Determinants of Productivity in Mauritius: The Role of Higher Education and Research and Development

Authors

By 
Boopen Seetanah
Boopen Seetanah, University of Mauritius

BOOPEN SEETANAH is a Professor at the University of Mauritius (UoM) with research interests in tourism and transport, international trade and finance, and development economics. He is currently the Co-Chair of the WTO Chair (UoM) and the Director of Research at the International Centre for Sustainable Tourism and Hospitality (ICSTH) at the UoM. He is also the Dean of the Faculty of Law and Management. Boopen is an editorial board member and a reviewer for numerous high-rated journals. He has been consulting with the government and numerous international organizations including the UNEP, UNDP, UNCTAD, World Bank, UNECA, ADB, ILO, and RMCE amongst others.

Viraiyan Teeroovengadum
Viraiyan Teeroovengadum, University of Mauritius

VIRAIYAN TEEROOVENGADUM, Ph.D., is an Associate Professor at the University of Mauritius. He holds a PhD in Service Management, and a Master's in Educational Leadership and Management, and is a graduate in Law and Management. His primary research interests are in the fields of higher education, quality assurance and service management. Within the higher education field, Dr. Viraiyan focuses on the following research topics: quality in higher education, university ranking, use of PLS-SEM in higher education, assessment and evaluation, neuroscience, employability, well-being, doctoral supervision, corporate governance, ethical behaviours, and university performance measurement. Regarding methodological approaches, while being well-versed with both quantitative and qualitative methods, he has a keen interest in statistical modeling and psychometrics.

Harris Neeliah
Harris Neeliah, Research and Projects Division, Human Resource Development Council

Harris Neeliah joined the Human Resource Development Council in February 2013. He holds a Ph.D. in Applied Economics and a Masters in Agricultural Development Economics, both from the University of Reading, UK. Current professional development revolves around innovation, innovation management and strategy. Dr. Neeliah currently heads the Research and Projects Division at the HRDC. He was previously a Research Coordinator at the then Mauritius Research Council (2006 to 2013). From 2005 to 2006 he consulted on applied development economics projects for both local and international clients. From 2004 to 2005, he was employed as Marketing Manager at the Agricultural Marketing Board. He has also extensively lectured both in the UK and Mauritius, principally in applied economics, quantitative techniques and research methods. His research interests cover economic development, skills development, strategy and innovation.

Zameelah Khan Jaffur
Zameelah Khan Jaffur, University of Mauritius

Zameelah Khan Jaffur is a part-time lecturer in the Department of Finance and Accounting at the University of Mauritius, Mauritius. She holds a PhD in Applied Financial Modelling and a BSc (Hons) in Mathematics from the University of Mauritius. Her research interests include financial modelling, applied econometrics, meta-analysis, exchange rates and related areas.

STAR SCHOLARS PRESS

Published

Publication date : March 17, 2024

Synopsis

This study sets out to examine the drivers of total factor productivity in Mauritius using annual data covering the 1990-2019 period and a dynamic time series approach. Specifically, we focus on the effects of human capital and research and development (R&D) expenditures on total factor productivity. This is investigated through three different channels: (i) the basic channel, whereby primary school enrollment/secondary school enrollment is used as a proxy for human capital together with other main determinants of productivity; (ii) the advanced channel, whereby tertiary enrollment is used as a proxy for human capital and research and development (R&D) expenditures together with other main determinants of productivity; and (iii) the aggregate channel, whereby both the basic and advanced channels are merged to see their impacts on productivity. The results show that total factor productivity is often driven by secondary enrollment, research and development expenditures, GDP per capita and foreign direct investment inflows in both the long run and short run. For the variables of interest, the effect is quite low for the case of research and development expenditures, whereas for higher education, captured by tertiary enrollment, the effect proves to be insignificant. The findings suggest that increasing the allocation of funds for research and development may increase total factor productivity since research and development expenditure will tend to increase.


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