Econometrics Analysis of the Effect of Human Capital Development on Economic Growth in Nigeria

Abstract

Despite arrays of empirical literatures on the impact human capital development has on the economic growth the debates is inconclusive with mixed outcome. Thus, the main objective of this study is to empirically examine the impact of human capital development on economic growth in Nigeria between the periods of 1999 and 2022. To achieve this said objective; time series secondary data was sourced from Central Bank of Nigeria Statistical Bulletin, 2022. Thereafter, Autoregressive Distributed Lag Regression Estimate (ARDL) analysis was conducted with the aid of E-view 10. Findings of this study reveals as follows; that government expenditure on education have positive and statistically significant impact on RGDP. Equally, government expenditure on health have statistically significant impact on RGDP. More so, life span have positive and statistically insignificant impact on RGDP. Again, total school enrollments (SER) have positive and statistically insignificant impact on RGDP. Lastly, this study find out that human capital development has statistically significant short run and long run relationship with economic growth in Nigeria between 1999 and 2022. Therefore, the following recommendations are suggested: first, that Nigeria government at all levels should ensure that priority should be placed on all the components or indicators of human capital development of the Nigerian citizens. Second, government effort toward increase government expenditure on education should be sustaining. Third, governments at all levels should increase the funding for health sector in order to ensure the citizens live healthy so as to be able to increase their productivity and afterward, contributes to economic growth. Fourth, governments’ efforts should be directed to wellbeing of her citizen in order to pro-long the life span Five, governments at all levels should formulate appropriate policy that will ensure that school enrollments should be at upward trend.