ANALYSIS OF HUMAN CAPITAL FORMATION AND ECONOMIC DEVELOPMENT IN NIGERIA (1981-2015) (ECONOMICS PROJECT TOPICS AND MATERIALS)
ABSTRACT
This research work tries to investigate the analysis of human capital formation and economic development in Nigeria between 1981 to 2015. Major issues such as human capital formation and economic development, human capital formulated efforts in Nigeria, strategies for human capital development; problems of human capital formation in Nigeria as well as theoretical framework were ascertained. The neo-classical mode and multiple regression using ordinary least square (OLS) to analyze the relationship between the dependent and independent variables using GDPPC (gross domestic product per capital) as a proxy for economic growth and development was conducted. The result shows that there is positive relationship between government expenditure on education and health while that of government expenditure on economic and social services is estimated to have a negative relationship. Finally, the policy recommendation arising from the study shows if government wants to increase the level of economic growth in Nigeria, then it should invest more on human capital and also roll out programmes that will encourage human capital development. One way this can be done is to increase the funding of the education sector in Nigeria as empirical findings from our study provided evidence that it has a positive significant relationship with economic growth in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
In the past, emphasis had been placed on the accumulation of physical or material capital to the detriment of human capital in Nigeria’s quest for rapid economic development ignoring the fact that the major source of per capital output in any country; whether developing or developed with a market economy or centrally planned is an increase in productivity per capital output growth is however an important component of economic development or welfare. (Abramowitz, 1981).
From studies, it has been revealed that human beings are the most important and promising source of growth in productivity and economic growth and development. Equipment and technology are products of human minds and can only be made productive by people. The success of any productive program depends on human innovative ideas and creativity. Human capital development according to Harbison and Myer (1964) is the process of increasing the knowledge, the skills and the capabilities of people in the society. Economists have recognized the centrality of the stock and rate of accumulation of human capital in the process of development. The crucial link between both processes has been aptly summarized by Kennedy (2004) as follows, manpower is the basic resources, and it is the indispensable means of converting other resources to mankind’s uses and benefit. How well we develop and employ will determine how much we will accomplish as a nation. The stock of human capital like the stock of natural and physical increase will deteriorate and decay if not increased and maintained through public health sanitation, social welfare service, nutrition and guaranteed employment schemes. Therefore these relevant human capital formation indices should be integrated into the national development planning process in other to achieve sustainable growth and development.
