HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA 1

  • Akaakohol, Bridget Mlumun College of Education Katsina-Ala
  • Ijirshar, Victor Ushahemba Benue State University Makurdi
Keywords: Economic Growth, Government Expenditure on Education, Government Expenditure on Health and Human Capital.

Abstract

The study examined the impact of human capital development on economic growth in Nigeria covering the period of 1981 to 2015. The study used Augmented Dickey Fuller test, Johansen co-integration test, error correction test and impulse response/variance decomposition for the analysis. The study found that data for the variables were not stationary but became stationary after the first difference. There was a bidirectional relationship between economic growth and government expenditure on health and between economic growth and government expenditure on education at 5% level of significance. The study also found that there is long-run positive relationship between human capital development and economic growth in Nigeria. The study recommends that the Nigerian government should sustain increased investment in education and health and encourage private investment in the sectors too.

Author Biographies

Akaakohol, Bridget Mlumun , College of Education Katsina-Ala

Department of economics

Ijirshar, Victor Ushahemba, Benue State University Makurdi

Department of Economics

References

Acemoglu, D. (2013). Human Capital Theory. MIT Bilkent.
Adawo, M.A. (2011). Has education contributed to the economic growth in Nigeria? Journal of Economics & International Finance, 3(1): 46- 58.
Adebiyi, M.A. (2005). Education-Economic Growth Paradox in Nigeria: An Auto-regressive Model. Retrieved from www.google.com. 13 of December, 2013.
Adelakun, O.J. (2011). Human capital development and economic growth in Nigeria. European Journal of Business and Management, 3(9): 29-37.
Adeyemi, P. A. and Ogunsola, A.J. (2016). The Impact of Human Capital Development on Economic Growth in Nigeria: ARDL Approach. IOSR Journal of Humanities and Social Science (IOSR-JHSS). 21(3): 1-7.
Allege, P.O and Ogunrinola I.O. (2005). Human Capital Development and Economic Growth in Nigeria. Proceedings of the international Conference on Human Development. Covenant University, Ota Ogun State, Nigeria.
Amadeo, K. (2016). What Is Economic Growth? U.S. Economy. Retrieved from https://www.thebalance.com/what-is-economic-growth- 3306014 on 18th May, 2017
Amassoma, D. and Nwosa, P.I. (2011). Investment in Human Capital and Economic Growth in Nigeria: A Causality Approach. Canadian Social Science, 7(4): 114-120.
Barro, R. (1991). Economic Growth in a Cross Section of Countries.
Quarterly Journal of Economics. 106(1): 407-443.
Becker, G. (1964). Human Capital. 2nd edition. New York: Columbia University Press.
Bloom, D. E., and Canning, D. (2003). The health and poverty of nations: from theory Practice.. Journal of Human Development, 4(1): 47-71.
Bowles, S. and Gintis, H. (1993). The democratic firm: an agency-theoretic evaluation. In Bowles, S., Gintis, H. and Gustafsonn, B. (eds.) (1993). Markets and democracy: participation, accountability and efficiency, Cambridge: Cambridge Univ. Press. 13-39.
Burneth, N. K., Marble, and Patrinos, H.A. (1995). Setting Investment Priorities in Education Finance and Development: Development. 42- 45
CBN (2009). Central Bank of Nigeria Bulletin, Abuja CBN (2015). Central Bank of Nigeria Bulletin, Abuja.
Cheren, T. (2013). An Investigation of the Impact of Education on Rural Economic Development in Agatu LGA, Benue State (Unpublished).
Daly, H., Czech, B., Blackwelder, B., Magnus-Johnston, J., and Zencey, E. (2010). Two Meanings of Economic Growth. The Daly News. Steady state commentary and related news. Centre for the Advancement of Steady State Economy (CASSE).
Denison, E. F. (1962). The Sources of Economic Growth in the United States and the Alternatives. New York: Committee for Economic Development.
Eigbiremolen, G. O. and Anaduaka, U. S. (2014). Human Capital Development and Economic Growth: The Nigeria Experience. International Journal of Academic Research in Business and Social Sciences. 4(4): 25-35.
Grossman, G. M. and Eihanah, H. (1989). Growth and Welfare in Small Open Economy. XBER Working Paper 2970.
Gujarati, D. N. (2004). Basic Econometrics. The McGraw- Hill Companies. Guru (2016). Economic Growth: it's Meaning and Concept-Explained! R e t r i e v e d f r o m h t t p : / / w w w. y o u r a r t i c l e l i b r a r y. c o m
/economics/economic-growth-its- m e a n i n g - a n d - c o n c e p t - explained/38241/ on 18th May, 2017
Harbison, F. (1973). Human Resources .is the Wealth of Nations, New York: Oxford University Press.
Harbison, F. H. (1962). Human resources in development planning in modernizing economies. International Labour Review, 85(5): 2- 23.
Isola W. A. and Alani, R. A. (2012). Human Capital Development and Economic Growth: Empirical Evidence from Nigeria. Asian Economic and Financial Review, 2(7): 813-827
Jaiyeoba, V. S. (2015). Human Capital Investment and Economic Growth in Nigeria. An International Multidisciplinary Journal, Ethiopia. 9(1): 30-46.
Johnson, A. O. (2011). Human Capital Development and Economic Growth in Nigeria. European Journal of Business and Management. 3(9): 29-40.
Kessier, J. (2012). Economic growth. Business and Public Policy. The Wharton High School. KWts Term Suggestion.
Mankiw, N., Romer, D. and Weil, D. (1992).A Contribution to the Empirics of EconomicGrowth. Quarterly Journal of Economics, 107(2): 407- 437.
Mba, I. C., Mba, E. I., Ogbuabor, J. E. and Ikpegbu, C. H. (2013). Human Capital Development and Economic Growth in Nigeria. Journal of Economics and Sustainable Development. 4(18): 48-52.
Nelson, R. R and Phelps, E. S. (1966). Investment in humans, technological diffusion, and economic growth, in: American Economic Association Papers and Proceedings, 56(1-2): 69-75.
Ogujiuba, K. (2013). The Impact of Human Capital Formation on Economic Growth in Nigeria. Journal of Economics, 4(2): 121-132.
Okojie C.E.E. (1995). Human capital formation for productivity growth in Nigeria. The Nigerian Economic and Financial Review. 44(1): 1-10.
Oluwatobi, S.O. and Ogunrinola, I.O. (2011). Government Expenditure on Human Capital Development: Implication for Economic Growth in Nigeria. Journal of Sustainable Development, 4(3): 1-8.
Oluwatoyin, M. A. (2013). Human capital investment and economic growth in Nigeria: the role of education and health. Knowledge Management, Information Management, Learning Management. No. 14: 266-277.
Owoeye, O. and Adenuga, O.O. (2007). Public Expenditures in Education/Health & Economic Growth. New Evidence form OECD Countries. Retrieved from http://iaes-confex.com on 22th August, 2017.
Sankay, O.J. Ismail, R and Shaari, H. (2010). The impact of Human capital Development on the economic growth of Nigeria. Prosiding Perkem, 5(1): 63-72.
Savedoff, W. (2003). How Much Should Countries Spend on Health? World Health Organization (WHO), Geneva.
Schultz, T. (1959). Human wealth and economic growth. Humanist, 2(1): 109–17.
Schultz, T. (1961). Investment in human capital. American Economic Review.
51(1): 1-17
Schultz, T. (1971). Investment in Human Capital: The Role of Education and Research. New York: Free Press, NY, Mac Millan.
Solow, R. M. (1956). A contribution to the theory of economic growth.
Quarterly Journal of Economics. Oxford Journals, 70(1): 65–94.
Swan, T. W. (1956). Economic growth and capital accumulation. Economic Record. Wiley, 32(2): 334–361.
Todaro, M.P. and Smith, S.C (2003). Economic Development. India: Pearson Education Singapore Pte ltd.
Published
2019-05-21