Welfare impact of globalization in developing countries: Examining the mediating role of human capital

Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is stil...

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Autores principales: Olagunju, Kehinde Oluseyi, Ogunniyi, Adebayo, Oguntegbe, Kunle Francis, Raji, Ibrahim Oluwole, Ogundari, Kolawole
Formato: Journal Article
Lenguaje:Inglés
Publicado: MDPI 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/146084
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author Olagunju, Kehinde Oluseyi
Ogunniyi, Adebayo
Oguntegbe, Kunle Francis
Raji, Ibrahim Oluwole
Ogundari, Kolawole
author_browse Ogundari, Kolawole
Ogunniyi, Adebayo
Oguntegbe, Kunle Francis
Olagunju, Kehinde Oluseyi
Raji, Ibrahim Oluwole
author_facet Olagunju, Kehinde Oluseyi
Ogunniyi, Adebayo
Oguntegbe, Kunle Francis
Raji, Ibrahim Oluwole
Ogundari, Kolawole
author_sort Olagunju, Kehinde Oluseyi
collection Repository of Agricultural Research Outputs (CGSpace)
description Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is still unclear. In this study, we examine the roles of education and health dimensions of human capital in globalization and its impact on the poverty gap and the child mortality rate using cross-country panel data covering 110 developing countries between 1970 and 2015. We use a model based on system generalized method of moments (SGMM) to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The empirical results reveal that globalization reduces poverty gap and child mortality rate, and that an increase in the stock of human capital in developing economies improves welfare outcomes. The study also finds that human capital strengthens the negative impact of globalization on poverty gap and child mortality rate. For example, should enrollment in secondary school in Nigeria (in 2013) be increased from 39.2% to 61.6%, on average, it could translate into 2508 fewer under-five child deaths. We recommend that interconnectedness and promotion of human capital development should constitute a fundamental component of policy mix targeted at enhancing reduction of poverty and child mortality rate in developing countries.
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spelling CGSpace1460842024-10-25T07:57:08Z Welfare impact of globalization in developing countries: Examining the mediating role of human capital Olagunju, Kehinde Oluseyi Ogunniyi, Adebayo Oguntegbe, Kunle Francis Raji, Ibrahim Oluwole Ogundari, Kolawole human capital globalization welfare developing countries poverty Despite remarkable progress in the fight against poverty during the past few decades, the proportion of the poor living in developing countries is still on the high side. Many countries have promoted integration as an important development strategy; however, its impact on welfare of the poor is still unclear. In this study, we examine the roles of education and health dimensions of human capital in globalization and its impact on the poverty gap and the child mortality rate using cross-country panel data covering 110 developing countries between 1970 and 2015. We use a model based on system generalized method of moments (SGMM) to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The empirical results reveal that globalization reduces poverty gap and child mortality rate, and that an increase in the stock of human capital in developing economies improves welfare outcomes. The study also finds that human capital strengthens the negative impact of globalization on poverty gap and child mortality rate. For example, should enrollment in secondary school in Nigeria (in 2013) be increased from 39.2% to 61.6%, on average, it could translate into 2508 fewer under-five child deaths. We recommend that interconnectedness and promotion of human capital development should constitute a fundamental component of policy mix targeted at enhancing reduction of poverty and child mortality rate in developing countries. 2019-09-26 2024-06-21T09:05:47Z 2024-06-21T09:05:47Z Journal Article https://hdl.handle.net/10568/146084 en Open Access MDPI Olagunju, Kehinde Oluseyi; Ogunniyi, Adebayo; Oguntegbe, Kunle Francis; Raji, Ibrahim Oluwole; and Ogundari, Kolawole. 2019. Welfare impact of globalization in developing countries: Examining the mediating role of human capital. Economies 7(3), 84. https://doi.org/10.3390/economies7030084
spellingShingle human capital
globalization
welfare
developing countries
poverty
Olagunju, Kehinde Oluseyi
Ogunniyi, Adebayo
Oguntegbe, Kunle Francis
Raji, Ibrahim Oluwole
Ogundari, Kolawole
Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title_full Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title_fullStr Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title_full_unstemmed Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title_short Welfare impact of globalization in developing countries: Examining the mediating role of human capital
title_sort welfare impact of globalization in developing countries examining the mediating role of human capital
topic human capital
globalization
welfare
developing countries
poverty
url https://hdl.handle.net/10568/146084
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