Human Capital Development, Infrastructural Development And Industrial Sector Productivity In Nigeria

Oluwafemi S Enilolobo ,Olamide Sodeinde

doi:10.14738/abr.11.5917

Abstract

This study examines relationship between human capital development, infrastructural development and industrial sector in Nigeria for the period 1991 through 2014. The objective of the study is to identify some critical economic and social factors that influence industrial sector productivity in Nigeria. To ascertain the relationship between our variables of studies, secondary source of data was employed and extracted from World Development Indicators. Using an Ordinary Least square (OLS) estimation technique, the study established that human capital development has positive and significant effect on industrial sector productivity while infrastructural development has positive but insignificant effect on industrial sector productivity in Nigeria. Thus, the study recommends effective negotiation of debt relief from Paris club and other foreign debt to enable the government have excess funds to invest on pro-poor intervention project, transparency in governance and implementation of fiscal budget with post evaluation.

Highlights

A developmental focused economy must upgrade its infrastructure and concurrently improve the quality of human capital if it is to achieve sustainable economic growth through improved productivity of industrial sector; this is contained in the report of Asian development Bank (ADB) on the country’s growth prospects
This study examined relationship that exists in human capital development, infrastructure and industrial sector productivity in Nigeria
We further analysed that human capital development variables include access to education, access to clean water and improved sanitization facilities while infrastructure is measured by electricity production from hydroelectric source

Summary

Introduction

A developmental focused economy must upgrade its infrastructure and concurrently improve the quality of human capital if it is to achieve sustainable economic growth through improved productivity of industrial sector; this is contained in the report of Asian development Bank (ADB) on the country’s growth prospects. Economist Theodore Schultz invented the term (human capital) in the 1960s to reflect the value of our human capacities. He believed human capital was like any other type of capital; it could be invested in through education, training and enhanced benefits that will lead to an improvement in the quality and level of production. According to Todaro and Smith (2011), human capital is productive investments embodied in human persons, including skills, abilities, ideals, health, and locations, often resulting from expenditures on education, on-the-job training programs and medical care. International policies often address human capital flight, which is the loss of talented or trained persons from a country that invested in them, to another country which benefits from their arrival without investing in them

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