Abstract
This study examines the relationship between technology, human capital and economic growth and also attempts to establish their implications on knowledge based economy in Nigeria. The data used for the study are from secondary sources while the new growth model was also adopted. The dependent variable in the model is the level of real output while the explanatory variables are gross capital formation and government expenditure on education. The result of the causality test shows that is a uni-directional relationship running from gross capital formation and real output, human capital formation and real output growths do not Granger cause each other while causality runs from human capital to capital formation and vice versa. The implication of the result; the increase in economic growth has not improve the rate of capital formation in Nigeria. The study concluded that Nigeria has been slow to identify the strands of global knowledge due to the following: weak institutions; limited awareness and disincentives preventing them from taking the root to the knowledge and information based- economy. Based on the findings the study recommended; strategies in which education can be incorporated into the growth system. Research and development should be encouraged as well and polices that promote output through savings.
Highlights
The development of human capital involves increasing skills, knowledge, specialization productivity and creativity of people through process of human capital formation
The question is what is the direction of human capital formation, technology and economic growth in Nigeria and what implication(s) does it have in transforming the country to information and knowledge based economy? In attempting to answer these questions, scholars in Nigeria had focused more on the relationship between education and health, education and economic growth and so on For example, Adelowokan (2012) examines growth effect on education and health expenditure using a static regression model; the author’s finding shows that there is a long-relationship between human capital spending and economic growth using Engle-Granger two-step co-integration procedure
The results showed that α12 ≠ 0 but α21 = 0, that is there is a uni-directional relationship running from LGFCFg to LRGDPg; this implies that gross capital formation Granger causes real output and the reverse does not ensue
Summary
The development of human capital involves increasing skills, knowledge, specialization productivity and creativity of people through process of human capital formation. The neo-classical production function shows the relationship between growth and technology In this function, human capital is included which capture the effect of knowledge and information based. Despite the importance of human capital and technology to promote growth by the Nigerian government, the income per capita is still low and its transmission to knowledge based and information economy still remain empirical findings. The question is what is the direction of human capital formation, technology and economic growth in Nigeria and what implication(s) does it have in transforming the country to information and knowledge based economy? This work is distinguished from others by examining the relationship between technology, human capital and economic growth and attempts to establish their implications on knowledge and information based economy in Nigeria.
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