Analysis of the Impact of Human Capital Development on Gross Domestic Product in Nigeria
This study analysed the Impact of Human Capital Development on Gross Domestic Product (GDP) in Nigeria (1981-2019). Time series data from 1981 - 2019 was collected and analyzed using series of econometric procedures such as the Augmented Dickey-Fuller (ADF) unit root test, Johansen Co-integration test and the Error Correction Model (ECM). Furthermore, findings from the ECM revealed that Life Expectancy Rate (LER) and Tertiary School Enrolment Rate (TER) had positive impact on Gross Domestic Product (GDP) and were both statistically significant at the 5% (P < 0.05) and 1% (P < 0.01) probability level respectively. Fertility Rate (FR) had negative impact on GDP and statistically significant at 1% (P < 0.01) probability level. In addition, looking at the relative impact of each of the variables on GDP, the result shows that TER has the highest contribution to GDP in Nigeria. The study concluded that investment in human capital in the form of education and capacity building in form of training and healthcare had significant impact on GDP and therefore recommended that since tertiary enrolment rate has the highest contribution to GDP, more employment opportunities should be created so that capacities acquired from our educational institutions will be translated to an increase in GDP through labour services provided by the employed graduates.
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