Human Capital and Economic Growth in North African Countries: The Role of Institutional Quality

Abstract

This paper aims to study the association between institutional quality, human capital, and economic growth in 4 North African countries. Annual panel over the 2000 to 2021 period are examined using the System GMM. The result show that institutional quality and human capital can fuel economic growth. Interestingly, institutional quality and human capital have a significant positive interactive impact on the economic growth of North African countries. Policy implications of these results are that careful attention should be paid to co-development policies to improve the institutional quality and the human capital in these countries. Policies should also deliberate economic growth policies to maintain sustainable economic growth.