AN INVESTIGATION ON THE IMPACT OF GOVERNMENT EXPENDITURE IN HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Raymond Nwandu

Abstract


This study explores the impact of human capital development on economic growth in Nigeria from 1981 to 2017 using time series data of thirty four (36) years. The empirical analysis begins with an investigation of the stationarity of the variables specified under the model specification. Upon which the study used the ARDL bound estimation techniques to examine the existence of long run and short run dynamic relationship between human capital formation and economic growth in Nigeria. Our results show that a long run dynamic relationship exists between human capital development and economic growth in Nigeria. It is therefore recommended that in order to achieve economic growth, policymakers should inter-alia increase not just the amount of expenditure made on the education sector, but also the percentage of its total expenditure accorded to the sector. Moreover, improve personnel development in the health care and ensuring adequate distribution of health facilities within the federation is essentially imperative.


Keywords


Human capital development, economic growth, expenditures on Health and education

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References


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