Table 5.
The effect of human capital on economic development in Africa (System GMM technique)
| (1) | (2) | (3) | |
|---|---|---|---|
| OLS | Driscoll/Kraay | GMM | |
| Variables | GDP | GDP | GDP |
| L.GDP | 0.935*** | ||
| (0.00300) | |||
| Human capital index | 1.106*** | 1.909*** | 0.0503*** |
| (0.0699) | (0.449) | (0.00699) | |
| FDI | – 0.0177*** | 0.00767*** | – 0.00644*** |
| (0.00478) | (0.00265) | (0.000359) | |
| Inflation | – 0.000291 | – 4.71e-05 | 0.00428*** |
| (0.000209) | (7.90e-05) | (0.000235) | |
| Trade | 0.00813*** | – 0.00480*** | 0.00122*** |
| (0.000912) | (0.00127) | (7.67e-05) | |
| Savings | 0.0213*** | 0.0123*** | 0.00204*** |
| (0.00150) | (0.00242) | (4.87e-05) | |
| Internet | 0.0123*** | 0.00309* | – 0.00123*** |
| (0.00181) | (0.00170) | (0.000119) | |
| Constant | 4.128*** | 3.759*** | 0.325*** |
| (0.114) | (0.787) | (0.0202) | |
| Observations | 513 | 513 | 425 |
| R-squared | 0.714 | ||
| r2_adjusted | 0.710 | ||
| Number of groups | 28 | 28 | |
| Wooldridge test | 0.0000*** | ||
| Breusch–Pagan / Cook-Weisberg test | 0.0174* | ||
| Pesaran’s CD test (p val) | 0.0000*** | ||
| Frees statistic | 12.659 | ||
| Critical value (1%) | 0.3169 | ||
| Prop > AR(1) | 0.000422 | ||
| Prop > AR(2) | 0.233 | ||
| Instruments | 29 | ||
| Hansen > Prop | 0.230 |
Standard errors in parentheses
***P < 0.01, **P < 0.05, *P < 0.1