Human Capital Economic Growth

This study empirically examines the nexus between intra-trade and economic growth in thirteen ECOWAS countries. ECOWAS was formed to promote Trade liberalization scheme (ETLS) ECOWAS Common External Tariffs (CET) to eliminate trade barriers, encourage free flow of goods and services, simplify customs procedures and harmonized tariffs on goods imported from non ECOWAS countries. This has not improved the economy of the sub-region. Employing copious sequential econometric tools of descriptive statistics, correlation analysis as well as the causality analysis, the panel unit root, co-integration test and fully modified ordinary least square (FMOLS) method for the period 1990 – 2023. The empirical finding for the correlation analysis revealed a negative relationship between economic growth (GDP per capita growth rate) and intra-regional trade. The correlation between human capital development (HCD) and economic growth is positive. The result between trade openness (TO) and economic growth is positive. The correlation coefficients among the explanatory variables are weak which implies that there is no multi-collinearity among the explanatory variables. For the granger causality test using the pair-wise Dumitrescue- Hurlin tests revealed that there is no causality between economic growth (GDP per capita growth) and intra-regional trade with causality running from either economic growth or intra-regional trade share to each other. However, the test showed that human capital development (HCD) causes economic growth (GDP per capita growth rate) implying that causality runs from human capital development to economic growth in the ECOWAS sub- region. For the panel cointegration tests (the Pedroni, Kao, and Johansen Firsher) revealed that there is a long run relationship among the study variables. Also, for the fully modified ordinary least square (FMOLS) method, the signs of all the estimated coefficients of the explanatory variable in the model conformed to their a priori expectations except intra- regional trade share and credit to the private sector as a share of GDP. The coefficient of intra-regional trade share is negative but insignificant implying that intra-regional trade does not have a significant effect on economic growth (GDP per capita growth rate) in ECOWAS sub-region. The coefficient of human capital development is positive and significant at 5 percent level, implying that it has a significant impact on economic growth in ECOWAS sub-region. The coefficient of trade openness is positive but fails the significant test at the 5 percent level of significant. Against the backdrop of these empirical findings, we recommend amongst other; ECOWAS should intensify efforts to fully implement the ECOWAS Common External Tariff and eliminate policy induced and non tariff barriers such as inconsistent customs procedures, excessive checkpoints, and unofficial fees that hinder the free movement of persons, goods and services to boost intra-regional trade in order to enhance rapid and sustained economic growth within the ECOWAS sub-region.

Health spending is viewed as a wise investment in human capital because it increases labor productivity. Wellness is a substantial productive asset and the heart of economic growth, according to Barro (1996). A vital component of well-being, good health affects morbidity and labor productivity, which boosts economic growth. Immediate household (out-of-pocket) payments, private insurance, charitable contributions, and direct services payments by private enterprises are all considered private health expenditures (Jhingan, 2017). Labor productivity is a measure of the efficiency with which labor is used to produce goods and services. It is often calculated as the ratio of output to input, with output being the value of goods and services produced and input being the amount of labor and other resources used to produce those goods and services. In general, a country's labor productivity is an important indicator of its economic health and competitiveness. In Nigeria, labor productivity has historically been relatively low compared to other countries in the region and around the world. There are a number of factors that contribute to this low productivity, including a lack of investment in education and training, inadequate infrastructure and technology, and low levels of investment in research and development. The quantity of products and services produced in a nation per hour of labor is known as labor productivity. Because it particularly measures the volume of actual gross domestic product manufactured by an hour of labor, there has been an increase in interest in examining the link among economic and health-related growth (through labor productivity), which has been significantly sparked by a Report Of the world bank on health (World Bank, 2023). Health expenditure refers to the financial resources that are dedicated to the provision of health services and the promotion of good health. These resources can come from a variety of sources, including governments, private insurance companies, and individual households. Labour productivity, on the other hand, refers to the amount of output that is produced by a unit of labor within a specific period of time. It is often used as a measure of economic growth and competitiveness, as well as a way to gauge the efficiency of a country's workforce