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HUMAN CAPITAL DEVELOPMENT, CAPABILITIES AND ECONOMIC GROWTH IN NIGERIA

Ekiran, Joseph Ojo (PhD), Awe, Isaac Tope, & Omoniyi, Oluwatoyin Babatunde

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Abstract

Human capital development has been identified by various authors as part of the economic growth determinant. It is impossible to achieve sustainable growth without matching the relationship between human capital and economic growth with appropriate capabilities. This study sought to examine the relationship among human capital development, capabilities, and economic growth in Nigeria using time series data spanning from 1984 to 2021. Autoregressive Distributed Lag (ARDL) cointegration estimation technique was employed to analyse the relationship among human capital development, capabilities, and economic growth as confirmed by pre-test results [Phillip Peron (PP) and Augmented Dickey-Fuller (ADF)] to test for stationarity. The finding reveals that total factor productivity (proxy for innovation capability), Gross capital formation and financial deepening (financial capability) were the capability variables that significantly influenced economic growth. Therefore, the study concludes that human capital development without adequate capabilities, Nigeria will not be able to sustainably grow. Consequently, the government should focus its efforts on devising policies that will revolutionize Nigeria's education system in a manner that will stimulate the economy.

Keywords: Human Capital Development, Total Factor Productivity, Trade Openness, Life Expectancy and Financial Deepening.