Abstract:
This study deals with the impact of human capital on economic growth in
Sudan. It is scientifically crucial to thoroughly identify the human capital as
average years of schooling of population aged 15 years and above .This
study handles the concepts of human capital, its measurements, the
theoretical and empirical literature of human capital and economic growth
on the local (Sudan) and international levels.
The importance of the study was to shed light on human capital and its effect
on economic growth in Sudan, in addition , there are few studies in the field
of the study in Sudan, and so it might be an addition to the Sudanese
library.
This study examines the effect of human capital on the economic growth in
Sudan, by considering the reverse impact or causation of the economic
growth on human capital accumulation. So to analyze this simultaneity
between Human Capital and Economic Growth, the simultaneous equations
were used. A Three-Stage Least Square technique was applied on the model
by using data for the period 1970-2005.
By the estimation of the model that describes the behavior of the economy,
the study obtained the parameters which characterize the process of human
capital accumulation. The study found that, the human capital has a positive
effect on economic growth while the retirement effect
has a negative
effect. On the other hand , the study found that, the economic growth has a
positive and significant effect on human capital in Sudan on the data sample
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which was used . So there is a reverse impact or causation between human
capital and economic growth.
The most important recommendations for this study are that efforts should
be geared towards improving the quality of education to enhance the skills
of the labor force through the training which will increase productivity that
will help increase the per capita GDP which in turn have a favorable impact
on human capital accumulation which will help greatly in maintaining good
economic performance.
VII
