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Foreign aid, human capital accumulation and the potential implications for growth
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Harris, Jamelia (2021) Foreign aid, human capital accumulation and the potential implications for growth. Review of International Organizations, 16 . pp. 549-579. doi:10.1007/s11558-020-09408-8
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Official URL: http://dx.doi.org/10.1007/s11558-020-09408-8
Abstract
Previous research has explored various channels in the aid-growth relationship such as the real exchange rate, changes in manufacturing output, institutional capacity, and governance. This paper puts forward a new mechanism: human capital accumulation. International organizations financially support and/or directly collaborate with educational institutions to establish courses. The development sector, borne out of aid, demands skilled workers. The workforce in turn develops human capital to meet this demand. There is a consequent change in the skills composition in the host country, and thus the types of skills available to employers in the labor market. This may have implications for long-run growth. These mechanisms are explored through mixed-methods analysis of human capital accumulation at the tertiary level in Sierra Leone, a small low-income, aid-dependent country. The data show that post-war interventions have given rise to courses that develop skills that are demanded by local and international non-governmental organizations, but not the formal private sector. This shift toward development-type qualifications has led to excess supply of these graduates, alongside a shortage of graduates with training in science, technology, engineering, and mathematics. The latter are highly demanded by the private sector.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HD Industries. Land use. Labor |
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| Divisions: | Faculty of Social Sciences > Politics and International Studies | ||||||||
| Library of Congress Subject Headings (LCSH): | Economic assistance , Economic assistance -- Sierra Leone, Human capital, Human capital -- Sierra Leone, Occupational training , Economic development , Economic development -- Sierra Leone | ||||||||
| Journal or Publication Title: | Review of International Organizations | ||||||||
| Publisher: | Springer | ||||||||
| ISSN: | 1559-7431 | ||||||||
| Official Date: | July 2021 | ||||||||
| Dates: |
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| Volume: | 16 | ||||||||
| Page Range: | pp. 549-579 | ||||||||
| DOI: | 10.1007/s11558-020-09408-8 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Publisher Statement: | This is a post-peer-review, pre-copyedit version of an article published in Review of International Organizations. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11558-020-09408-8 | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| RIOXX Funder/Project Grant: |
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