Growth implications of human capital investment on the Nigerian economy: an empirical study

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Date
2019
Authors
Lawanson, O.I.
Aribisala, S.E.
Journal Title
Journal ISSN
Volume Title
Publisher
University of Lagos Press and Bookshop
Abstract
This paper investigated the growth implications of human capital investment on the Nigerian economy between the period of 1974 and 2014. Various studies have been conducted but literatures in this regard still have the mixed bag of results. Thus, there is high motivation to pursue this study so as to fill the gap. The broad objective of this study is to analyse the growth implications of human capital investment on the Nigerian economy. The study adopted Unit Root Test, Cointegration Technique and Granger Causality Test. as analytical tools, with the growth rate of gross domestic product (GDP) as the dependent variable and the Investment-GDP Ratio, Share of Education and Health in the total budget as the independent variables. The empirical findings indicate that human capital investment has a positive and significant effect on economic growth in Nigeria. The result also revealed that a bidirectional relationship exists among the variables employed. This therefore confirms that human capital investment remains the stronghold of any meaningful development programme embarked upon by any nation because it considers all facets of the development process. Thus, the study suggests the importance, as well as the imperative for Nigeria to embark on comprehensive policies to enhance an improved human capital investment and that government at all levels should make conscious effort to plan with the knowledge that people should be put at the centre of development by empowering them, with a view to improving their quality of life in order to accelerate and sustain economic performance in general.
Description
Staff publications
Keywords
Human capital investment , Economic growth , Cointegration technique , Granger casuality test , Research Subject Categories::SOCIAL SCIENCES::Business and economics::Economics
Citation
Lawanson, O.I. and Aribisala, S.E (2019). Growth implications of human capital investment on the Nigerian economy: an empirical study. Economics of human resource: issues, challenges and opportunities.