Human Capital Development and the Nigerian Economy: A Dynamic Specification

Abstract

We employed the autoregressive distributed lag [ARDL] model. This was estimated based on the Bound co-integration technique. We indeed attempted to shed light to relationship between human capital development and economic growth in Nigeria.  Thus, while it cannot be concluded that human capital development has significant contribution to economic growth in Nigeria because both variables of education and health were not found to be jointly significant, it can be concluded that education has contributed significantly and positively to economic growth in Nigeria in the long run. The finding thus holds that education is a catalyst for influencing economic growth in Nigeria. This finding is in line with theory. Therefore, policymakers should take imperative steps in embarking on strategic education in Nigeria with emphasis on secondary schools.

Key words: Human capital, GDP growth, Nigeria, ARDL model, education, health