IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN NIGERIA
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IMPACT OF
HUMAN CAPITAL ON ECONOMIC GROWTH IN NIGERIA
ABSTRACT
A nation can
not experience economic growth with out human capital. And for human capital to
actually have any impact on economic growth some investments have to be made.
Investment in human capital consists of; investment in education, training,
health and other social services that will help in enhancing the productive
capacity of labour. This project examines the impact of human of capital on
economic growth in Nigeria from 1977-2004. The study used the ordinary least
square technique (OLS) to determine the relationship between human capital and
economic growth. The research result shows that foreign direct investment does not
have much impact on economic growth while human capital which was proxied by
total government expenditure, labour and gross capital formation, has an impact
on economic growth.Â
Comparing
Nigeria to most countries we can see that the rate of investment in human
capital is low. Therefore in order to increase its formation and thereby
accelerate economic growth, much attention should be paid to expenditure on
education, health and other socio-economic infrastructure that will enhance the
productivity of labour. Attempts should be made t restructure the educational
system too meet the challenges of the society. The government should
furthermore try to ensure a stable macroeconomic environment that will
encourage increased investment in human capital by private bodies, religious
organization and individuals.
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