HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH NEXUS IN NIGERIA
Keywords:
Total Government Expenditure, Recurrent and Capital Expenditure, Education Expenditure, Health Expenditure, Life Expectancy Index, Foreign Direct InvestmentAbstract
This study examines human capital development and economic growth nexus in Nigerian using a secondary
time series data. The study applied an econometric regression technique of the Ordinary Least Square
(OLS) to ascertain the effect of macroeconomic growth induced variables on human capital development
in Nigeria. Our findings from the cointegrating regression result test suggest that there is a strong evidence
of cointegration between dependent variable (HCD) and the independent Variables. Also the study revealed
a long-run causal relationship between dependent variable (HCD) and the independent Variables. It could
be observed from our findings that the relationship between some of the variables like TGE, TEE, THE,
and FDI and human capital development is positive while that of LEI is negative. This means that TGE,
TEE, THE, and FDI have direct relationships with human capital development. In other words, an increase
in TGE, TEE, THE, and FDI will results to a rise in human capital development whereas an increase in
LEI will probably result in a fall in human capital development. In addition, the results show that TGE,
TEE, THE, and FDI have statistical significance on human capital development in Nigeria while LEI is
statistically insignificance on human capital development. This study therefore recommends that the
government should give educational grants, provide vocational training, provide basic health facilities;
enhance the competitiveness of the economy. This will avail the country the enhanced entrepreneurial
creativity, a suitable, competent, healthy and educated labor force to contribute meaningfully to national
development. The government should make adequate budget for education in line with the UNESCO
recommendation. This will help facilitate proper administration of financial revenues and other school
resources. There is the need for increased government funding for health care. The will help reduce the
challenges in healthcare and the increasing medical tourism outside the country and consequently enhance
the countries life expectancy. The government should create a secured and business friendly environment
to help attract FDI in the country.
