Human Capital Investment and Economic Development in Nigeria: a Focus on Education and Health
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University of Lagos Press
This study examined the relationship between education and health expenditure on economic growth in Nigeria. The study employed the human capital theory, which places emphasis on human capital formation and its effect on economic growth. The data used for the study were from secondary sources. The dependent variable was gross domestic product per capita, while the explanatory variables were government capital and recurrent expenditures on education and health, primary enrolment rate, secondary enrolment rate, tertiary enrolment rate, gross fixed capital formation and the labour force. Augmented Dickey-Fuller (ADF) test was used to determine the order of integration of the variables. Cointegration and Error Correction Model (ECM) techniques of analyses were used. The result showed that there exists a positive relationship between government recurrent expenditure on human capital development and the level of real output, while capital expenditure was negatively correlated to the Level of real output. The study recommended appropriate channelling of the nation IS capital expenditure on education and health to promote economic growth.
Human capital investment , Economic development , Education , Economic Growth
Lawanson, O.I (2017) Human Capital Investment and Economic Development in Nigeria: a Focus on Education and Health. Journal of Economics and Policy Analysis, Vol.2(1) pp. 95-112