Table 4.

Human resource development (education), world uncertainty, and structural transformation in Africa

 (1)(2)(3)(4)(5)(6)
Dependent variable: Manufacturing value addedDependent variable: Industrial value added
VariablesFEDKSGMMFEDKSGMM
(−1) Structural Transformation  0.9522** (0.0239)  0.4754** (0.0248)
Human resource development1.8437** (0.8182)1.8437 (0.7365)1.2743** (0.3748)7.7617** (2.6671)7.7617** (2.0180)4.8592** (1.1584)
World uncertainty2.6363** (1.0655)1.1996 (0.1387)0.8265* (0.3792)14.8936** (4.2492)3.0353** (0.2717)4.8610** (1.5255)
World uncertainty* human resource development−0.1809* (0.0902)−0.1809 (0.0677)−0.1160** (0.0360)−0.84610** (0.2722)−0.8461* (0.1833)−0.4349** (0.1144)
Technological innovation−2.4163 (2.4459)−2.4163 (1.5828)−3.0203** (0.7448)7.7310 (5.1951)7.7310 (4.4404)7.8927** (2.5613)
Infrastructure−0.0271 (0.3928)−0.0271 (0.0160)0.0091 (0.0061)−0.0216 (0.1023)−0.0216 (0.3458)−0.0345 (0.0295)
Natural resource rent−0.0177 (0.0223)−0.0177 (0.0180)−0.0188** (0.0047)0.5776** (0.1359)0.5776 (0.338)0.5383** (0.0284)
Constant−14.6437 (9.6754)–−8.1801* (3.9472)−120.8652 (42.7154)–−45.8224** (15.6409)
Net effect of HRD−4427.9852−4427.9852−2839.3015−20711.2999−20711.2999−10644.8511
Avoidable WUI10.191810.191810.98539.17359.173511.1731
Diagnostic checks      
Observations611611–611611611
Number of countries4747–474747
R-squared0.02340.0234–0.37940.3794–
Country effectsYesYes–YesYes–
Year effectsYesYesYesYesYesYes
F-test3.05581.38 6.71229.00–
Prob > F0.00130.000 0.0000.000–
Observations––564––564
Number of countries––47––47
Year effects––yes––yes
Hansen_test––28.78––24.03
Hansen prob––0.151––0.346
Sargan_test––28.27––107.3
Sargan prob––0.167––0
AR(1)_test––−2.958––−1.946
AR(1)_p-value––0.00310––0.0517
AR(2)_test––−1.449––0.709
AR(2)_p-value––0.147––0.478
No. of instruments––39––39
DHT for instruments      
(a) Instruments in levels      
H excluding group––16.70 (0.081)––18.69 (0.044)
Dif(null, H = exogenous)––12.07 (0.440)––5.34 (0.946)
(b) IV (years, eq(diff))–– –– 
H excluding group––23.12 (0.082)––15.75 (0.399)
Dif(null, H = exogenous)––5.66 (0.580)––8.28 (0.309)
Note(s):

Result with education outcome as a measure of human resource development. Standard errors in parentheses ***p < 0.01, **p < 0.05, *p < 0.1

Source(s): Authors’ computation

or Create an Account

Close subscription notice
Close access options