Full Project – INVESTMENT ON HUMAN CAPITAL AND ITS IMPACT ON NIGERIAN ECONOMIC GROWTH

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ABSTRACT

This research work studied investment on human capital and its impact on Nigeria economic growth between 1981-2014. It bothers on determining how human capital and its impact can help in the development of Nigeria economy. The researcher was motivated to choose this topic in order to evaluate how investment on human capital impact on Nigerian economic growth. In this research work the researcher made use of secondary source of data. Gross domestic product was regressed on capital expenditure on education, recurrent expenditure on education and government expenditure on education.  The researcher employed the popularly known ordinary least square (OLS) modeling technique to test the overall significance of the model and to determine its effect on the economy. Stationarity of the variables were tested using unit root. The research showed there is a positive relationship between human capital development and economic growth in Nigeria. Based on the empirical research recommendation where made on how best the government can improve in its activities on human capital development to boost economic growth in Nigeria. 

BACKGROUND OF THE STUDY                                                             

Investment on human capital can be described as an end or objective of growth. It is a way to fulfill the potential of people by enlarging their capabilities and this necessarily implies empowerment of the people and enabling them to participate actively in the growth process.

Schultz (1961) saw human capital as those resources that are inherent in each human being, which can be traded between the users and the owners to improve their respective living conditions. He outlined these inherent resources in human being to include knowledge, skills and attitude. Human capital growth is also a means of enhancing the skills, knowledge, productivity and inventiveness of people through a process of human capital formation. Todaro and Smith, (2003) state that human capital as an economic term encompasses health, education and other human capacities that can raise productivity.

Jhingan (2005) points out that in the process of economic development, it is customary to attach more importance to accumulation of human capital.

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Full Project – INVESTMENT ON HUMAN CAPITAL AND ITS IMPACT ON NIGERIAN ECONOMIC GROWTH