alexa Misallocations of Human Capital in the Context of New Structural Economics Framework: Evidence from Sudan
ISSN: 2151-6219

Business and Economics Journal
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Research Article

Misallocations of Human Capital in the Context of New Structural Economics Framework: Evidence from Sudan

Yagoub Elryah*

Economic Research Forum (ERF), Economic Research and Consultancy Center IRCC, Sudan

*Corresponding Author:
Yagoub Elryah
Economic Research Forum (ERF)
Economic Research and Consultancy Center IRCC, Sudan
Tel: 00249-911387876
E-mail: yagoubelryah@hotmail.com

Received Date: September 24, 2016; Accepted Date: October 21, 2016; Published Date: October 31, 2016

Citation: Elryah Y (2016) Misallocations of Human Capital in the Context of New Structural Economics Framework: Evidence from Sudan. Bus Eco J 7: 258. doi: 10.4172/2151-6219.1000258

Copyright: © 2016 Elryah Y. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

Despite the availability of skilled and high professionals' workers, there has been misallocation of human capital and there is a little benefiting from it is contribution to economic transformation. In this paper I attempt to investigate the reasons behind human capital misallocation and how lean productivity shapes today's Sudanese productive sectors. A theoretical analysis is considered to quantify the correlation relationships between human capital and economic transformation. Data from 2008-2014 labor force survey and National Statistics bureau survey are considered. Based on econometric time series data estimations over 2000-2014, we find evidence that human capital in Sudan is associated with lower productivity per worker and thereby lower economic growth. Results further show that labor market is characterized by a majority of workers are involved in unproductive and unpaid activities. In order for economic transformation be achieved, the Sudanese authorities must enhancing the collaboration between productive sectors and educational institutions.

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