While developed and most developing nations have seen the need and continue to invest heavily in the development and training of her manpower as shown by huge budgetary allocations to education and health, Nigeria continues to play politics with her human capital development policy which has been poor and only been effective on paper despite the huge outlay of human capital available at our disposal. This study therefore examined the impact of human capital development on the macroeconomic performance of Nigeria. Using autoregressive distributed lagged model, the study proxied human capital development using government expenditure on education, government expenditure on health, secondary school enrolment rate, and school enrolment rate at tertiary level, while per capita GDP was used as proxy variable for measuring macroeconomic performance.
The results of the estimated short and long run ARDL models indicated, an insignificant and negative relationship between human capital development and gross domestic product per capita (GDPPC) in the short run. Another result of this study is that, only tertiary enrolment rate (TER) has a significant and positive impact on gross domestic product per capita (GDPPC). This finding was an indication of relatively good but insufficient efforts by government to boost human capital. The study concluded that while human capital development is crucial for accelerated macroeconomic performance, government efforts aimed at boosting human capital has had a depressing effect on macroeconomic performance. On the strength of this, the study recommended that government and economic policy makers in Nigeria should place greater emphasis on human capital development.
If the inline PDF is not rendering correctly, you can download the PDF file here.
Adak, M. (2015). Technological progress, innovation and economic growth; the case of Turkey. Procedia – Social and Behavioural Sciences, 195, 776-782.
Adamu, P. A. (2003). The impact of human capital formation on economic development in Nigeria: An error correction approach. (pp. 55-78). Ibadan: Human Resource Development in Africa, Selected Papers for 2002 Annual Conference, Nigerian Economic Society.
Adawo, M. A. (2011). Has education (human capital) contributed to the economic growth of Nigeria? Journal of Economics and International, 3 (1), 46-58.
Ajide, B. K. (2014). Determinants of economic growth in Nigeria. CBN Journal of Applied Statistics, 5 (2), 147-170.
Akeju, K. F., & Olanipekun, D. B. (2014). Unemployment and economic growth in Nigeria. Journal of Economics and Sustainable Development, 5 (2), 138-144.
Ali, S., Alam, K. J., & Noor, M. T. (2006). An econometric analysis of human capital development and economic growth in Bangladesh. Journal of Economics and Sustainable Development, 7(17), 30-38.
Bhattacharjee, J., & Haldar, S. (2015). Economic growth of selected South Asian countires: does institution matter? Asian Economic and Financial Review, 5 (2), 356-370.
Caliskan, H. K. (2015). Technological change and economic growth. Procedia – Social and Behavioural sciences, 195, 649-654.
Dauda, R. O. (2010). Investment in education and economic growth in Nigeria: an empirical evidence. International Research Journal of Finance and Economics, 27 (2), 158-169.
Dauda, S. R. (2016). Poverty and Economic growth in Nigeria: Issues and policies. Journal of Poverty, 21 (1), 61-79.
Eigbiremolen, G. O., & 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.
Hanushek, E. A. (2013). Economic growth in developing countries: The role of human capital. Economics of Education Review, 37, 204-212.
Hanushek, E. A., & Woessmann, L. (2016). Knowledge capital, growth, and the East Asian Miracle. Science, 351 (6271), 344-345.
Ibok, E. F., & Ibanga, S. E. (2014). The impact of human capital development and economic development and economic development on socio-economic empowerment of Akwa Ibom State, Nigeria. Global Journal of Human Resources Management, 2 (3), 37-44.
Idenyi, S., Eze, O., & Onyeisi, S. (2016). Analysis of the relationship between human capital development and economic growth in Nigeria. European Journal of Accounting, Auditing and Finance Research, 4 (3), 56-71.
Isola, W. A., & Alani, R. A. (2012). Human capital development and economic growth: empirical evidence from Nigeria. Asian Economic and Financial Review, 2 (7), 813-827.
Jaiyeoba, S. V. (2015). Human capital investment and economic growth in Nigeria. African Research Review, 9 (1), 30-46.
Johnson, A. O. (2011). Human capital development and economic growth in Nigeria. European Journal of Business and Management, 3 (9), 29-38.
Lucas, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22 (1), 3-42.
Mankiw, N. G., Romer, P., & Weil, D. (1992). A contribution to the empirics of economic growth. uarterly Journal of Economics, 107 (2), 407-438.
Mohsen, M., & Maysan, M. (2013). The relationship between economic growth and human capital development in development countries. International Letters of Social and Humanistic Sciences, 5, 55-62.
Musibau, M., & Rasak, A. A. (2005). Long run relationship between education and economic growth in Nigeria: evidence from the Johannsen’s cointegration approach. Senegal: Paper presented at the Regional Conference on Education in West Africa, Cornell University.
Ogujiuba, K. (2013). The Impact of human capital formation on economic growth in Nigeria. Journal of Economics, Kamla-Raj, 121-132.