Economic Growth and Human Capital: The Role of Education in an Island Economy

Résumé fourni par la source

Abstract In theory, education improves human capital which plays a crucial role in driving economic growth. As the world’s population ages, the labor force is projected to decrease, posing a potential challenge for economic development. Mauritius as a Small Island Developing State is focusing on structural transformation to enhance competitiveness, achieve growth, and attain high-income status. However, obstacles such as inadequate infrastructure, limited innovation capacity, and a scarcity of human capital hinder these efforts. This study examines the influence of education and human capital on economic growth in Mauritius using an Autoregressive Distributed Lag (ARDL) model with annual data from 1983 to 2019 collected from the World Bank database and Statistics Mauritius. The findings show a long-term relationship between economic growth and its explanatory factors. Employment to population ratio, Education and Gross Capital formation has a statistically significant positive effect but Trade has a negative correlation on Economic growth.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.