG Bonds and Nigeria’s gross domestic product, which violates the Keynesian theory of public debt. The study concludes that both domestic and external debt significantly affect economic growth in Nigeria. Therefore, it was recommended that public borrowing should be efficiently used and contracted solely for economic reasons and not for social or political reasons as this will help to avoid accumulation of debt stock over time.

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