Human Capital Development and Economic Growth in Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VI, Issue VII, July 2019 | ISSN 2321–2705

Human Capital Development and Economic Growth in Nigeria

Babatunde O. Binuyo¹, Feyisayo, O. Ogunrinde² and Adekunle, O. Binuyo³

^1&2Economics Department, Veronica Adeleke School of Social Sciences, Babcock University, Ilishan-Remo Ogun State, Nigeria
³Department of Business Administration & Marketing, School of Management Sciences, Babcock University, Ilishan-Remo, Ogun State, Nigeria

Abstract: – This study investigated the impact of human capital development on economic growth in in Nigeria from 1988 to 2017. Secondary data sourced from Central Bank of Nigeria Statistical Bulleting covering a scope of 30 years (1980-2017) were used and the Ordinary Least Square Technique was used to analyse the data for purposes of testing the hypothesis. The study adopted real gross domestic product as the dependent variable while recurrent expenditure on health and recurrent expenditure on education were the independent variables.
The Augmented Dickey-fuller and Phillips-Perron unit root tests were adopted to obtain the stationarity of the variables and the results showed all the variables were stationary at first difference.
In conclusion, the study showed that recurrent expenditure on health had a positive effect on economic growth while recurrent expenditure on education had a positive relationship on economic growth in Nigeria.
The study therefore recommends that policy makers should strive to create institutional framework that increases school enrolment and improves basic healthcare services by strengthening the infrastructure of educational and health institutions that produce quality manpower.

Keywords: Economic Growth, Economy, Human Capital Development, Real Gross Domestic Product and Recurrent Expenditure

I. INTRODUCTION

The quality and composition of human resources available to a nation is crucial in its plans for economic growth and development. Human beings now have a greater role to play in development of their communities because of their creative abilities. All existing technologies, innovations and inventions were birthed by the ideas of people. The contemporary age requires creative thinking and innovation to drive development and this can only be done by humans.
The development and progression of human capital has been a major focus for modern economists and policy makers due to the fact that human beings drive productive activities in an economy and the human factor can be found in both labor and entrepreneurial factors of production. The reality is that no country can achieve sustainable economic growth and or development without developing and investing in its human capital.

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