Investment in human capital and its impact on economic growth in Morocco: An econometric analysis

Abstract

Investing in human capital has become a paramount task for theorists and practitioners in the field of public and private policies. Building the future requires investment not only in material aspects but also in intangible aspects, particularly in education and training. This article aims to examine the impact of investing in human capital on economic growth in Morocco through an econometric model. Data collection was conducted using various sources, including the World Bank, DEPF, IMF, Office des Changes, UNCTAD, and Enssup, covering the period from 2000 to 2020. To analyze the relationship between human capital and economic growth, we considered four simultaneous variables: GDP, the budget allocated to education, enrollment rate, and graduates. All variables used in this study are a time series of aggregated data. To study the joint dynamics and specify long-term stable relationships while analyzing short-term dynamics of these variables, it is necessary to use either a Vector Autoregressive Model (VAR) or a Vector Error Correction Model (VECM). The utility of these models lies in their flexibility and capacity to test economic hypotheses, provide accurate forecasts, and address certain critiques such as simultaneity of relationships and the existence of exogenous variables. However, the choice between these models depends on verifying certain conditions, namely the order of integration of the series and their reintegration.

Keywords: Human capital, economic growth, investment, training, education.

JEL Classification : O47

Article type : Applied research.