EFFECTS OF HUMAN CAPITAL ON ECONOMIC GROWTH IN BENIN

Abstract

The development of human capital is a lever for sustainable economic growth. This study analyzes the importance of human capital in the process of economic growth in Benin. It was carried out on time series from 1990 to 2020. The analysis was based on the Toda Yamamoto causality test, and estimates were made using an autoregressive lag-staggered model (ARDL). The causality test reveals that spending on education causes gross domestic product per capita. The estimates show that education spending has a negative influence on the country's economic growth, while health spending and the gross secondary school enrolment rate have a positive influence in both the short and long term. However, these variables do not have a significant effect on gross domestic product per capita in the long term, while in the short term, it is only health spending that does not have a significant effect on Benin's economic growth.