Quality of human capital accumulation, higher education graduates and economic growth: A comparative analysis between BRICS, Southeast Asian and MENA countries

Issue title: Higher education and labor markets: Challenges for society

Guest editors: Aleš Trunk and David Dawson

Article type: Research Article

Authors: Khalfaoui, Hamdi^{a; b} | Derbali, Abdelkader^{a; b; *}

Affiliations: [a] Higher Institute of Informatics and Management of Kairouan, Kairouan University, Tunisia | [b] Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia

Correspondence: [*] Corresponding author: Abdelkader Derbali is an Assistant Professor in Finance at the Department of Administrative and Financial Sciences and Techniques, Community College, Taibah University, Saudi Arabia. E-mail: [email protected].

Abstract: BACKGROUND:The question of the accumulation of the quality of human capital and its relationship with growth is very rarely addressed by the literature. OBJECTIVE:This article aims to investigate the impact of quality of human capital accumulation on economic growth for BRICS, Southeast Asian and MENA countries. METHODS:Thus, we utilize endogenous growth model of Lucas [5] that is the most appropriate for the human capital-growth question. We use yearly data for each group employed in this paper during the period of study from 1990 to 2015. RESULTS:The empirical results show that for BRICS and South East Asia countries, the nexus between quality of human capital and economic growth is positive, while for MENA countries the relationship has not been identified. Also, we show that positive link between quality of human capital and economic growth depends on the level of accumulation and effectiveness of higher education graduates and their employment rate in high value-added sectors. CONCLUSION:The relationship among human capital and economic growth does not only depend on the employment rate of university graduates and labor market matching mechanisms, but it also depends on the nature of the job and the efficiency and productivity of human capital.

Keywords: Human capital accumulation, economic growth, higher education graduates, BRICS and Southeast Asia countries, MENA countries, panel data

DOI: 10.3233/HSM-190855

Journal: Human Systems Management, vol. 40, no. 5, pp. 723-735, 2021