The impact of human capital development and economic growth in recent times emphasized the growth theory romer, 1986. Pdf the impact of human capital development on economic. It seeks to find out the impact of government recurrent and capital. Pdf human capital, technology, and economic growth. The result indicated that human capital development has a significant impact on nigerias economic growth. Investing in human capital for nigeria s future english abstract. This is also of importance for politicians when it comes to setting policies for an efficient labor market and for further economic growth. Hence human capital formation is undoubtedly the pivot for any meaningful programme of socioeconomic development of nigeria. The analysis discovered that there is a significant positive relationship between capital formation and economic. The impact of human resource development on economic growth.
It was set out to explore the relationship between human capital indices education and health and economic growth. The impact of human capital on earnings a study regarding. This paper examined the impact of human capital development on economic growth in nigeria using time series data spanning from 1980 to 20 which were sourced from the world bank indicator and national bureau of statistics. Economists have often neglected the impact of fundamental demographic processes on economic growth. Investing in human capital for nigerias future english.
The ordinary least squares ols, augmented dickeyfuller and johansen cointegration methods were used to estimate the model of one dependent variable poverty rate and four explanatory variables primary school enrolment, secondary school enrolment, tertiary. Impact of human capital development on economic growth in. This paper examined the impact of human capital development on economic growth in nigeria using time series data spanning from 1980 to 20 which were. Evidence from nigeria chindo sulaiman1,2, umar bala1,2, bulama abiso tijani1,3, salisu ibrahim waziri1,2, and ibrahim kabiru maji1,2 abstract this article investigated the impact of human capital and technology on economic growth in nigeria. The aim of this paper is to evaluate the impact of individual types of taxes on the economic growth by utilizing regression analysis on the oecd countries for the period of 20002011. Empirical analysis of human capital development and.
The impact of federal government expenditure on economic. The impact of human capital development on economic growth in. The nigerian economy remains dependent on the small oil sector under 10 percent of gdp for the bulk of its fiscal revenues and foreign exchange earnings. Government expenditure on human capital development. The impact of human capital development on economic growth of nigeria. In large measure the reason that human capital advances explain more economic growth in the twentieth century than the nineteenth century is because education advances were slower. Human capital formation and economic growth in nigeria eric.
The research analyses the role of human capital development on nigeria economic growth, the policies government has developed so far to improve human capital in nigeria, the reason why some failed and how all this play roles in driving the economic growth of the country. The impact of human capital on economic growth sciencedirect. Impact of human capital development on poverty reduction in. Investing in human capital for nigerias future 3 preface the nigeria biannual economic update is a product of the staff of the world bank and has three broad. Economists have been discussing various economic growth models due to their importance for the countries. Evidence from developmental economics 267 concept as traditionally defined to say that expenditures on education, training, and medical care, etc. The concept of human capital refers to the abilities and skills of human resources of a country, while human capital development refers to the process of acquiring and increasing the number of persons who have the skills, education and experience that are. This study examines the relationship between human capital development efforts of the government and economic growth in nigeria. However, life expectancy and primary school enrolment exhibit a negative and statistically insignificant impact on economic growth of nigeria. Human capital is a link which enters both the causes and effects of these economicdemographic changes.
Nigeria the human capital index hci database provides data at the country level for each of the components of the human capital index as well as for the overall index, disaggregated by gender. Impact of human capital development on economic growth. But under different conditions, similar rates of growth can have very different effects on poverty, the employment prospects of the poor and broader indicators of human development. Hence human capital formation is undoubtedly the pivot for any meaningful programme of socio economic development of nigeria. Mar 22, 2016 some studies identify factors that appear to limit the impact of economic growth on poverty reduction, including high initial income inequality, a reliance on nonlaborintensive sectors for growth, low human capital, low government expenditure on social services, and lack of openness to the world economy. Some studies identify factors that appear to limit the impact of economic growth on poverty reduction, including high initial income inequality, a reliance on nonlaborintensive sectors for growth, low human capital, low government expenditure. This paper examines the impact of human capital formation on the economic growth of nigeria from 19752008. The effect of human capital development on economic growth in nigeria an empirical analysis during 1970 2011 nigeria s overreaching objective since independence in 1960 has been to achieve stability, material prosperity, peace and social progress. Nigeria biannual economic update investing in human.
We employed annual time series data for the period of 35 years 19752010 and applied. The impact of human capital formation on economic growth. Findings also showed that investment in human capital in the form of education and capacity building at the primary and secondary levels impact significantly on economic growth, while capital. This notwithstanding, the impact on economic growth in nigeria has been a subject of debate. What is the role of human capital in economic development.
However, this study shall look at both the impact of human capital and health on economic growth in nigeria. The objective of this study is to critically evaluate the effect or impact of human capital development on economic growth in nigeria, using quarterly data. They used disaggregated analysis in an attempt to unravel the impact of government expenditure on economic growth. This implies that human capital development is indispensable in the achievement of sustainable economic growth in nigeria.
The impact of human capital on economic growth in nigeria, largest undergraduate projects repository, research works and materials. The impact of human capital development on economic growth in nigeria. A multivariate regression approach was employed to estimate augmented growth models. The ordinary least square multiple regression was used to estimate the necessary models. Human capital is a link which enters both the causes and effects of these economic demographic changes. In the past decades, much of the planning in nigeria was centered on the accumulation of physical capital for rapid growth and development, without due recognition of the important role of human capital in the development process. Ogujiuba 20 explored the impact of human capital formation on economic growth in nigeria from 1970 to 2010 using ols technique including cointegration and adf test to analyse the data. Impact of foreign direct investment and trade on economic growth. Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with agriculture being the lead sector. Fdi is an important vehicle of technology transfer from developed countries to developing countries. It has been confirmed that no country has achieved sustained economic development without substantial investment in human capital.
Download undergraduate projects topics and materials accounting, economics, education. This study examines the impact of human capital development on poverty reduction in nigerian economy from the period 1986 to 2012. Human capital development and its impact on firm performance. Unit root and grangercausality tests were carried out to make adequate allowance for the dynamic relationship, on stationary, and spurious regression problems. Climate change, human development and economic growth. The impact of human resource development on economic. The scope of this study cover a 17year period from 1999 2015 and this period is chosen because its mark the. Impact of capital formation on the economic development of. Empirical results show that human capita development, in line with theory, exhibits significant positive impact on output level. Empirical analysis of human capital development and economic. Ajide1 this paper investigates the role of frazer economic freedom index on fdi growth relationship over the period spanning 1980 through 2010 using annual time series data. Nigeria with the much needed capital for investment which improved economic growth. Indeed, spatial and temporal patterns of the demographic transition appear to be congruent with economic growth. Role of educational investment on economic growth and.
It was recommended that pro poor policies should be designed for. Their results reveal that government total capital expenditure, total. Increase in savings leads to increase in capital formation and production activities that will lead to employment creation and reduce external borrowing of government. More specifically, each of the various components of human development is likely to have a distinct impact on economic growth. This is called human capital, and to truly understand the world, we must understand the role that populations play in an economys growth or decline. They argue that it is possible that the interaction of economic growth with population dynamics can result in a poverty trap. Impact of human capital development on economic growth in nigeria. The impact of human capital formation on economic growth in. The analysis discovered that there is a significant positive relationship between capital formation and economic growth in nigeria both in the shortrun and longrun. This article investigated the impact of human capital and technology on economic growth in nigeria.
The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human. Findings also showed that investment in human capital in the form of education and capacity building at the primary and secondary levels impact significantly on economic growth, while capital expenditure on education was insignificant to the growth process. It seeks to find out the impact of government recurrent and capital expenditures on education and health in nigeria and their effect on economic growth. The effect of human capital development on economic growth. The most famous model is rostovian takeoff model, in other words rostows stages of growth. Determinants of economic growth in nigeria kazeem b. The index measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and poor. This study explores the relative impact of human capital formation on economic growth in nigeria from 1981 to 2014 using time series data of thirty four 34. Nigeria biannual economic update investing in human capital. Human capital development and economic growth in nigeria.
Federal government recurrent expenditure have no significant effect on economic growth in nigeria. The overall objective of the paper is to investigate the. Matters of economic of growth and decline hinge on the population. Section 3 and 4 present methodology and analysis of the data collected, while section 5 concludes the study. These are not simply costs but investment with valuable returns that can be calculated. Several studies have evolved to analyse the channels through which human capital can affect growth surveys include barro and salaimartin, 1995. Abu hassan shaari abstract there can be no significant economic growth in any country without adequate human capital development.
There can be no significant economic growth in any country without adequate human capital development. Bundell and others 1999 analyzing the impact of human capital on economic growth believe that the growth rate of output depends on the rate of accumulation of human capital and innovation, whose source is the stock of human capital, education level influence labor productivity. A multivariate regression approach was employed to. Pdf government expenditure on human capital development. Agricultural production and economic growth in nigeria. Impact of human capital development on economic growth of. This move could lead to a rise in cost of funds to. Pdf human capital development and economic growth in nigeria. Omotayo 2015 observed that an increase in the allocation to human capital will lead to an increase in gdp, showing a high significant and positive relationship between the investment in human capital and economic growth in nigeria. This paper examines specifically the impact of human capital development on longrun economic growth in nigeria, using time serial data for 27 year period. The empirical results show that education expenditure per worker has a positive and significant impact on economic growth. Jan 15, 2011 human capital formation involves investment in education, training, health and other social services that will enhance the productive capacity of labour. This study examined and analyzed the impact of human capital development on economic growth in nigeria, using time series data of 32 years spanning 1980 to 2012, data utilized for the study were extracted from secondary sources i. Human capital formation involves investment in education, training, health and other social services that will enhance the productive capacity of labour.
Impact of capital market volatility on economic growth in. Strong economic growth therefore advances human development, which, in turn, promotes economic growth. Ajide1 this paper investigates the role of frazer economic freedom index on fdigrowth relationship over the period spanning 1980 through 2010 using annual time series data. The paper builds upon and extends the analysis presented in the two previous cedefop reports edited by tessaring 1998 and descy and tessaring 2001. Impact of capital market volatility on economic growth in nigeria 1985 2016 doi. This is because it focuses on evaluating the impact of federal government expenditure on economic growth in nigeria. Macroeconomic determinants of economic growth in nigeria. Impact of foreign direct investment and trade on economic growth foreign direct investment fdi and trade are often seen as important catalysts for economic growth in the developing countries. Bloom and canning 2001 are among the few who explore the effect of the demographic transition on economic growth. Investing in human capital for nigerias future english abstract. Contrary to malthus, economic growth has not been eliminated by population growth.
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