Post-Secondary Schooling Quality and Manufacturing Capacity in Africa

33 Pages Posted: 18 Dec 2014

Date Written: December 17, 2014

Abstract

Quality investment in post-secondary schooling could facilitate structural transformation of African economies presently dominated by small-scale agricultural activities. To probe the causal relationship between human capital quality and manufacturing capacity, we build a new database of schooling quality. The country-level average test score of students in the GMAT examinations between 1984 and 2006 is used as the main measure of post-secondary schooling quality. Our OLS results suggest a strong and positive relationship between schooling quality and manufacturing capacity. Our results are robust to the addition of a fairly large number of relevant variables, corrections for influential observations and check for self-selection related biases. Furthermore, we use 2SLS technique to correct for possible endogeneity, omitted variable bias and measurement error of the schooling quality indicator. Our instrument passed the tests of exogeneity, although the maximum likelihood technique is used due to weak instrument problem

Keywords: Africa, Schooling Quality, Manufacturing Capacity

JEL Classification: I, I0, I2, I23, I25

Suggested Citation

Adewole, Musiliu Adeolu and Ola-David, Oluyomi, Post-Secondary Schooling Quality and Manufacturing Capacity in Africa (December 17, 2014). Available at SSRN: https://ssrn.com/abstract=2539489 or http://dx.doi.org/10.2139/ssrn.2539489

Musiliu Adeolu Adewole

Elizade University ( email )

P.M.B. 002
Ilara-Mokin, Ondo State
Nigeria

Oluyomi Ola-David (Contact Author)

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria

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