Contact Us

For Marketing, Sales and Subscriptions Inquiries
Rockefeller Center, 45 Rockefeller Plaza
20th Flr Unit #5, New York, NY 10111
United States

Conference List

The Economics and Finance Letters

April 2014, Volume 1, 4, pp 30-38

The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models

Nidhal Mgadmi


Houssem Rachdi

Nidhal Mgadmi 1
Houssem Rachdi 2

  1. Faculty of Law, Economics and Management of Jendouba, University of Jendouba, Tunisia 1

  2. Faculty of Law, Economics and Management of Jendouba, University of Jendouba, EAF: Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar, Tunisia 2

Pages: 30-38

DOI: 10.18488/journal.29/2014.1.4/

Share :


Human capital is one of the most important drivers for economic growth. This paper aims to outline theoretical and empirical frameworks for thinking about the role of human capital in a model of endogenous growth. Only a small set of recent papers investigated the relationship between different educational levels and economic growth in one country. This first study conducted in Tunisia contributes to the existing literature by using Smooth Transition Autoregressive models (ESTAR, LSTAR) referring to non-linear least squares (NOLS) procedure to underline this non-linear relationship. The advantage of our modeling strategy is that the relationship between human capital and growth is nonlinear. The principal empirical finding conducted in Tunisia over the period 1974-2012 is that human capital exerts a significant influence on economic growth. 
Contribution/ Originality



  1. Aghion, P. and P. Howitt, 2009. The economics of growth. Cambridge: The MIT Press.
  2. Banerjee, R. and S.S. Roy, 2014. Human capital, technological progress and trade: What explains India’s long run growth? Journal of Asian Economics, 30: 15-331.
  3. Campbell, O.A. and T.C. Agbiokoro, 2013. Human capital and economic growth: A three stage least squares approach, SSRN Working Paper.
  4. Chi, W., 2008. The role of human capital in China's economic development: Review and new evidence. China Economic Review, 19(4): 421?436.
  5. Dauda, R.O., 2010. Role of human capital in economic development: An empirical study of Nigerian case. Oxford Business and Economics Conference. pp: 1-25.
  6. Dias, J. and E. Tebaldib, 2012. Institutions, human capital, and growth: The institutional mechanism. Structural Change and Economic Dynamics, 23(3): 300-312.
  7. Freire-Seren, M.J. and J. Panades I Martí, 2013. Tax avoidance, human capital accumulation and economic growth. Economic Modelling, 30: 22–29.
  8. Hall, R. and C. Jones, 1999. Why do some countries produce so much more output per worker than others? Quarterly Journal of Economics, 114(1): 83-116.
  9. Jorgenson, D.W. and B. Fraumeni, 1992. Investment in education and U.S. economic growth Scandinavian. Journal of Economics, 94(supplement): 51-70.
  10. Khalafalla, A.M. and Z. Suliman, 2013. The impact of human capital on economic growth: Empirical evidence from Sudan. Research in World Economy, 4(2): 43-53.
  11. Li, H. and L. Huang, 2009. Health, education, and economic growth in China: Empirical findings and implications. China Economic Review, 20(3): 374?387.
  12. Li, K.W. and T. Liu, 2011. Economic and productivity growth decomposition: An application to post-reform China. Economic Modelling, 28(1-2): 366?373.
  13. Lucas, R., 1988. On the mechanics of economic development. Journal of Monetary Economics, 22: 3?42.
  14. Lucas, R., 1993. Making a miracle. Econometrica, 61(2): 251- 272.
  15. Lukkonen, R., P. Saikkonen and T. Terasvirta, 1988. Testing linearity in univariate time series models. Scandinavian Journal of Statistics, 15: 161-175.
  16. Lumsdaine, R. and D. Papell, 1997. Multiple trend breaks and the unit root hypothesis. Review of Economics and Statistics, 79(2): 212–218.
  17. Mankiw, N.G., D. Romer and D.N. Weil, 1992. A contribution to the empirics of economic growth. Quarterly Journal of Economics, 107(2): 407-437.
  18. Musibau, A.B. and A.A. Rasak, 2005. Long run relationship between education and economic growth in Nigeria: Evidence from Johansen’s cointegration approach. Regional Conference on Education in West Africa: Constraints and Opportunities, Senegal. pp: 1-22.
  19. Nerlove, M., 2003. Essay in panel data econometrics. Cambridge: Cambridge University Press.
  20. Pereira, J. and M.S. Aubyn, 2009. What level of education matters most for growth? Evidence from Portugal. Economics of Education Review, 28(2): 67?73.
  21. Romer, P., 1986. Increasing returns and long-run growth. The Journal of Political Economy,  94(5): 1002-1037.
  22. Self, S. and R. Grabowski, 2004. Does education at all levels cause growth? India, a case study. Economics of Education Review, 23(1): 47?55.
  23. Terasvirta, T., 1994. Specification, estimation, and evaluation of smooth transition autoregressive models. Journal of the American Statistical Association, 89(425): 208-218.
  24. [Terasvirta, T. and H. Anderson, 1992. Characterizing nonlinearities in business cycles using smooth transition autoregressive models. Journal of Applied Econometrics, 7(1): 119-136.
  25. Zhang, C. and L. Zhuang, 2011. The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis. China Economic Review, 22(1): 165–171.
  26. Zivot, E. and D. Andrews, 1992. Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. Journal of Business and Economic Statistics, 10(3): 251–270.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 2 ) The Impact of Investment Climate Reforms on the Development of Small and Medium Sized Enterprises in Nigeria: A Policy Brief
( 3 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 4 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 5 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 6 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives
( 7 ) The Impact of Dividend Policy on Shareholders’ Wealth before and After Financial Melt down: Evidence from FMCG Sector in India
( 8 ) Factors Impacting on SMEs Internationalization: Dairy Industry in Zimbabwe
( 9 ) The Life-Time of Tomorrow Party of Japan and Its Negative Impacts on the Anti-Nuclear Movements in Japan’s Politics
( 10 ) An Assessment of the Impact of Information Communication Technology (ICT) On the Administration of Public Records: A Case Study of the Bolgatanga Municipal Assembly in the Upper East Region of Ghana-West Africa
( 11 ) Impact of Inflation on Per Capita Income in Emerging Economies: Evidence from BRICS Nations
( 12 ) The Impact of the Global Financial Crisis on the Debt, Liquidity, Growth, and Volume of Companies in Palestine Stock Exchange
( 13 ) The Impact of the Decline in Oil Prices in Latin America
( 14 ) Measuring the Quality of Islamic Banks Services and Its Impact on Customers Satisfaction A Survey Study on the Islamic Banks Customers in Lattakia-Syria
( 15 ) The Indirect Impact of Overconfidence on the Performance of Tunisian Firms Through their Financing Structure
( 16 ) Impact of FDI on Environmental Quality of China
( 17 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 18 ) The Role of Social Entrepreneurship in Pakistan and its Impact on Economy
( 19 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 20 ) Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States
( 21 ) Impact of Participatory Decision Making on Organisational Goal Attainment
( 22 ) The Impact of Organisational Culture on Public Sector Performance: A Case Study of Local Authorities in Zimbabwe
( 23 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 24 ) An Investigation of the Impact of Organisational Structure on Organisational Performance
( 25 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 26 ) Impact of Asymmetric Government Spending on Real Balances Demand
( 27 ) Investigating the Impact of Business Alignment on Job Gratification in an Organization: The Case of a University in Egypt
( 28 ) Impact of Network Finance Development on Inflation: Evidence from Chinese Market
( 29 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 30 ) Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia
( 31 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 32 ) The Impact of Land Price Movements on the Properties in Croatia
( 33 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 34 ) The Impact of Economic Growth, Oil Price, and Financial Globalization Uncertainty on Financial Development: Evidence from Selected Leading African Countries
( 35 ) Impact of Savings on Economic Growth in Africa
( 36 ) An Empirical Analysis of the Impact of Decentralization on Poverty in Cameroon
( 37 ) The Impact of Merger and Acquisition on the Financial Performance of the Nasdaq Listed Small Size Technology Companies
( 38 ) An Empirical Investigation of the Impact of FDI, Export and Gross Domestic Savings on the Economic Growth in Bangladesh
( 39 ) The Impact of Data Frequency on the Level of Exchange Rate Pass-through to Consumer Prices in Nigeria
( 40 ) Analyzing the Impact of Eco-Innovation on Carbon Emissions Abatement: Evidence from OECD Countries
( 41 ) The Impact of Covid-19 Pandemic on the Global Economy: Emphasis on Poverty Alleviation and Economic Growth
( 42 ) Impacts of Domestic Savings and Domestic Investment on Economic Growth: An Empirical Study for Pakistan
( 43 ) The Impact of Trade on Poverty in Sub-Saharan Africa: Do Sources Matter?
( 44 ) The Impact of Fundamental Factors on the Share Price of Micro-Sized Nasdaq Listed Technology Companies
( 45 ) On the OCC Announcement Allowing US Banks to Use Stablecoins and the Immediate Impact on Cryptocurrency Valuations
( 46 ) Impacts of the U.S.-China Trade Conflicts News on U.S. and Chinese Stock Returns
( 47 ) Relational Capabilities under Moderating and Mediating Effects to Understand their Impacts on Firm Financial Performance
( 48 ) Analysis of Factors Affecting Capital Structure and the Impact on LQ-45 Share Price in 2015-2018
( 49 ) Inflationary Rate in Nigeria: Impact of Foreign Capital Inflows
( 52 ) Challenges of Human Rights Abuses in Nigerian Democratic Governance – Which Way Forward ?
( 53 ) Nigerian Politics, Economic Development, and the Role of Human Rights Organisations on Elections
( 54 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 55 ) Factors Influencing Human Capital in Ready Made Garments Industry in Bangladesh
( 56 ) Africa's Human Capital Development: Is Public Finance Management an Effective Strategy?
( 57 ) Re-Engineering Nigerian Economy through Human Capital Development: A Case of Manufacturing Firms In Southern Part of Nigeria
( 58 ) Intellectual Property Rights, Human Capital and Innovation in Emerging and Developing Countries
( 59 ) Factors Influencing on Human Resources Development in SMEs Service Enterprises in Industry 4.0: The Case of Thai Nguyen Province, Vietnam
( 60 ) Human Capital and Economic Growth in Latin America: A Cointegration and Causality Analysis
( 61 ) Human Capital Development and Economic Growth in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach
( 62 ) Effects of Green Human Resource Management on Employee Green Behavior: Moderating Role of Employee Environmental Knowledge
( 65 ) Explaining Psychological Capital Components through Organization’s Ethical Climate Components
( 66 ) Rice Farmer and Capital Formation: A Case Study of Rice Farmer's Credit Cooperative in Itoikin, Ikosi-Ejirin LCDA, Lagos State
( 67 ) Under-Utilization of Female Capital: A Quantitative Study in Pakistani Perspective
( 68 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 69 ) Foreign Capital Inflows and Unemployment in Nigeria: A New Evidence from ARDL-Bounds Testing Approach
( 70 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 72 ) Decision-Making on Working Capital Management, Based on Industry Differences
( 73 ) Foreign Direct Investment in Zimbabwe: The Role of Uncertainty, Exports, Cost of Capital, Corruption and Market Size
( 76 ) Analysis of Effect of Profitability, Capital, Risk Financing, the Sharia Supervisory Board and Capabilities Zakat in Islamic Perspective with Circular Approach Causastion on Islamic Banks in Indonesia
( 77 ) Incidence of Short Term Private Capital Outflow: Empirical Analysis in Nigeria
( 80 ) Does Capital Structure Affect the Profitability of Listed Family and Non-Family Firms? Evidence from Bangladesh
( 81 ) Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation
( 82 ) Factors Affecting the Capital Structure of the Textile Industry in Bangladesh: An Inferential Study
( 83 ) The Effect of Capital Structure Decisions on Profitability of Quoted Consumer Goods in Nigeria
( 86 ) The Role of Social Capital and Social Innovation in Economic Growth
( 89 ) Natural Resource Rents-Capital Flight Nexus in Selected ECOWAS Countries: Evidence from Non-Linear ARDL Approach
( 90 ) Consideration the Relationship Between Information Communications Technology and Economic Growth in Top 10 Economic
( 91 ) Shifting Global Economic Paradigm
( 92 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 93 ) The Prospects of Accounting and Economic Systems in the Era of Global Knowledge Economy
( 94 ) Labor and Economic Growth in Zimbabwe
( 96 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 98 ) Long-Run Relationships and Causality Tests Between Military Expenditure and Economic Growth in India
( 99 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 100 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 101 ) The Entrepreneurship, Knowledge Spillover and Economic Growth
( 102 ) Corruption’s and Democracy’s Effects on Economic Growth
( 103 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 105 ) The Role of Information and Communication Technology in Rural Socio-Economic Development in Africa
( 106 ) Dividend Policy Relevancy in Theoretical and Practical Economics
( 107 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 108 ) Is Brics a Viable Solution for Russia in the Context of the Present Eu’s Economic Sanctions?
( 109 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 110 ) Rural Saving Mobilizations and Economic Development in Akamkpa Local Government Area of Cross River State - Nigeria
( 112 ) Rural - Urban Balance as a Measure of Socio-Economic Development with Special Reference to Iran
( 113 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 114 ) The Effect of Access and Quality of Education on Economic Development in Botswana
( 116 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 117 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 118 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 119 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 120 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 121 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 122 ) A Case Study of Local Government Implementation of the Ward Based Local Economic Development (LED) Program
( 123 ) Military Regimes and Nigeria’s Economic Development, 1966-1999
( 124 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 127 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 130 ) Assessment of Dual Carriageway for Sustainable Socio-Economic Development in Ado Ekiti, Nigeria
( 132 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 133 ) Uncertainties in Global Economic Policy and Nigerias Export Earnings
( 134 ) Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria
( 135 ) External Debt and Economic Growth: Two-Step System GMM Evidence for Sub-Saharan Africa Countries
( 137 ) The Colonialists & Indigenous Exchange Currency: Tracing the Genesis of Socioeconomic Woes in Postcolonial Nigeria
( 138 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 139 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 141 ) The Relationship between Financial Development, Economic Growth, and Inflation: Evidence from Southeast Asia
( 142 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 143 ) Does External Borrowing Affect Economic Growth? A Revisit of the Age-Long Debate for Nigeria
( 144 ) Nexus between Non-Oil Sectoral Contribution and Economic Growth in Nigeria 1981-2018
( 145 ) Management of The CFA Franc: What are the Fundamentals of the Real Exchange Rate in West African Economic and Monetary Union (WAEMU)?
( 146 ) Investigating the Environmental Effects of Economic Growth in African Economies
( 147 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach
( 150 ) The Effects of Macroeconomic Variables on Bank Default: A Case Study in Brazil
( 151 ) Deficit Financing Asymmetry and Nigerias Economic Growth: A Nonlinear Autoregressive Distributed Lag Approach
( 153 ) Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test
( 154 ) Fiscal Decentralization and Economic Growth: Assessing Public Policy in Ukraine
( 155 ) Socioeconomic Environment and Obesity on the US West and East Coasts
( 158 ) Exploring the Linkages between Remittances, Economic Growth and Poverty: Empirical Evidence from Pakistan
( 160 ) Contribution of Domestic Direct Investment and Direct Foreign Investment to Economic Growth in Indonesia Era Joko Widodo
( 161 ) Contribution of Ready-Made Garments Industry on the Economic Development of Bangladesh: An Empirical Analysis
( 164 ) Financial Development and Economic Growth in Nigeria: New Evidence from a Threshold Autoregressive and Asymmetric Analysis
( 165 ) Socioeconomic Determinants of Drug Abuse in the United States
( 166 ) Central Bank Independence and Economic Growth of Ghana: What Inflation and GDP Per Capita Growth Rates Matter?
( 167 ) Investigating the Nexus among Poverty Alleviation, Unemployment, and Economic Development in Nigeria
( 168 ) Economic and Noneconomic Forces on Remittance Receiving: A Panel Analysis of Top Remittance Sending Countries towards Bangladesh
( 170 ) Twin Deficit Hypothesis and Macroeconomic Fundamentals: New Evidence from Nigeria
( 171 ) Nexus of Monetary Policy on Economic Growth: A Study of Ghana
( 183 ) New Evidence on the Link Between Income Inequality and Misery Index: A Nonlinear Time Series Analysis
( 186 ) The Nexus between Financial Crisis and Household Consumption: Evidence from Emerging Countries
( 187 ) Effective Tax Administration and Institutionalization of Accounting Systems in Small and Medium Scale Enterprises: Evidence from Nigeria
( 188 ) Moderating Effect of Demographics on Monetary Motivation and Employees Job Performance Relationship: Evidence from Malaysia
( 191 ) Share Options, Share Award and Firm’s Performance: Evidence from Malaysian Public Listed Companies
( 193 ) Does Managerial Emotional Biases Affect Debt Maturity Preference? Bayesian Network Method: Evidence from Tunisia