ABSTRACT

The study examines the effect of human capital development on economic growth in Nigeria using data from the Central Bank of Nigeria covering the period from 1981 to 2023. By applying a non-linear Autoregressive Distributed Lag (NARDL) model to capture the variables' behavioral patterns, the findings highlight several key points. Firstly, reduced government spending on education is negatively correlated with economic growth, while government expenditure on health shows a positive but insignificant impact. Additionally, a decline in infant mortality rate significantly enhances economic growth. In the short term, a decrease in life expectancy negatively and significantly affects economic growth; however, in the long term, an increase in life expectancy has a positive but insignificant effect. Furthermore, a rise in per capita income significantly promotes long-term economic growth. The study recommends prioritizing maternal and child health initiatives to improve healthcare for pregnant women and infants, alongside policies aimed at sustained increases in per capita income, including strategies to boost employment and entrepreneurship. These measures are essential for fostering sustainable economic growth in Nigeria.

Keywords:

Human Capital Development, Economic Growth

References:

1) Adawo, M. A. (2011). Has education contributed to economic growth in Nigeria? Journal of Economics & International Finance, 3(1), 46-58.

2) Adelakun, O. J. (2011). Human capital development and economic growth in Nigeria. European Journal of Business and Management, 3(9), 29-37.

3) Adeyemi, P. A., & Ogunsola, A. J. (2016). The impact of human capital development on economic growth in Nigeria: ARDL approach. IOSR Journal of Humanities and Social Science (IOSR-JHSS), 21(3), 1-7.

4) Akaakohol, B. M., & Ijirshar, V. U. (2018). Human capital development and economic growth in Nigeria. Lafia Journal of Economics and Management Sciences, 3(1), 95-116.

5) Atika, T., & Alisjahbana, A. (2002). Regional income inequality in Indonesia and the initial impact of the economic crisis. Bulletin of Indonesian Economic Studies.

6) Benhabib, J., & Spiegel, M. (1994). The role of human capital in economic development: Evidence from aggregate cross-country data. Journal of Monetary Economics, 34, 143-173.

7) Brita, B., & Taran, F. (2021). The role of human capital in structural change and growth in an open economy: Innovative and absorptive capacity effects. Brita Bye, Research Department, Statistics Norway, 0131 Oslo, Norway.

8) Chaku, S. E., Timnan, B. N., Azi, I. M., Manomi, J. N., Ajang, J. D., & Diemsan, A. A. (2023). Time series analysis of human capital development and economic performance: Recent evidence from Nigeria. International Journal of Multidisciplinary Research and Analysis, 6(5), 1834-1840.

9) Euphemia, L. B. I. (2022). Human capital development and economic growth in Nigeria. Asian Journal of Economics, Finance and Management, 8(1), 1-11.

10) Harbison, F. H. (1973). Human resources as the wealth of nations. Oxford University Press.

11) Isola, W. A., & Alani, R. A. (2018). Human capital development and economic growth: Empirical evidence from Nigeria. Asian Economic and Financial Review, 2(7), 813-827.

12) Jimenez, E., Nguyen, V. T., & Patrinos, H. A. (2012). Human capital development and economic growth in Malaysia and Thailand: Stuck in the middle? In The World Bank Human Development Network Education Unit (Issue November). Available at: https://doi.org/10.4324/9780203778739

13) Kairo, C. I., Mang, N. J., Okeke, A., & Aondo, D. C. (2017). Government expenditure and human capital development in Nigeria: An autoregressive distributed lagged model approach (ARDL). International Journal of Advanced Studies in Economics and Public Sector Management, 5(1), 143-158.

14) Kessier, J. (2012). Economic growth. Business and Public Policy, The Wharton High School.

15) Mansur, K., Abd-Rahim, D. A., Lim, B., & Mahmund, R. (2009). Perception to the importance of education among Muslim women in Papar, Sabah, Malaysia. MPRA Paper No.13430.

16) Mba, I. C., Mba, E. I., Ogbuabor, J. E., & Ikpegbu, C. H. (2013). Human capital development and economic growth in Nigeria. International Journal of Economics Development Research (IJEDR), 4(18), 142-155. Available at: https://doi.org/10.37385/ijedr.v2i2.259

17) Maku, O. E., Ajike, E. O., & Chinedu, S. C. (2019). Human capital development and macroeconomic performance in Nigeria: An autoregressive distributed lag (ARDL) approach. Etikonomi: Jurnal Ekonomi, 18(2), 185-196.

18) Michele, A. N. P., Edinaldo, T., & Marina, S. C. (2021). The role of human capital in the structural change process. Economics Faculty Journal Articles. Paper 55.

19) Ogungbenle, S. K., & Edogiawerie, M. N. (2016). Budgetary allocation and development in Nigeria tertiary institutions. Igbinedion University Journal of Accounting, 2, 377-407.

20) Ogunleye, O. O., Sanyaolu, O. A., & Lawal, O. O. (2017). Human capital development and economic growth in Nigeria. IJRDO – Journal of Business Management, 3(8), 17-37.

21) Okafor, S. O., Jegbefomuwen, K., & Ike, A. N. (2016). Human capital investment for inclusive and sustainable economic development: The Nigerian experience. British Journal of Economics, Finance and Management Sciences, 11(1).

22) Oluwatobi, S. O., & Ogunrinola, O. I. (2011). Government expenditure on human capital development: Implications for economic growth in Nigeria. Journal of Sustainable Development, 4(3), 72-80.

23) Olufunnso, O. O., Owolabi, A. U., & Adebayo, M. (2023). Human capital development and economic growth in Nigeria: A structural break perspective. International Journal of Finance Research, 4(2).

24) Oyinlola, O. O., & Adam, J. A. (2003). Public expenditure and human development in Nigeria. In Human Resource Development in Africa: Selected Papers for 2002 NES Annual Conference (pp. 53-78).

25) Prodi, E. S. (2019). The contribution of human capital and structural change to East Java’s economic growth: Does the structural change better than human capital? East Java Economic Journal, 3(2), 168-180.

26) Ramirez, A., Ranis, G., & Stewart, F. (1997). Economic growth and human development. Center Discussion Paper No. 787.

27) Todaro, M. P. (1980). Economics for a developing world. London Group Ltd.

28) Wilson, G. (2017). Development economics: A concise text. Pearl Publishers.

29) Wibisono, Y. (2001). Determinants of economic growth: Empirical evidence from Indonesia. Economic Journal of Indonesia.

30) Zhang, C., & Zhuang, L. (2021). The composition of human capital and economic growth: Evidence from China using dynamic panel data analysis. China Economic Review, 22(1), 165-175.