Impact of Human Capital, Diversification and Long-term Growth in Nigeria: 1980-2016
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Unilag Journal of Business
This study examined the relationship between human capital, diversification and long-term growth in Nigeria between 1980 and 2016. In the study, variables such as the real gross domestic product, exchange rate, physical capital, human capital, agriculture, manufacturing, and service, were employed. The ordinary least squares technique was employed as the econometric method of estimation while other residual diagnostics tests were conducted to ascertain the suitability of the estimated model. In the results presented, it was observed that all the variables were stationary at first difference and that long run relationship exists among the variables going by the .lohansen co-integration results presented. The findings show that physical and human capital, agriculture, manufacturing and services have a positive impact on the real GDP in Nigeria. However, the exchange rate had a negative impact on the real gross domestic product in Nigeria. It was therefore recommended that since agriculture was found to have positive and significant impact on long-term growth, commercial banks should be made to make available at least 2% of their annual profits for the development of the agricultural sector and that government should put in place policies aimed at maximally utilising national earnings for the creation of enabling environment for industrial survival to boost manufacturing output in Nigeria.
Human Capital , Diversification , Long-term Growth , Econmic Growth
Lawanson, O.I and Amadi, A.N (2018) Impact of Human Capital, Diversification and Long-term Growth in Nigeria: 1980-2016. Unilag Journal of Business, Vol. 4(1), pp. 83-96