HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

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HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

TABLE OF CONTENT
Title Page i
Cover page ii
Declaration iii
Dedication iv
Certification v
Acknowledgement vi
Table of Content vii
Abstract x
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Hypothesis 5
1.6 Significance of the Study 5
1.7 Scope/Limitations of the Study 6
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction 7
2.1.1 Theoretical Framework 7
2.2.1 Human Capital Theory 7
2.2 Conceptual Framework 9
2.2.1 Concept of Human Capital 9
2.2.2 Economic Growth 11
2.2.3 Human Capital Development and Economic Growth 12
2.3 Empirical Review of Literature 14
2.4 Summary of Literature Review 18
CHAPTER THREE: METHODOLOGY
3.1 Introduction 19
3.2 The Research Design 19
3.3 Population and Sample Size of the Study 19
3.4 Source of Data 20
3.5 Model Specification and Data Analysis Method 20
CHAPTER FOUR: DATA ANALYSIS
4.1 Introduction 22
4.2 Descriptive Analysis of Variables 22
4.3 Empirical Results 23
4.4 Research Hypothesis 23
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Introduction 28
5.2 Summary of Findings 28
5.3 Conclusion 30
5.4 Recommendation 30
REFERENCES 31
APPENDIX 35

ABSTRACT

This study examined and analyzed the impact of human capital development on economic growth in Nigeria, using time series data of 24 years spanning 1994 to 2018, data utilized for the study were extracted from secondary sources i.e. journals and publications, CBN and NBS. Human capital has been identified as the best indigenous choice available for economic growth. Over the years, government has made budgetary allocations in key human capital development sector of education, health and other forms of human resource areas with a view to accelerating economic growth. Noticeably, human capital has not been significantly impacting on economic growth. The study employed the descriptive research design in estimating the parameter of the model. The result of the analysis showed that there was a positive relationship between the independent variable, primary school enrollment (PSE), public expenditure on education (PEE), public expenditure on health (PEH), life expectancy (LE), stock of physical capital (K) and the dependent variable, per capital Real Gross Domestic Product.(RGDP). Government and policy maker should be made effort in building and developing human capacity through adequate educational funding across all levels since it remains the major way of attaining sustainable economic growth and development.


CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
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 critical for economic growth and development of a country’s economy (Okojie, 2005). Also, Ejere (2011) posited that human capital refers to the human factor in the production process; and consists of the combined knowledge, skills or competencies and abilities of the workforce. Of all factors of production, only human beings are capable of learning, adapting or changing, innovative and creative. Human capital development, following Harbison (1973), can be seen as the deliberate and continuous process of acquiring requisite knowledge, skills and experiences that are applied to produce economic value for driving sustainable national development. The significance and relevance of human capital development in the achievement of meaningful and sustainable economic growth and development have been widely acknowledged in various studies. In the absence of substantial investment in the development of human capital in any country, sustained economic growth and development would only be a mere wish, never a reality. Therefore, the place of human capital development in economic growth cannot be overemphasized. Human capital development is a key prerequisite for a country’s socio-economic and political transformation. Among the generally agreed causal factors responsible for the impressive performance of the economy of most of the developed and the newly industrializing countries is an impressive commitment to human capital development (Adedeji and Bamidele, 2003; World Bank, 1995, Barro, 1991).
Furthermore, It has been stressed that the differences in the level of socio-economic development across nations is attributed not so much to natural resources and endowments and the stock of physical capital but to the quality and quantity of human resources (Dauda, 2010). Oladeji and Adebayo (1996) opined that human resources are a critical variable in the growth process and worthy of development. They are not only means but, more importantly, the ends that must be served to achieve economic progress. In addition, the wealth and prosperity of nations rest ultimately upon the development of people and the effective commitment of their energies and talents. Capital and natural resources are passive agents. The active agents of modernization are human beings, for they alone can accumulate capital, exploit natural resources and build political and social organizations (Sankay, Ismail and Shaari, 2010). Harbinson (1973) aptly summarized the importance of human capital to economic and development by stating that “human resources constitute the ultimate basis for the wealth of nations. Capital and natural resources are passive factors of production; human beings are the active agents who accumulate capital, exploit natural resources, build social, economic, and political organizations, and carry forward national development. Clearly a country which is unable to develop the skills and knowledge of its people and to utilize them effectively in the national economy will be unable to develop anything else”.

HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA

HUMAN CAPITAL DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA