Transcript Higher Education and Economic Growth in Africa

Presented by: Sarah Kopp
February 4, 2009
 Gyimah-Brempong, Kwabena, Oliver Paddison,
and Workie Mitiku. 2006. “Higher Education and
Economic Growth in Africa.” Journal of Development
Studies, 42(3): 509-529.
 How does higher education in Africa impact economic
growth (measured as GDP per capita)?
 Average annual GDP growth rate from 1960-2000 is
0.9%
 Higher education is hypothesized to increase growth
rate because it
 Increases in technical efficiency and knowledge
 Allows for easier adoption of foreign technologies
 Improves health of population
 Acts as a socializing force
 Reduces fertility rates
 ý = αo + α1yo + α2higher + α3secondary + α4primary
+ α5k + α6p + α7civwar + e
 Modified neoclassical production function
 Dependent Variable: growth rate of per capita
income (1990 US dollars)
 Independent Variable: higher education (average
years completed by adult population)
 General Method of Moments Estimator
 Equivilent to 3-stage least squares model
 34 African countries from 1960-2000
 5-year averages, 186 total observations
 World Bank World Development Indicators 2001
 Center for International Development Human Capital
Updated Files
 University of Michigan Correlates of War Project
 Harvard University African Development Project
 Increasing higher education increases economic
growth
 “… higher education human capital may be more
important for economic growth in African countries
than physical capital investment” (p. 522)
 Potential overestimates
 Emigration “brain drain”
 How do African countries encourage educated citizens
to work domestically?
 How should African countries increase the
effectiveness of their investment in education?
 Budget concerns