The Impact of Human Capital Development on Economic Growth in Nigeria: 1980-2012

Abstract

The paper examines the impact of human capital development on economic growth in Nigeria using data for the period 1980-2012. Econometrics techniques such as Ordinary Least Squares Method and Johanson’s Co-integration Test were used to examine the long-run relationship. Evidence from the study suggest that though a long-run relationship exists between human capital and economic growth and the Nigerian human capital development is significantly and positively related to economic growth based on the result. But the link between the human capital development and the real sector of the economy remains very weak. This was due to the fact that some human capital development determinants have negative impact on economic growth in Nigeria and this implies that both the primary and secondary sub- sectors of education in Nigeria are yet to contribute significantly to economic growth. This is sad considering the amount of resources that are being allocated to these sub-sectors of education by the government and other stakeholders in Nigeria. Therefore, this calls for a rethink of our educational agenda and the study also recommended that the educational system should be restructured to meet the needs of the changing society in terms of high-level manpower that will propel the economy to higher levels of productivity, income and rapid economic growth.

Keywords- human capital, Resources, development, education, productivity, Efficiency