DEPARTMENT OF ECONOMICS
FACULTY OF SOCIAL SCIENCES
ABSTRACT
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
Title
page
Approval
page
Dedication
Acknowledgement
Abstract
Table
of contents
CHAPTER ONE
1.0 INTRODUCTION
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
CHAPTER TWO
2.0 LITERATURE
REVIEW
2.1 Theoretical
Literature
2.2 Empirical
Literature
2.3 Human
Capital Development in Nigeria
CHAPTER THREE
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
CHAPTER FIVE
5.0 SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
5.2 Conclusion
5.3 Recommendations
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary
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.
5.2 Conclusion
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.
5.3 Recommendations
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.