TITLE:
Effects of Human Capital Expenditures on Non-Oil Sector Growth in the Republic of Congo
AUTHORS:
Christelle Inès Leticia Ndombi Ondze
KEYWORDS:
Public Expenditure on Health, Public Expenditure on Education, Non-Oil Sector Growth, Republic of Congo, ARDL Process
JOURNAL NAME:
Modern Economy,
Vol.12 No.12,
December
6,
2021
ABSTRACT: This paper explores the relationship
between human capital spending and non-oil sector growth in one direction only:
from spending to non-oil sector growth. Using the theoretical framework
developed by Knowles and Owen (1995), this study shows that spending does not
influence non-oil sector growth. This result was obtained by estimating an
Autoregressive Distributed Lag (ARDL) process. The data used were extracted
from the World Bank’s databases and are annual (1996 to 2018). We used several
indicators of development in the world and a governance indicator among those
designed by Kaufmann et al. (2005). From a theoretical point of view, this
result does not support the theory of endogenous growth. On the other hand, it
is an empirical contribution to the literature that exists to date on the
causes of non-oil sector growth in Congo. Moreover, an economic policy
implication has been formulated on the basis of this result.