IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v7y2023i9p2071-2085.html
   My bibliography  Save this article

Institutional Quality, Human Capital Development and Poverty Level in Nigeria (1981-2021)

Author

Listed:
  • Olabisi Simeon Ayoade

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria.)

  • Monica Alagbile Orisadare Ph. D

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria.)

  • Micheal Olamide Adediwura

    (Department of Economics, Adeleke University, Ede, Nigeria)

  • Emmanuel Eromosele Ofino Ph. D

    (Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria.)

Abstract

This study examined the interactive effects of institutional quality and various component of human capital development on poverty level in Nigeria between the periods of 1981 to 2020. Employing the autoregressive distributed lag (ARDL) bound testing method of co-integration. The results reveal noteworthy patterns. Firstly, when assessing the impact of institutional quality (PCA_INQ) on its own, it is observed to show a positive and statistically significant relationship on poverty levels, both in short run and long run at p-value of 5% and 10% respectively. However, the situation changes when institutional quality is interacted with variables representing various component of human capital development. Specifically, the interaction terms such as the interaction of institutional quality with capital expenditure on education (INQ*CEE), the interaction of institutional quality with recurrent expenditure on education (INQ*REE), interaction of institutional quality with capital health expenditure(INQ*CHE), and interaction of institutional quality with recurrent health expenditure(INQ*RHE) revealed no statistically significant effects on poverty levels in both the short and long run, except for interaction of institutional quality with recurrent health expenditure (INQ*RHE) which shows a significant effect on poverty only in the short run. The results affirmed that both education and health human capital development proxy by their disaggregated expenditures on both sectors and institutional quality has the potential to mitigate poverty levels in Nigeria over both short and long periods. However, it is essential to note that these expected effects have not yet fully materialized. Furthermore, the study also establishes that physical capital contribute positively to economic growth in Nigeria both in short-run and long-run.

Suggested Citation

  • Olabisi Simeon Ayoade & Monica Alagbile Orisadare Ph. D & Micheal Olamide Adediwura & Emmanuel Eromosele Ofino Ph. D, 2023. "Institutional Quality, Human Capital Development and Poverty Level in Nigeria (1981-2021)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 2071-2085, September.
    • Handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:2071-2085
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-7-issue-9/2071-2085.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijriss/articles/institutional-quality-human-capital-development-and-poverty-level-in-nigeria-1981-2021/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Duerrenberger, Nicole & Warning, Susanne, 2018. "Corruption and education in developing countries: The role of public vs. private funding of higher education," International Journal of Educational Development, Elsevier, vol. 62(C), pages 217-225.
    3. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    4. Abdulkareem Alhassan & Abdulhakeem Abdullahi Kilishi, 2019. "Weak economic institutions in Africa: a destiny or design?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 46(7), pages 904-919, July.
    5. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    6. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    7. Olusegun Ayodele Akanbi, 2015. "Structural and Institutional Determinants of Poverty in Sub-Saharan African Countries," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 16(1), pages 122-141, February.
    8. Edinaldo Tebaldi & Ramesh Mohan, 2010. "Institutions and Poverty," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1047-1066.
    9. Chikelu, James Chukwubudom, 2016. "Impact of Human Capital Development on Poverty Reduction in Nigeria," MPRA Paper 74696, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. van de Klundert, T.C.M.J. & Smulders, J.A., 1991. "Reconstructing growth theory : A survey," Other publications TiSEM 19355c51-17eb-4d5d-aa66-b, Tilburg University, School of Economics and Management.
    2. Olusanya, Oluwakorede, 2016. "Causality between Human Resource Development and the Nigerian Economic Performance," MPRA Paper 100854, University Library of Munich, Germany.
    3. Simplice A. Asongu & Voxi Amavilah & Antonio R. Andrés, 2014. "Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries," Research Africa Network Working Papers 14/023, Research Africa Network (RAN).
    4. Shrabani Saha & Kunal Sen, 2019. "The corruption-growth relationship: Do political institutions matter?," WIDER Working Paper Series wp-2019-65, World Institute for Development Economic Research (UNU-WIDER).
    5. Miketa, Asami & Mulder, Peter, 2005. "Energy productivity across developed and developing countries in 10 manufacturing sectors: Patterns of growth and convergence," Energy Economics, Elsevier, vol. 27(3), pages 429-453, May.
    6. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.
    7. Michael S. Delgado & Daniel J. Henderson & Christopher F. Parmeter, 2014. "Does Education Matter for Economic Growth?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(3), pages 334-359, June.
    8. Kerekes, Monika, 2007. "Analyzing patterns of economic growth: a production frontier approach," Discussion Papers 2007/15, Free University Berlin, School of Business & Economics.
    9. Turnovsky, S., 2000. "Growth in an Open Economy: some Recent Developments," Papers 5, Warwick - Development Economics Research Centre.
    10. Onafowora, Olugbenga A. & Owoye, Oluwole, 2024. "Trade openness, governance quality, and economic growth in Latin America and the Caribbean," International Economics, Elsevier, vol. 179(C).
    11. Sefa Awaworyi Churchill & Mehmet Ugur & Siew Ling Yew, 2017. "Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 142-171, March.
    12. Arano, Kathleen G. & Srinivasan, Arun K., 2021. "Local Economies and Economic Growth, Does Location Matter? A Spatial Analysis in the Great Lakes Region," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 51(01), June.
    13. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).
    14. Vasudeva Murthy, N. R. & Chien, I. S., 1997. "The empirics of economic growth for OECD countries: Some new findings," Economics Letters, Elsevier, vol. 55(3), pages 425-429, September.
    15. Iancu, Aurel, 2009. "Real Economic Convergence," Working Papers of National Institute for Economic Research 090104, Institutul National de Cercetari Economice (INCE).
    16. Adriana Di Liberto, 2007. "Convergence and Divergence in Neoclassical Growth Models with Human Capital," Economia politica, Società editrice il Mulino, issue 2, pages 289-322.
    17. Alfredo Monte & Sara Moccia & Luca Pennacchio, 2022. "Regional entrepreneurship and innovation: historical roots and the impact on the growth of regions," Small Business Economics, Springer, vol. 58(1), pages 451-473, January.
    18. Ikonen, Pasi, 2010. "Effect of finance on growth through more efficient utilization of technological innovations," Bank of Finland Research Discussion Papers 21/2010, Bank of Finland.
    19. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    20. Chen, Binkai & Lin, Justin Yifu, 2021. "Development strategy, resource misallocation and economic performance," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 612-634.
    21. Lena Vogel, 2009. "The endogeneity of the natural rate of growth - an empirical study for Latin-American countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 23(1), pages 41-53.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:7:y:2023:i:9:p:2071-2085. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.