Human capital investment and economic development: The Nigerian experience

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Shobande, T. A.
Odeleye, A.T.
Olunkwa, N. C.
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World Journal of Social Sciences
The study examined the impact of human capital investment on economic development of Nigeria. The Solow augmented model developed by Mankiw, Romer, and Weil (1992) which incorporated the role of human capital as a yardstick for economic development was adapted to investigate the link between human capital investment and economic development in Nigeria.. Annual time series data sourced from the Central Bank of Nigeria’s Statistical Bulletin between 1970 to 2011.Ordinary least square method (OLS), Augmented dickey fuller test (ADF), Johansen co-integration, Error correction model (ECM) were employed as estimation techniques. Pre-estimation findings showed that all variables are non-mean reverting at level and do not converge to their long run equilibrium until they were at first differenced. The empirical finding indicated that there was a negative short run relationship between economic development and human capital investment in Nigeria. It is recommended that Nigeria should consider education beyond secondary school enrollment, if investment in human capital is to produce meaningful macroeconomic changes.
Scholarly article
Shobande, T. A., Odeleye, A. T., & Olunkwa, N. C. (2014). Human capital investment and economic development: The Nigerian experience. World Journal of Social Sciences, 1(2), 107-115.