An Empirical Analysis of The Impact of Investment in Human Capital on Nigerian Economy

Onodugo, Vincent A. and Kalu, Ijeoma E. and ANOWOR, OLUCHUKWU F (2013) An Empirical Analysis of The Impact of Investment in Human Capital on Nigerian Economy. PARIPEX - INDIAN JOURNAL OF RESEARCH, 2 (4). pp. 336-339. ISSN 2250-1991

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There is a paradigm shift in what constitutes the major growth driver among developing countries. Past efforts at trying to achieve growth through dependence on exploitation of natural and physical resources without commensurate and complimentary investment in human capital have proven ineffective. Consequently, the emphasis is on leveraging on human capital to fast track development. Nigeria being the most populous Black Country in the world with abundant economic potentials but still rated as one of the less developed countries (LDCs) is a clear indication that she has not been able to channel her material capital to optimum use. This work sets out to empirically analyze the impact of investment in human capital on Nigerian economy. The study employed the econometric method of Ordinary Least Squares (OLS) using data spanning between 1980 and 2008 to construct a multiple regression function. Expenditures on education (EXEDU) and health (EXHE); domestic investment (DOM_INV); foreign direct investment (FDI) and government fiscal investment (GF_INV) formed the regressors, while Real Gross Domestic product (GDP) is the regressand. The results show that the variables of interest (expenditures on education and health) are yet to be significant enough, at both 1% and 5% level of significance, to influence the general output (RGDP). Recommendations demand that human capital development should be planned, adequately funded and genuinely and sincerely managed in line with the needs of the economy in order to attain high growth and standard of living.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 24 Apr 2019 13:16
Last Modified: 24 Apr 2019 13:16

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