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2009•RePEc: Research Papers in EconomicsOpen access

Human capital in Africa: Technical change, efficiency and productivity

Vishal Chandr Jaunky

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Abstract

The aim of this paper is to analyze the importance of human capital on productivity growth for 26 African countries over the period 1976-1996. To estimate productivity change, the Malmquist total factor productivity (TFP) growth index is computed. This index is then decomposed into technical change and efficiency change. In general, human capital is found to exert a positive effect on technical change and productivity change while efficiency change is left unaffected. Additionally, higher technical inefficiency tends to lead to lower the rate of innovation.

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What this paper is about

The aim of this paper is to analyze the importance of human capital on productivity growth for 26 African countries over the period 1976-1996. To estimate productivity change, the Malmquist total factor productivity (TFP) growth index is computed. This index is then decomposed into technical change and efficiency change. In general, human capital is found to exert a positive effect on technical change and productivity change while efficiency change is left unaffected. Additionally, higher technical inefficiency tends to lead to lower the rate of innovation.

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Available abstract

The aim of this paper is to analyze the importance of human capital on productivity growth for 26 African countries over the period 1976-1996. To estimate productivity change, the Malmquist total factor productivity (TFP) growth index is computed. This index is then decomposed into technical change and efficiency change. In general, human capital is found to exert a positive effect on technical change and productivity change while efficiency change is left unaffected. Additionally, higher technical inefficiency tends to lead to lower the rate of innovation.

Key concepts: Total factor productivity, Technical change, Economics, Inefficiency, Human capital, Productivity, Technological change, Index (typography)

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