Linkages among Higher Education, Poverty and Economic Growth in Nigeria: An Empirical Investigation

Abstract

The study has examined the linkages among higher education, poverty and economic growth in Nigeria from 1980-2012 using an Instrumental Variable based Two-Stage Least Square (IV/2SLS) methodology.  The Johansen cointegration test supports the existence of a long run relationship among the variables while the negatively signed and significant ECM insinuates a satisfactory speed of adjustment. The results obtained indicate that increases in economic growth do not have significant effect on the level of poverty in Nigeria. Also there is evidence of a positive and significant contribution of higher education to economic growth and poverty reduction, but the magnitude of transmission is lower than what is expected because unemployment has eroded the opportunity cost of the labour force. The study concludes that economic growth, though necessary, is not a sufficient condition for poverty alleviation, unemployment reduction and sustained investment in education in Nigeria. The study recommends a deliberate policy of redistribution.

Keywords: Graduate Turnout, Higher Education, Economic Growth, TSLS, Nigeria.