Abstract
This study investigated the effect of human capital investment on economic growth in Nigeria within the periods 1981-2019. Time series data covering these periods of study were obtained and analyzed using Ordinary Least Square method. The data were further subjected to unit root test using the Augmented Dickey-Fuller (ADF) test, and a test of co-integration was performed using Johansen rank based test. The result of the ADF test showed that the variables were all integrated at order one, and the Johansen co-integration test confirmed the existence of at least a co-integrating equation. The researchers went further in estimation an Error Correction Model (ECM) aimed at reconciling the short run deviations from the long run equilibrium. The test results showed that capital and recurrent expenditures on education and health have not impacted significantly on the growth of the Nigerian economy both in the short run as well as the long run periods. Recommendations proffered include; government should intensify investments in education and health sectors in Nigeria to improve quality of services; government should embark on a general upgrade of the health sector in Nigeria as well as provision of adequate educational facilities in public schools. DOI: 10.7176/JESD/11-18-05 Publication date: September 30 th 2020
Highlights
1.1 Background to the Study The concept of human capital is one of the popular phenomenon’s which have transcended the area of economic thought
The country finds itself under a gapping incidence of poverty which is estimated to be rising at an average of 10% in the last eight years, while access to social services continued to deteriorate with an uncontrollable rise in the cost of living, resulting from a high inflation rate lingered by macro-economic disequilibrium (Ogujiuba and Adeniyi, 2005)
Arabi and Abdalla, (2013) posits that the need to improve on the quality of education and public health care system in Nigeria is becoming increasingly important since this has a direct influence on the desired economic growth
Summary
1.1 Background to the Study The concept of human capital is one of the popular phenomenon’s which have transcended the area of economic thought. While formal education constitutes the primary form of human capital, other secondary elements may include direct and indirect costs of health, on the job training, apprenticeship programs, and the search for relevant information, all of which are capable of improving on a nation’s level of productivity and her economic growth (Todaro & Smith, 2009). Arabi and Abdalla, (2013) posits that the need to improve on the quality of education and public health care system in Nigeria is becoming increasingly important since this has a direct influence on the desired economic growth.
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