IDEAS home Printed from https://ideas.repec.org/a/hur/ijarbs/v4y2014i4p25-35.html
   My bibliography  Save this article

Human Capital Development and Economic Growth: The Nigeria Experience

Author

Listed:
  • God’stime Osekhebhen Eigbiremolen
  • Uchechi Shirley Anaduaka

Abstract

This study employs the augmented Solow human-capital-growth model to investigate the impact of human capital development on national output, a proxy for economic growth, using quarterly time-series data from 1999-2012. Empirical results show that human capita development, in line with theory, exhibits significant positive impact on output level. This implies that human capital development is indispensable in the achievement of sustainable economic growth in Nigeria, as there is an increase in economic performance for every increase in human capital development. The results further reveal a relatively inelastic relationship between human capital development and output level. Going forward, government and policy makers should make concerted and sincere efforts in building and developing human capacity through adequate educational funding across all levels. This remains the major way of attaining sustainable economic growth and development in any economy.

Suggested Citation

  • God’stime Osekhebhen Eigbiremolen & Uchechi Shirley Anaduaka, 2014. "Human Capital Development and Economic Growth: The Nigeria Experience," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(4), pages 25-35, April.
    • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:4:p:25-35
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Human_Capital_Development_and_Economic_Growth_The_Nigeria_Experience.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Human_Capital_Development_and_Economic_Growth_The_Nigeria_Experience.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    2. 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.
    3. Wakeel A Isola & R. A Alani, 2012. "Human Capital Development and Economic Growth: Empirical Evidence from Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(7), pages 813-827.
    4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    5. Wakeel A. Isola & R. A Alani, 2012. "Human Capital Development and Economic Growth: Empirical Evidence from Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 2(7), pages 813-827, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adenike Mosunmola Osoba & Sheriffdeen Adewale Tella, 2017. "Human Capital Variables and Economic Growth in Nigeria: An Interactive Effect," EuroEconomica, Danubius University of Galati, issue 1(36), pages 131-143, May.
    2. P. Eko Prasetyo & N. Rahayu Kistanti, 2020. "Human capital, institutional economics and entrepreneurship as a driver for quality & sustainable economic growth," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2575-2589, June.
    3. Samuel O. Okafor & Kenneth Jegbefumwen & Olisaemeka D. Maduka & Ambrose C. Okeke, 2016. "A Three-Factor Model of Inclusive, Sustainable and Resilient Economic Development for Developing Countries," Applied Economics and Finance, Redfame publishing, vol. 3(4), pages 57-72, November.
    4. Oseni, Isiaq Olasunkanmi & Oyelade, Aduralere O., 2023. "Effect of Capital Expenditure on Unemployment Rate in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 11(3), June.
    5. Mohammed Shuaibu & Popoola Timothy Oladayo, 2016. "Determinants Of Human Capital Development In Africa: A Panel Data Analysis," Oeconomia Copernicana, Institute of Economic Research, vol. 7(4), pages 523-549, December.
    6. Lovlyn Ekeowa Kelvin-Iloafu & Francis Ezieshi Monyei & Wilfred Isioma Ukpere & Happiness Ozioma Obi-Anike & Phina Njideka Onyekwelu, 2023. "The Impact of Human Capital Development on the Sustainability and Innovativeness of Deposit Money Banks’ Workforces," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    7. Sunday Anderu Keji, 2021. "Human capital and economic growth in Nigeria," Future Business Journal, Springer, vol. 7(1), pages 1-8, December.
    8. Md. Qamruzzaman & Wei Jianguo & Sharmin Jahan & Zhu Yingjun, 2021. "Financial innovation, human capital development, and economic growth of selected South Asian countries: An application of ARDL approach," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4032-4053, July.
    9. Angus O. Unegbu, 2016. "Redefining, measuring and disclosure of faculty intellectual capital," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 13(1), pages 50-71.
    10. Khan, Jangraiz & Khattak, Naeem Ur Rehman Khattak & Khan, Amir, 2015. "Human Capital-Economic Growth Nexus: A Causality Analysis for Pakistan," MPRA Paper 65689, University Library of Munich, Germany.
    11. Rajesh Sharma & Pradeep Kautish & D. Suresh Kumar, 2018. "Impact of Selected Macroeconomic Determinants on Economic Growth in India: An Empirical Study," Vision, , vol. 22(4), pages 405-415, December.
    12. Olawunmi Omitogun & Adenike M. Osoba & Sheriffdeen Adewale Tella, 2016. "An Interactive Effect of Human Capital Variables and Economic Growth in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 108-119, OCTOBER.
    13. Madugba Joseph Ugochukwu & Egbide Ben-Caleb & Uzondu Anoruoh Paul & Oparah Vivian Iheaku & Adesola Deborah Ayomide, 2023. "Intellectual Capital Value Addition and the Efficient Assets Management of Listed Manufacturing Firms in Nigeria," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 241-260, December.
    14. Maku Olukayode E. & Ajike Emmanuel O. & Chinedu Solomon, 2019. "Human Capital Development and Macroeconomic Performance in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach," Valahian Journal of Economic Studies, Sciendo, vol. 10(1), pages 51-64, July.
    15. Adeyemi A. Ogundipe & Olasinde Mobolaji & Oluwatomisin M. Ogundipe, 2021. "An Analysis of the Effect of Human Capital Investment on Economic Development in Nigeria: Does a New Indicator Alter Existing Evidence?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 17-29, January.
    16. Godwin Emmanuel Oyedokun & Ayodeji Babatope Adeyemi, 2018. "Human Capital Formation and Economic Growth in Nigeria," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 7(3), pages 44-65, July.
    17. UDUH, Dominic Marior & AZU, Benedict Chioma, 2017. "Human Capital Development and Economic Growth in Nigeria; The Role of Nomadic Education," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 7(11), pages 931-941, November.
    18. Chinwuba Okafor & Ibrahim Shaibu, 2016. "Modelling Economic Growth Function in Nigeria: An ARDL Approach," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 84-93.
    19. Favour O. Olarewaju & Oluwafadekemi S. Areo & Adeyemi A. Ogundipe & Toun Y. Ogunbiyi & Abiola J. Asaleye, 2020. "Capital and Labour Productivity: A Comparative Study of Nigeria and South Africa," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(12), pages 1384-1395, December.
    20. Ady Soejoto & Hendry Cahyono & Ni'matush Solikhah, 2017. "Effect of Solow Variable to the Economic Growth in Southeast Asia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 277-282.
    21. Yahya Fikri & Rhalma Mohamed, 2024. "Impact of Education, Life Expectancy, and Labour Force on Economic Growth: The Case of Morocco," Post-Print hal-04701464, HAL.
    22. Raifu, Sisiaka Akande & Nnadozie, Obianuju Ogochukwu & Opeloyeru, Olaide Sekinat, 2021. "The Mediating Role of Institutional Quality in Human Capital-Economic Growth Nexus in Nigeria: Evidence from Aggregate and Gender Perspective," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(4), pages 157-188, December.

    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. Chinwuba Okafor & Ibrahim Shaibu, 2016. "Modelling Economic Growth Function in Nigeria: An ARDL Approach," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 3(1), pages 84-93.
    2. Maku Olukayode E. & Ajike Emmanuel O. & Chinedu Solomon, 2019. "Human Capital Development and Macroeconomic Performance in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach," Valahian Journal of Economic Studies, Sciendo, vol. 10(1), pages 51-64, July.
    3. Olawunmi Omitogun & Adenike M. Osoba & Sheriffdeen Adewale Tella, 2016. "An Interactive Effect of Human Capital Variables and Economic Growth in Nigeria," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 12(5), pages 108-119, OCTOBER.
    4. Ehigiamusoe Ehigiamusoe, 2013. "Education, Economic Growth & Poverty Rate in Nigeria: Any Nexus?," Journal of Social and Development Sciences, AMH International, vol. 4(12), pages 544-553.
    5. Adeeba Sarwar & Muhammad Azmat Hayat, 2021. "A Nexus among Institutions, Education and Economic Growth: An Analysis of Developing Countries," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 30-42, January.
    6. Masagus M. Ridhwan & Peter Nijkamp & Affandi Ismail & Luthfi M.Irsyad, 2022. "The effect of health on economic growth: a meta-regression analysis," Empirical Economics, Springer, vol. 63(6), pages 3211-3251, December.
    7. Stefania Villa, 2005. "Determinants of growth in Italy. A time series analysis," Quaderni DSEMS 24-2005, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    8. Aurora A.C. Teixeira & Natércia Fortuna, 2006. "Human capital, trade and long-run productivity. Testing the technological absorption hypothesis for the Portuguese economy, 1960-2001," FEP Working Papers 226, Universidade do Porto, Faculdade de Economia do Porto.
    9. Adenike Mosunmola Osoba & Sheriffdeen Adewale Tella, 2017. "Human Capital Variables and Economic Growth in Nigeria: An Interactive Effect," EuroEconomica, Danubius University of Galati, issue 1(36), pages 131-143, May.
    10. Jeffrey Frankel, 2014. "Mauritius: African Success Story," NBER Chapters, in: African Successes, Volume IV: Sustainable Growth, pages 295-342, National Bureau of Economic Research, Inc.
    11. 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.
    12. Johannes W. Fedderke & John M. Luiz, 2005. "Does Human Generate Social and Institutional Capital? Exploring Evidence From Time Series Data in a Middle Income Country," Working Papers 029, Economic Research Southern Africa.
    13. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 1996. "The Poverty of Nations: A Quantitative Exploration," NBER Working Papers 5414, National Bureau of Economic Research, Inc.
    14. Andersson, Fredrik N.G. & Edgerton, David L. & Opper, Sonja, 2013. "A Matter of Time: Revisiting Growth Convergence in China," World Development, Elsevier, vol. 45(C), pages 239-251.
    15. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    16. Olusanya, Oluwakorede, 2016. "Causality between Human Resource Development and the Nigerian Economic Performance," MPRA Paper 100854, University Library of Munich, Germany.
    17. Patel, Dev & Sandefur, Justin & Subramanian, Arvind, 2021. "The new era of unconditional convergence," Journal of Development Economics, Elsevier, vol. 152(C).
    18. Asongu, Simplice & Amavilah, Voxi & Andrés, Antonio R., 2014. "Economic Implications of Business Dynamics for KE-Associated Economic Growth and Inclusive Development in African Countries," MPRA Paper 63793, University Library of Munich, Germany.
    19. I. Hakan Yetkiner, 2006. "Saglik ile Buyume," Ege Academic Review, Ege University Faculty of Economics and Administrative Sciences, vol. 6(2), pages 83-91.
    20. 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).

    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:hur:ijarbs:v:4:y:2014:i:4:p:25-35. 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: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/IJARBSS .

    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.