Threshold Effects between Longevity, Labour Productivity and Economic Growth in sub-Saharan Africa (SSA): a Non-dynamic Panel Data Analysis
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Abstract
Description
The theoretical demographic distribution stated
that averagely the age group of the labour force is 15 to 64 years.
Data showed that the highest longevity value of sub-Saharan
Africans is approximately 54 years in the year 2010; 10 years less
than the age of exit from the labour force, not to even compare
with the developed countries. This study investigated the
threshold effects in the relationship between longevity and labour
productivity, and between longevity and economic growth in sub-
Saharan Africa (SSA). Panel data spanning from 1990 to 2012
for 38 SSA countries were used and Hansen (1999) non-dynamic
panel data test and estimation methods were adopted. The results
revealed that, longevity was an increasing function of labour
productivity and economic growth, with the significant threshold
effects at ages 46.7 years on labour productivity and 67.5 years
on economic growth. Among other things, food availability and
capital accumulation were significantly required. Thus, policies
that could accommodate people of age 67.5 years who are still fit
to work, and provide entrepreneurial training and funds for the
unemployed people in the ages 46 to 47 years are worthwhile in
SSA countries. In addition, improvement in the provision of
quality healthcare services at an affordable rate to the very poor
sub-Sahara Africans is necessary to improve the quality of
longevity in SSA.
Keywords
HG Finance