Employment, human capital, and economic complexity as drivers of sustainable growth: A gender-specific analysis

Abstract

Achieving sustainable economic growth remains a key priority for developing economies aiming to overcome structural inequalities. While prior research has examined employment, human capital, and economic complexity as determinants of economic performance, limited attention has been given to their effects on sustainable growth through a gender perspective. This study fills this gap by analysing how the labour market, skills formation, and economic complexity influence sustainable economic growth from a gender-specific perspective. To capture long-run relationships, interaction dynamics, and causal linkages, the study applies Fully Modified Ordinary Least Squares, Dynamic Ordinary Least Squares, Canonical Cointegrating Regression, and a Vector Error Correction Model. The results reveal that employment and human capital exert significant long-term positive effects on sustainable growth, with stronger impacts observed within male-specific estimations. Moreover, the interaction between employment, human capital, and economic complexity augments their overall contribution to growth. Causality analyses further demonstrate bidirectional short- and long-run relationships among the key variables, indicating their interconnected role in structural transformation. These findings stress the importance of gender-responsive human capital development, equitable labour market integration, and strategies that promote economic complexity. Inclusive and skill-intensive growth pathways can strengthen South Africa's progress toward long-term, sustainable, and gender-equitable economic development.