Public Health Investment, Human Capital Accumulation, and Labour Productivity: Evidence from West Africa

Abstract

Abstract The study of public health investment, human capital accumulation, and labour productivity are essential in formulating policies that drive economic development. This study examines the individual and interactive effects of public health investment and human capital accumulation and the interactive effect of human capital accumulation and financial opportunity on labour productivity in West Africa from 1992 to 2020, respectively. The interactive effect of human capital accumulation and financial opportunity has not been given any attention in the literature. The following findings are apparent in the study: One, public health Investment and human capital accumulation positively affect labour productivity in the short and long run. Two, the interactive effect of human capital accumulation and public Health Investment positively and significantly affect labour productivity in the short and long run. Lastly, the interactive effect of human capital accumulation and financial opportunity positively and significantly affects labour productivity in the short and long run. Hence, we suggest that economic policy be formulated to ensure that affordable healthcare and financial opportunity are available, together with human capital accumulation, to fast-track the normalization of the economy.