Human Resource Development and Economic Growth in Nigeria

Abstract:

This study examined the impact of human resources development on economic growth in Nigeria from 1980 to 2019. To achieve this objective, data were collected on the real gross domestic product, government expenditure on education, government expenditure on health and human development index from Central Bank of Nigeria Statistical bulletin, World Bank -World Development Indicator and UNDP. The study adopted the Augmented Dickey-Fuller unit root test, Johansen Co-integration test and Error Correction Mechanism (ECM) methods of econometric to analyse the collected data. Evidence from the findings revealed that all the variables were individually integrated of Order One and have a long-run relationship. The parsimonious ECM result revealed that an increase in government expenditure on education, government expenditure on health, as well as human development index, do not significantly increase economic growth in Nigeria during the period of study. The study concluded that human resources development via public spending in the education sector, health sector, as well as an increase in human development index remains crucial in the process of achieving sustainable economic growth in Nigeria. Based on these findings, the study recommended among others that crucial effort should be made by the government in channelling more funds to the health sector in order to improve health standards and reduce the mortality rate of the citizens since a healthy population and workforce is a major ingredient for rapid and sustainable productivity and growth. Enough funds should be allocated to education for proper utilization of potential productive and social benefits that will help to boost the real sector of the economy.