HUMAN CAPITAL INVESTMENT AND ECONOMIC DEVELOPMENT IN NIGERIA
Abstract
This study examined Human Capital Investment and Economic Development in Nigeria. Human Capital Investment was proxied by public education capital expenditure, public education recurrent expenditure, public health capital expenditure, public health recurrent expenditure and tertiary education enrolment, while economic development was measured with real gross domestic product, human development index and national poverty index. Hypotheses that guided the study were formulated in line with the study objectives and relevant literature were reviewed and evaluated. Relevant data were extracted from the annual Statistical Bulletin of the Central Bank of Nigeria and the National Bureau of Statistics. Unit root test was conducted using Augmented Dickey Fuller method which revealed that the variables were integrated at level and first difference necessitating the use of autoregressive distributive lag/bond test to explore the long run relationship existing among the variables in each model and the result showed that the variables in each model were co-integrated thus we proceeded in evaluating the long run as well as the co-integrating form in each model. From the result of the various tests, it was revealed that while some of the outcomes conformed to apriori expectations, others did not conform to apriori expectations. Based on the findings from the analysis, the study recommended amongst others, the government of Nigeria should intensify her investments in the areas of education and health so as to improve on the quality of education and health care facilities and as such, the quality of the human resources that could be instrumental to an improvement on the real gross domestic product of Nigeria and the achievement of desired economic growth and development. Proper accounting and blocking of leakages will go a long way in improving the economy and also, it is important that the government pay more attention to the development and standardization of tertiary institutions in Nigeria, especially those within the public domain as the quality of output that comes out of there institutions have the potentials to improve on the human development index of the nation and consequently, bring about economic development in Nigeria.
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