Nigeria biannual economic update investing in human. 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. There can be no significant economic growth in any country without adequate human capital development. Infrastructural development and economic growth in nigeria. Financial system strategy 2020 central bank of nigeria. In the absenteeism of sizeable investment in the development of human capital in any country, sustained economic growth and development is only be a mere. Introduction health and education are both components of human capital and contributors to human welfare. Development planning in nigeria has suffered from lack of coordination and harmonization of programmespolicies both within the tenure of an administration and those succeeding it. 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. This paper confirms earlier position that higher education is a sinequanon for human capital development and economic growth. The crucial question that agitates the mind of any critical scholar is does federal expenditure on education, particularly nomadic education contribute to growth of nigerian economy. Human capital development has been identified as bedrock of any nations economic development. Pdf this study employs the ordinary least square regression analysis to examine the impact of human capital development on economic. The fss 2020 human capital development strategy provides a.
Impact of human capital development on poverty reduction. Human capital and economic growth have a strong correlation. This study was therefore carried out with the view to testing the effect of human capital development on economic growth in nigeria. By human capital we mean the knowledge and skills people possess that enable them to create value in the global economic system. Sankay, ismail and shaari 2010 investigated the impact of human capital development on economic growth in nigeria during the period 1970 to 2008. Financial system strategy 2020 nigerias global competitiveness on higher education. 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. In order to achieve this, data were sourced from the cbn statistical bulletin and federal ministry of education publication during 1970 2011. It was set out to explore the relationship between human capital indices education and health and economic growth. With a population bigger than any other continents, africa has a huge asset and a strong competitive advantage. The importance of human capital formation concept on economic growth cannot be over emphasized and have been the fulcrum of aid and assistance by international agencies and developed countries. 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 employs the ordinary least square regression analysis to examine the impact of human capital development on economic growth of nigeria, using annual time series date from 1981 to 2015. The ordinary least square multiple regression was used to estimate the necessary models. Specifically, firms must invest necessary resources in developing human capital which tend to have a great impact on performance. This paper examines specifically the impact of human capital development on longrun economic growth in nigeria, using time serial data for 27 year period. Human capital, economic growth and welfare are closely interrelated. To identify the relationship between human capital development and poverty reduction in nigeria discuss how human resource development through education can be made. The provision and development of infrastructures have been the subject of much theoretical analysis and empirical studies.
This study evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. The role of higher education in human capital development. The data used in this study was derived from secondary data only. Welcome to the human capital project hcp, a global effort to accelerate more and better investments in people for greater equity and economic growth. Pdf human capital investment and economic growth in nigeria. Investing in human capital for nigerias future english abstract.
Labor studies program individuals differ in both inherited and acquired abilities, but only the latter differ among countries and time periods. Climate change, human development and economic growth. This article will help you understand how human capital reshapes an economy. Pdf the impact of human capital development on economic. The paper recommended continual intervention of the governments and international development agencies on formulating policies that will minimize the enormous constraints to human capital development and enhance economic growth in nigeria.
What is the relationship between human capital and. The impact of human capital formation on economic growth. Abu hassan shaari abstract there can be no significant economic growth in any. In order to justify further the critical importance given to the development of human capital in nigeria, the main objective of this study is to test and find out the impact of human capital development on the economic growth of nigeria.
Thus human capital development is one of the fundamental solutions to enter the international arena. Thus, the country needs to take concrete steps to break its oil dependency to improve its economic and social outcomes. 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. However, the illiteracy rate in nigeria is high and many workers are unskilled, leading to their low productivity. With the current covid19 pandemic, its even more important to understand why countries should invest in human capital hc and protect hardwon gains from being eroded. This study employs the ordinary least square regression analysis to examine the impact of human capital development on economic growth of nigeria. 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. 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. Crosscountry regressions show a significant relationship in both directions, with public expenditures on. Economic growth, human capital, education, health and gross fixed. Human development report 2019 inequalities in human development in the 21st century briefing note for countries on the 2019 human development report nigeria introduction the main premise of the human development approach is that expanding peoples freedoms is both the main aim of, and the principal means for sustainable development. More specifically, each of the various components of human development is likely to have a distinct impact on economic growth. The paper builds upon and extends the analysis presented in the two previous cedefop reports edited by tessaring 1998 and descy and tessaring 2001. Agricultural production and economic growth in nigeria.
Human capital and economic development simon appleton and francis teal 1. The impact of human capital development on economic growth in nigeria. This study examines the impact of human capital development on poverty reduction in nigerian economy from the period 1986 to 2012. While africas level of human development is lower than that of south asia, its per capita income is. In this study, the ordinary least square ols technique was adopted. The results further reveal a relatively inelastic relationship between human capital development and output level. This study in line with has tried to evaluate infrastructural development and economic growth of nigeria, using simultaneous analysis.
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. Human capital formation and economic growth in nigeria eric. Human capital refers to the abilities and skills of human resources and human capital development refers to the process of acquiring and increasing the number of. Therefore, this study intends to investigate the impact of human capital development on economic growth in nigeria. Matters of economic of growth and decline hinge on the population.
Impact of human capital development on economic growth in. Economists observed that the development and utilization of human capital is important in a nations economic growth. The african development banks human capital strategy aims to harness the potential of 1 billion africans through skills development and investments in new technologies to promote quality jobs and workforce competitiveness. However, the paper posits that the form of education that will translate to economic growth, especially, in nigeria must place emphasis on the access to, content and openness of the education programmes to labour. The effect of human capital development on economic growth. This study employs the augmented solow humancapitalgrowth model to investigate the impact of human capital development on national output, a proxy for economic growth, using quarterly timeseries data from 19992012. The impact of human capital on economic growth sciencedirect. The impact of human capital development on economic growth of nigeria. Download complete research project materials on human capital development and economic growth in nigeria project materials ms word documentation only 98 pages 15 chapters. 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. Analysis of the implication of human capital development on. The global human capital report 2017 vii how nations develop their human capital can be a more important determinant of their longterm success than virtually any other factor. Using the income measurement approach, the study examined the nexus and causality between human capital development and economic growth in the long run economic growth in nigeria. Insight report the global human capital report 2017.
Impact of human capital development on economic growth. Education is a source of economic growth and development only if it is antitraditional to the extent that it liberates, stimulates, and informs the individual and teaches him how and why to make demands. Pdf human capital development and economic growth in nigeria. Investing in human capital for nigerias future english. Nigerias weak revenue mobilization has major implications for growth and development, including for improving its dire social service delivery outcomes. 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.
However, this study seeks to examine the causes of failure in. The connections between economic growth eg and human development hd form two chains. Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. Human capital is an integral part of any countrys development and economic growth has human capital as an important factor. 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. Pdf national development plan, human capital investment.
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. Pdf human capital is an important factor used in converting all resources to mankinds use and benefit. 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. Impact of human capital development on economic growth of. Human capital development and economic growth in nigeria. One index of human welfare, which incorporates income, education and health, shows that africas level of human development is the lowest of any region in. Furthermore, evidence from developed countries suggests that human capital has been the major driver of their development process. This study employs the augmented solow humancapitalgrowth model to investigate the impact of human capital development on national output, a proxy for. Wilson, geoff briscoe empirical analysis of human capital development and economic growth in european regions hiro izushi, robert huggins nonmaterial benefits of education, training and skills at a macro level andy green, john preston, lars erik malmberg. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human. 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. Human capital development is therefore a prerequisite for economic growth and development, as well as a necessary and sufficient condition for poverty reduction in. Human capital development african development bank. The impact of human capital development on economic growth in.
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