42
43 significant relationship. Countries with good quality education rapidly developed compared to their counterparts that had poor quality education (Gaule, 2016).
The education system of Uganda should also be reinstated, to not only encompass the Higher Education sector but rather for all education levels; Primary and Secondary.
The curriculum and syllabus of all the levels of education should create graduates who are innovative and job creators, not seekers. The training given to the students at all levels must empower them to have knowledge, creativity and skills to become entrepreneurs who have the ability to start up new projects, rather than being unemployed or migrating to the developed countries in expectation of better paying jobs after graduation.
Increasing investment in other sectors like tourism and trade should, moreover, also occur in lieu of just investing in education alone, so that educated professionals will be less likely to migrate to developed countries in search for better paying jobs. Other sectors like trade and tourism can boost economic growth by rising the GDP, and this too will increase the employment rate of both skilled and unskilled laborers, thence increasing economic growth.
A restricting Government policy on the migration of the skilled laborers is also an option to consider (Romero, 2013). Uganda should set up strict laws on the migration of educated people, mainly the ones who have been sponsored or awarded scholarship by the Government to reduce on the human capital and financial losses of investing in students who then later migrate to developed countries after graduation. A Government can also restrict access to the TOEFL test which is a requirement by most developed countries where English is a Primary language. Scholarships should be awarded to those
44 who have a close social connection with their families and are likely to return to their home countries.
Furthermore, skilled laborers would be more motivated to stay in Uganda, if the minimum salary was increasing in conjunction with better working conditions. Most of the skilled laborers migrate from Uganda due to the pursuit for better paying jobs in the developed countries. Increasing increments in salary would entice those abroad and inspire the ones still working in Uganda. Kendall (2017), suggests medical doctors can be motivated to work in Uganda if the government provided all the necessary medical equipment required at their workplace.
Domestic aspects such as economic capacity, institutions, governance, political stability and rights of citizens, in addition to the microstructure of relationships should also be considered (Portes, 1976). China in the 1980s sponsored students for further studies, but some didn’t return to China after graduation. When the government noticed this, they advocated for aspects of spreading nationalism and patriotism to their citizens, which later prompted some to return because they felt the need to ‘have a stone’ in the development of their country. These policies should also be used by developing countries to mitigate brain drain.
6.3: Further Research
This study uses higher education enrollment as a proxy for human capital, but more research can be conducted using higher education investment to examine the relationship of human capital and economic growth. Higher education investment is a
45 good determinant because it focuses on resources injected in the education sector, rather than the quantity of students.
Further research should also be conducted on the quality of education in Uganda.
Many researchers claim that good quality education has a positive relationship with economic growth, unlike higher education enrollment or the quantity of the students (Fuller et. al. 1986). The quality of education may be the reason why we have a high unemployment rate of educated people.
Brain drain in Uganda should be examined further so that the rate of the migration of educated people reduces. Uganda is losing much of it’s human capital through brain drain which is hindering the development. Conversely, the student-teacher ratio at higher education establishments is proof of less skilled laborers migrating overseas, which exacerbates the need for the Government to resort to importing skilled labor from other countries.
46
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52
APPENDICES
Appendix 1: The Fixed Effects Model
Dependent Variable: LOG(GDP) Method: Panel Least Squares Date: 11/22/19 Time: 11:05 Sample (adjusted): 1975 2017 Periods included: 43
Cross-sections included: 5
Total panel (unbalanced) observations: 113
Variable Coefficient Std. Error t-Statistic Prob.
C 0.637454 1.361548 0.468183 0.6406
LOG(ENROLL) -0.045273 0.029731 -1.522753 0.1308 LOG(GFK) 0.384701 0.035845 10.73232 0.0000 LOG(POPN) 0.846645 0.089901 9.417530 0.0000
Effects Specification Cross-section fixed (dummy variables)
R-squared 0.991068 Mean dependent var 22.66180
Adjusted R-squared 0.990472 S.D. dependent var 1.037771
S.E. of regression 0.101296 Akaike info criterion -1.673366
Sum squared resid 1.077401 Schwarz criterion -1.480277
Log likelihood 102.5452 Hannan-Quinn criter. -1.595013
F-statistic 1664.326 Durbin-Watson stat 0.274886
Prob(F-statistic) 0.000000
53 Appendix 2: The Random Effects Model