Human Capital Development As A Catalyst For Economic Growth And Development In Nigeria (1986 – 2016)

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Human Capital Development As A Catalyst For Economic Growth And Development In Nigeria (1986 – 2016)


Abstract


The study examines Human capital development and economic growth in Nigeria. A model was specified and data were collected from the period of 1986-2016. The method used in this research work is the error correction model (ECM) and variables are: real gross domestic product (RGDP) as the dependent variable while human capital development (LNHMC), labour force productivity (LNLFP), money supply (MS), and population (POP) are the independent variables and while only labour force productivity (LNLFP) was significant, human capital development (LNHMC), money supply (MS) and population (POP) were all insignificant. From the ECM result, the following findings were made.

The estimate coefficients which are -0.058166 {LNHMC} shows that a 1 percent increase in human capital development will cause 5.9 percent decrease in GDP, 1.168297 {LNLFP} shows that a 1 percent increase in labour force productivity will cause an 116.8 per cent increase in GDP, 0.001167 {MS} shows that a 1 percent increase in money supply will cause 0.1 percent increase in GDP. 0.217250 {POP} shows that a 1 percent increase in population will cause 21.7 percent increase in GDP. I recommend that there should be policies


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