Human Capital Development and Economic Growth in Nigeria

Abstract

Human Capital is an integral part of any country’s development and economic growth has human capital as an important factor. This study evaluates the relevance of human capital development on the growth of the economy pin pointing the relationship that exists between them. In this study, the ordinary least square (OLS) technique was adopted. The GDP was used as a proxy for economic growth; Per Capital Real Gross Domestic Product, primary school enrolment, public expenditure on education and health, life expectancy, stock of physical capital as proxy for human capital. From the analysis, it was deduced that there is a strong positive relationship between human capital development and economic growth. The recommendations drawn from the study centered on revisiting the man-power needs of the various sectors of the economy. Also, while workable policies should be put in place to bring about an overall economic growth, expenditures on health and public education should be utilized effectively and efficiently so that the country would experience quality health care services and quality educational system.

Key words: Human Capital, GDP, Economic growth, Ordinary Least Squares, Nigeria