| Title | Chapter 7: Human capital development and international trade in Lesotho |
|---|---|
| DOI | https://doi.org/10.4102/aosis.2025.BK536.07 |
| Landing page | https://books.aosis.co.za/index.php/ob/catalog/book/536 |
| License | https://creativecommons.org/licenses/by-nc-nd/4.0/ |
| Copyright | Denis Nfor Yuni & Tsotang Tsietsi (eds.). Licensee: AOSIS (Pty) Ltd. The moral rights of the editors and authors have been asserted. |
| Publisher | AOSIS |
| Long abstract | This chapter unequivocally demonstrates that when a small economy opens up to trade, decision-making is significantly impacted, and countries with low human capital stocks tend to increase their accumulation of human capital. Trade should cause countries to diverge in their stocks of human capital when human capital is considered a production factor. The education of the labour force and the accumulation of human capital significantly influence a country’s ability to generate new ideas and adapt existing ones. It is beyond dispute that human capital enhances international trade through channels of international technological spillovers, such as domestic productivity and foreign direct investment. The vast quantity of research on human capital development has placed education at the forefront as a form of investment in this capacity. Lesotho’s human development index averaged 0.471, with a recent estimate of 0.514 in 2021, indicating that human capital development is determined by literacy, health, gross domestic product per capita and economic openness, among others. However, according to the research, human capital development progression in Lesotho is severely hindered by insufficient health care provision, high unemployment and underemployment, brain drain, gender inequalities and limited investment in skills development. This directly and indirectly affects the productive capacity of goods and services and international trade. Thus, Lesotho’s government officials and policymakers must immediately direct more funds towards investment in the education and health care sectors to achieve productive exports and economic growth. |
| Print length | 14 pages |
| Language | English (Original) |
| THEMA |
|
| BIC |
|
| Funding |
Joalane Tota holds an MSc in Economics from NUL, Lesotho. Tota is the recipient of the 2022 NUL WTO Research Chair grant. Tota’s research interests lie in international trade issues. She was a trainee in the SheGovernsTrade programme held by the trade law centre (tralac).
Ojo Johnson Adelakun is an associate professor in the Department of Economics at NUL, Lesotho, and an independent research consultant affiliated with Klynveld Peat Marwick Goerdeler (KPMG) Advisory Services in Nigeria. Adelakun holds a PhD, an MSc and a BSc in Economics, obtained from UKZN in Durban, South Africa; Ekiti State University in Ado Ekiti, Nigeria; and the University of Ibadan in Ibadan, Nigeria, respectively. With over 16 years of experience teaching and conducting research at universities in Lesotho, South Africa and Nigeria, Adelakun has received severalaccolades, including the AERC PhD Thesis Proposal Award (2018/19) atUKZN, the European Union Intra Africa Academy Mobility PhD Scholarship(2018) at Tlemcen University, Algeria, and the Best Lecturer Award for the2013/14 academic session in the Department of Economics at Joseph AyoBabalola University, Osun State, Nigeria. Adelakun’s research focuses on International Economics (Trade, Finance and Development), Macroeconomics and Environmental Resource Economics, along with policy analysis and review. Adelakun serves as a referee-reviewer for over 15 respected international journals and is a member of the editorial advisory board for the Journal of Theoretical Economics and Development Studies at the National Open University of Nigeria (NOUN), Abuja, Nigeria, and the Journal of Economics and Development (JED). Additionally, he is the board chairman of Betma Group Ltd (PYD) in Maseru, Lesotho, and the secretary and founding member of the Financial Literacy Movement, NUL Chapter. Adelakun has published 40 articles in top-rated economic journals and has provided consultancy and professional services to both the government and private sectors in Nigeria. Adelakun is also a seasoned career coach, mentor and external examiner, having supervised two PhD, 12 postgraduate, and 80 undergraduate students.