Human resource development (education), world uncertainty, and structural transformation in Africa
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Dependent variable: Manufacturing value added | Dependent variable: Industrial value added | |||||
| Variables | FE | DK | SGMM | FE | DK | SGMM |
| (−1) Structural Transformation | 0.9522** (0.0239) | 0.4754** (0.0248) | ||||
| Human resource development | 1.8437** (0.8182) | 1.8437 (0.7365) | 1.2743** (0.3748) | 7.7617** (2.6671) | 7.7617** (2.0180) | 4.8592** (1.1584) |
| World uncertainty | 2.6363** (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 WUI | 10.1918 | 10.1918 | 10.9853 | 9.1735 | 9.1735 | 11.1731 |
| Diagnostic checks | ||||||
| Observations | 611 | 611 | – | 611 | 611 | 611 |
| Number of countries | 47 | 47 | – | 47 | 47 | 47 |
| R-squared | 0.0234 | 0.0234 | – | 0.3794 | 0.3794 | – |
| Country effects | Yes | Yes | – | Yes | Yes | – |
| Year effects | Yes | Yes | Yes | Yes | Yes | Yes |
| F-test | 3.05 | 581.38 | 6.71 | 229.00 | – | |
| Prob > F | 0.0013 | 0.000 | 0.000 | 0.000 | – | |
| 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) |
| (1) | (2) | (3) | (4) | (5) | (6) | |
|---|---|---|---|---|---|---|
| Dependent variable: Manufacturing value added | Dependent variable: Industrial value added | |||||
| Variables | ||||||
| (−1) Structural Transformation | 0.9522** (0.0239) | 0.4754** (0.0248) | ||||
| Human resource development | 1.8437** (0.8182) | 1.8437 (0.7365) | 1.2743** (0.3748) | 7.7617** (2.6671) | 7.7617** (2.0180) | 4.8592** (1.1584) |
| World uncertainty | 2.6363** (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 | ||||||
| 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 | −4427.9852 | −4427.9852 | −2839.3015 | −20711.2999 | −20711.2999 | −10644.8511 |
| Avoidable | ||||||
| Observations | 611 | 611 | – | 611 | 611 | 611 |
| Number of countries | 47 | 47 | – | 47 | 47 | 47 |
| R-squared | 0.0234 | 0.0234 | – | 0.3794 | 0.3794 | – |
| Country effects | Yes | Yes | – | Yes | Yes | – |
| Year effects | Yes | Yes | Yes | Yes | Yes | Yes |
| F-test | 3.05 | 581.38 | 6.71 | 229.00 | – | |
| Prob > F | 0.0013 | 0.000 | 0.000 | 0.000 | – | |
| 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)_ | – | – | 0.00310 | – | – | 0.0517 |
| AR(2)_test | – | – | −1.449 | – | – | 0.709 |
| AR(2)_ | – | – | 0.147 | – | – | 0.478 |
| No. of instruments | – | – | 39 | – | – | 39 |
| (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) | – | – | – | – | ||
| H excluding group | – | – | 23.12 (0.082) | – | – | 15.75 (0.399) |
| Dif(null, H = exogenous) | – | – | 5.66 (0.580) | – | – | 8.28 (0.309) |
Result with education outcome as a measure of human resource development. Standard errors in parentheses ***p < 0.01, **p < 0.05, *p < 0.1
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