The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?

This paper investigates the moderating role of institutional quality on the relationship between education and economic growth in Sub-Saharan Africa (SSA). The study applies the panel ARDL model to data from 18 SSA countries spanning 2000–2020 for its main analysis, along with a battery of diagnosti...

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Main Authors: Mohammed N. Abu Alfoul, Ayman Hassan Bazhair, Ibrahim N. Khatatbeh, Adam G. Arian, Mahmoud N. Abu Al-Foul
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/12/11/300
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author Mohammed N. Abu Alfoul
Ayman Hassan Bazhair
Ibrahim N. Khatatbeh
Adam G. Arian
Mahmoud N. Abu Al-Foul
author_facet Mohammed N. Abu Alfoul
Ayman Hassan Bazhair
Ibrahim N. Khatatbeh
Adam G. Arian
Mahmoud N. Abu Al-Foul
author_sort Mohammed N. Abu Alfoul
collection DOAJ
description This paper investigates the moderating role of institutional quality on the relationship between education and economic growth in Sub-Saharan Africa (SSA). The study applies the panel ARDL model to data from 18 SSA countries spanning 2000–2020 for its main analysis, along with a battery of diagnostics test to ensure the robustness of the results. The results reveal that the long-term effect of education on economic growth is statistically insignificant, attributing this finding to high rates of education exclusion and low-quality education. Remarkably, the research emphasizes the moderating role of institutional quality, showing the positive effects of education on economic growth when countries demonstrate robust corruption control and political stability. The study contributes to the existing literature by highlighting specific institutional factors influencing the effectiveness of education in driving economic growth, emphasizing the need for a strong institutional framework alongside educational efforts for sustainable development. The findings highlight that robust institutions form a crucial infrastructure that enhances the effectiveness of education in driving productivity and fostering economic growth.
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spelling doaj-art-b24780409b9b4e15b4719bf564fe21622025-08-20T02:28:12ZengMDPI AGEconomies2227-70992024-11-01121130010.3390/economies12110300The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?Mohammed N. Abu Alfoul0Ayman Hassan Bazhair1Ibrahim N. Khatatbeh2Adam G. Arian3Mahmoud N. Abu Al-Foul4Department of Computing Technologies and Data Analytics, Ezymart Corporation Pty Ltd., Sydney, NSW 2210, AustraliaDepartment of Economics and Finance, Faculty of Business Administration, Taif University, Taif 21974, Saudi ArabiaDepartment of Banking and Financial Sciences, Business School, The Hashemite University, Zarqa 13133, JordanPeter Faber Business School, Australian Catholic University, Banyo, QLD 4014, AustraliaDepartment of Curriculum and Instruction, Yarmouk University, Irbid 21163, JordanThis paper investigates the moderating role of institutional quality on the relationship between education and economic growth in Sub-Saharan Africa (SSA). The study applies the panel ARDL model to data from 18 SSA countries spanning 2000–2020 for its main analysis, along with a battery of diagnostics test to ensure the robustness of the results. The results reveal that the long-term effect of education on economic growth is statistically insignificant, attributing this finding to high rates of education exclusion and low-quality education. Remarkably, the research emphasizes the moderating role of institutional quality, showing the positive effects of education on economic growth when countries demonstrate robust corruption control and political stability. The study contributes to the existing literature by highlighting specific institutional factors influencing the effectiveness of education in driving economic growth, emphasizing the need for a strong institutional framework alongside educational efforts for sustainable development. The findings highlight that robust institutions form a crucial infrastructure that enhances the effectiveness of education in driving productivity and fostering economic growth.https://www.mdpi.com/2227-7099/12/11/300educationinstitution qualityeconomic growthSSA
spellingShingle Mohammed N. Abu Alfoul
Ayman Hassan Bazhair
Ibrahim N. Khatatbeh
Adam G. Arian
Mahmoud N. Abu Al-Foul
The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
Economies
education
institution quality
economic growth
SSA
title The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
title_full The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
title_fullStr The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
title_full_unstemmed The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
title_short The Effect of Education on Economic Growth in Sub-Saharan African Countries: Do Institutions Matter?
title_sort effect of education on economic growth in sub saharan african countries do institutions matter
topic education
institution quality
economic growth
SSA
url https://www.mdpi.com/2227-7099/12/11/300
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