DOES GLOBALIZATION MATTER FOR HUMAN CAPITAL DEVELOPMENT? EVIDENCE FROM NIGERIA?

Abstract

The paper examined the effect of globalization on human capital development in Nigeria. The study utilized secondary data sourced from the statistical bulletin published by the Central Bank of Nigeria (CBN) and World Development Index for the period which spanned 1980-2021.  Relevant diagnostic tests were conducted to ensure the reliability of the data which is time series in nature in order to avoid spurious regression. The preconditions required for the adoption of Auto Regressive Distributed Lag (ARDL) Model were satisfied. The study adopted the ARDL model to analyze the data, The hypotheses were structured to test for the short run and long run effects of globalization on human capital development in Nigeria for the period under study. It was revealed from the data analyzed that globalization which was proxied as trade openness signed negative and statistically significant in the long run although the short run result was positive and non-significant. However, the money supply and exchange rate figures which served as control variables were positive and statistically significant to human capital development for the period under study. The study therefore recommended that governments at all levels should concentrate on home grown education and entrepreneurship trainings that will positively impact on the human capital development by funding adequately institutions of learning from the primary through secondary to tertiary levels and thread cautiously with borrowed technology and culture that may do more harm than favour to human capital resource in Nigeria.