DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCES
This research work is an investigation into the Relative Impact of Human Capital Development on Economic Growth in Nigeria for the sample period 1980-2010, the research work employed the use of multiple regression model based on Ordinary Least Square (OLS) method. The research work posits that human capital development is highly instrumental and even necessary to improve the productive capacity of Nigeria and discusses the rationality behind investment in human capital. In line with this, the empirical results of the study revealed that investment in education and health, which are proxies for human capital, has positive relationship with economic growth.
TABLE OF CONTENTS
Table of contents
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Hypothesis of the Study
1.5 Significance of the Study
1.6 Scope and limitation of the Study
1.7 Definition of Terms
2.0 LITERATURE REVIEW
2.1 Theoretical Literature
2.2 Empirical Literature
2.3 Human Capital Development in Nigeria
3.0 RESEARCH METHODOLOGY
3.1 Model Specification
3.2 Model Estimation
3.3 Model Evaluation
3.4 Sources of Data
4.0 PRESENTATION AND ANALYSIS OF RESULT
4.2 Analysis of Results
4.3 Test of Hypothesis
4.4 Implication of the Result
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
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SUMMARY, CONCLUSION AND RECOMMENDATIONS
in this study, we re-stated the conventional wisdom that education and health (the major element of human capital), have long been recognized as indispensable to the development process. With this view, the study has tried to evaluate the relative impact o human capital development on economic growth in Nigeria for the period (1980-2010). We accept that in pursing the objectives, we did not account for the enrolment in to primary and secondary school levels in the country. The another human capital development is basically moves on the side of the skilled labour, such as mechanic, welders, electricians, panel-bitters, carpenters etc, contributes for the economic growth and development in Nigeria. This fields should be encouraged by the government to enhanced development the country-through opening workshop for training.
On the other hand, the impact of labour force, emigration, immigration, trade openness etc which may have significance effect on economic growth hail been omitted in order to avoid testing too many hypothesis at a time.
Based on the theoretical presentation, findings and mathematical manipulations of this research work; a clear cut and obvious relationship between human capital development and economic growth does not exist in Nigeria. Like I said earlier, the lack of relationship between human capital development and economic growth in Nigeria is as a result of corruption, ineffective governance, and mismanagement of public resource, which leads to inadequacy of the educational facilities needed to make education. Conducive for the students. Also in the hospitals, the lack of some of the basic facilities make some patients to go for treatment outside the country and those who cannot afford the cost of going outside the country, use the domestic hospitals to their own detriment and some even die in their homes because they cannot afford the cost of going to neither of the hospitals. For example, if one look at the data for government expenditure on education and health in 2009 budget, you will discover that government spends billions of naira, but corruption that dominated in Nigeria made the money to be mismanaged. By may looking, this is enough to take us somewhere on our journey to economic development but at the end of the year, we find that less than half of the budgeted amount has been used for the purpose and the rest diverted to private purse. On governance issue, the staff representatives indicated that, not withstanding a number of action that had been taken to reduce corruption, including the dismissal or prosecution of some senior officials, there appeared to be a sense of disappointment among the Nigerian public and in the international community that corrupt practices continued to be widespread throughout public institution in Nigeria.
Infact, the hopefield by the public that corruption wold be reduced substantially and rapidly under the democratic government. The contribution of human capital development to economic growth has been less than satisfactory and leaves much room for improvement. The subject of this workshop is very appropriate and timely because the development of human capital is very crucial to the attainment of any result in an organization. For example, other factors of production like technology, financial and material resources may be in abundant supply, they have to be coordinated by a human being because he has the willingness personal desires and preferences, can accomplish the desired objective.
The importance of human capital development on economic growth in Nigeria is noted in both the past and present adequate actions is to back the realization of these plans. It is only through well planned policies, that Nigeria can begin to fully benefit from human capital development, such that it hances economic growth performance.
Nigeria is confronted by most of the problems that could limit the capacity of expansion in education and health to stimulate growth and development such as under-employment, unemployment, low absorptive capacity, shortage of professionals, and regional imbalances. The persistence of many of the problems despite the various policy formulations and responses points to the need for a more for caused, responsive, functional and qualitative educational system.
To contribute significantly to economic growth and development, education must be of high quality and also meet the skill demand needs of the economic.
The regression result above shows that government expenditure on education has significant impact on economic growth in Nigeria. However, the government expenditure on health does not have significant impact on economic growth in Nigeria, it is estimated from the result that N1 increase in Government Expenditure on Education (GEE) and Government Expenditure on Health (GEH) will on the average lead to increase by N1.89k and 76 kobo in real Gross Demostic Product (RGDP) respectively. Moreover, when holding the explanatory variable constant, RGDP increases by N218,441. The sign some by the parameter estimate are conformity with the economic a prior expectation if government increases the expenditure on education and health, economic growth will be enhanced.
a. In this case, there is the need for:
2. Government should diversity the economy and invest in all the sectors and not just concentrating their interest o a particular sector if she want economic growth to be a reality and not just a mere dream.
3. Government should restrict people from taking their children or relations to school outside the country and also restrict people from going outside for treatment so that our leaders will fill the direct impact and will be moved to action.
4. School intake especially into the university system should be of quality type. This will ensure quality graduates that are employable. Also, there is need to improve the finding of the school system in Nigeria from primary school to university level.
5. Government in its employment policies should lay more emphasis on specialization and competence rather than paper qualification and ill-gotten certificate.
6. Parents and lectures should not encourage or assist their children and students respectively to purchase certificates because it encourages laziness or giving unmerited favour to students.
7. Better techniques for the efficient management of time should be put in place to ensure that even with the current facilities, educational institutions should at least double their output interms of quality and not quantity.
8. Parents should not wish to fulfill their life expectations in their children by selecting canners for them or by suggesting subjects they should study.
9. Government have to partner with the private sector to promote investment in the economy that promote employment. A trained labour that is unemployed cannot contribute meaningfully to economic growth. Improvement in employment also encourages physical capital formation.
10. The private sector should improve its participation in the provision of private schools and hospitals. While these are already in place, efforts should be made by the government to subsidize the cost of their services in order to make it more affordable to the public.
11. Government should not just increase its expenditure on education and health, but also the percentage of its total expenditure accorded to these sectors.
12. The free universal basic education (UBE) and health care programmes established by the federal and state governments should be improved on and sustained.
13. Government have to re-structure the curricular of higher education, making it more practical oriented. More importantly in technical and engineering courses, adequate practical that could solve day-to-day problems should be emphasized. Due emphasis should be placed on “on-the-job” training.Further research should be conducted to cover other years that were not put in to recognition in this research like 2011 and 2012.
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