Economics and Business
Quarterly Reviews
ISSN 2775-9237 (Online)
Published: 11 June 2021
The Impact of Human Capital Underutilization on Productivity and Economic Growth in Egypt
Eman Ahmed Hashem
Ain Shams University
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10.31014/aior.1992.04.02.359
Pages: 231-244
Keywords: Egypt, Human capital, Underutilization
Abstract
This study estimates the effects of human capital underutilization on economic growth and productivity. This paper investigated the relationship between underutilization of human capital and economic growth using a variety of econometric tests like the Augmented Dickey Fuller test, the Johansen Integration test, and the ARDL model. The results indicate that, there is a negative relationship between human capital underutilization and economic growth. The results indicate that underutilization of human capital has a greater long-term impact on economic growth than it does in the short run. Reforms to education and training systems are required in order to maximise human capital utilisation and thus increase productivity and economic growth.
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