Human Capital, Trade Openness and Economic Growth in Nigeria

Résumé

The study investigated the effect of human capita and trade openness on economic growth in Nigeria. The time series data was used for the study, which variables include gross domestic product growth proxied economic growth, net export, real exchange rate, foreign direct investment, total government expenditure on education, trade openness, primary school enrolment and life expectancy which spans from 1986 to 2020. These data were sourced from Central Bank of Nigeria, World Development Indicator (2021). The study adopted error correction model (ECM) as an estimating technique to explain the effect of the nexus. However, the results of Ordinary Least Square estimation of the ECM suggests that there is positive and statistically significant between trade openness, primary school education and foreign direct investment and economic growth while total government expenditure on education, real exchange rate, and net export have negative and insignificant impact on economic growth. The study therefore concludes with recommendations that government should reduce rate of importation, encourage export, invest more in education, encourage foreign investors and equally adopt a workable policy that will stabilize macroeconomic variables.