Human Capital Investment as a Catalyst for Sustainable Economic Development in Nigeria

2019 ◽  
Vol 5 (5) ◽  
pp. 13-22 ◽  
Author(s):  
Amadi Kelvin Chijioke ◽  
Alolote Ibim Amadi
Keyword(s):  
Human Capital ◽  
Gross Domestic Product ◽  
Capital Investment ◽  
Government Expenditure ◽  
Human Capital Investment ◽  
Nation Building ◽  
Human Capital Development ◽  
Real Gross Domestic Product ◽  
Capital Development ◽  
Budgetary Allocation

Human capital development presupposes investments, activities, and processes facilitating the generation of technical and expert knowledge; skills, health or values that are embodied in people. It implies maintaining an appropriate balance and key massive human resource base and providing an encouraging environment for all individuals to be fully engaged and contribute to organizational or national goals. Human capital development is necessary in order for National development to occur. In addition, human capital development teaches people how to utilize the advantages of diverse thinking styles (analytical and intuitive) so that they achieve the best holistic practical solutions. Human capital development and training are basically the same. This paper aims to examine the meaning of human capital development in relation to nation-building. The authors also took a cursory look at the concept of business education and its roles for sustainable development for nation-building. The study examined human capital investment as a catalyst for sustainable economic environment in Nigeria. The broad objective of the study is to analyze the effect of human capital investment on the Nigerian economy from 1986 to2017. The data used for the study were sourced from the central bank statistical bulletin and national bureau of Statistics. Ordinary Least Squares (OLS) techniques were used to analyze the data. The findings of the study reveal that there is a positive relationship between government expenditure on health and real gross domestic product. The adjusted coefficient of determination (R2) shows that 97.3% of variations in the real gross domestic product is being accounted for by government expenditure on education, government expenditure on health and gross capital formation while the remaining 2.7% is accounted for by variables not included in the model. The study suggests that Nigerian policymakers should pay more attention to the health sector and increase its yearly budgetary allocation to it. Nevertheless, the key to achieving best results lies not in ordinarily increasing particular budgetary allocation but rather in implementing a public expenditure and revenue and ensuring the usage of the allocated fund as transparently as possible.

Human Capital Development and Macroeconomic Performance in Nigeria: An Autoregressive Distributed Lag (ARDL) Approach

2019 ◽  
Vol 10 (1) ◽  
pp. 51-64
Author(s):  
Olukayode E. Maku ◽  
Emmanuel O. Ajike ◽  
Solomon Chinedu
Keyword(s):  
Human Capital ◽  
Gross Domestic Product ◽  
Government Expenditure ◽  
Domestic Product ◽  
Macroeconomic Performance ◽  
Human Capital Development ◽  
School Enrolment ◽  
Enrolment Rate ◽  
Per Capita ◽  
Capital Development

Abstract While developed and most developing nations have seen the need and continue to invest heavily in the development and training of her manpower as shown by huge budgetary allocations to education and health, Nigeria continues to play politics with her human capital development policy which has been poor and only been effective on paper despite the huge outlay of human capital available at our disposal. This study therefore examined the impact of human capital development on the macroeconomic performance of Nigeria. Using autoregressive distributed lagged model, the study proxied human capital development using government expenditure on education, government expenditure on health, secondary school enrolment rate, and school enrolment rate at tertiary level, while per capita GDP was used as proxy variable for measuring macroeconomic performance. The results of the estimated short and long run ARDL models indicated, an insignificant and negative relationship between human capital development and gross domestic product per capita (GDPPC) in the short run. Another result of this study is that, only tertiary enrolment rate (TER) has a significant and positive impact on gross domestic product per capita (GDPPC). This finding was an indication of relatively good but insufficient efforts by government to boost human capital. The study concluded that while human capital development is crucial for accelerated macroeconomic performance, government efforts aimed at boosting human capital has had a depressing effect on macroeconomic performance. On the strength of this, the study recommended that government and economic policy makers in Nigeria should place greater emphasis on human capital development.

scholarly journals Human Capital Investment and Its Impact on Firm’s Performance: A Study on Private Commercial Banks in Bangladesh

2020 ◽  
pp. 66-74 ◽  
Keyword(s):  
Human Capital ◽  
Human Resource Development ◽  
Commercial Banks ◽  
Capital Investment ◽  
Human Capital Investment ◽  
Value Added ◽  
Human Capital Development ◽  
Training Cost ◽  
Capital Development ◽  
The Impact

Human capital is important possessions used to achieve a firm’s competitiveness and it is through investment (the commitment of a firm’s fund in human resource development with the hope of generating returns), we can expand it. This study embodies the investment scenario in human capital development made by different private commercial banks of Bangladesh and the impact of the investment on firm’s performance. The researchers have used different HR metrics (Human Capital ROI, Net Profit after Tax per Employee, HR Expense Factor, Organizational Training Cost per Employee, Human Capital Value Added) to measure the impact of human capital investment on a firm’s performance. Finally, the study reveals that investment in human capital development significantly increases a firm’s performance.

Innovation and Investment in the Roman Rural Economy Through the Lens of Marzuolo (Tuscany, Italy)*

2020 ◽  
Vol 248 (1) ◽  
pp. 3-40
Author(s):  
Astrid Van Oyen
Keyword(s):  
Human Capital ◽  
Economic History ◽  
Rural Economy ◽  
Capital Investment ◽  
Trial And Error ◽  
Human Capital Development ◽  
Roman Economy ◽  
Roman World ◽  
Capital Development ◽  
Investment Behaviour

Abstract: The presence, uptake and economic impact of innovations in the Roman world have been much debated. Not subject to debate, however, is the agency behind innovation, which is assumed to be the large, elite landowner. Evidence of experimentation at the rural terra sigillata production site of Marzuolo (Tuscany, Italy) does not fit dominant models of external investment in the Roman world and challenges the directionality of innovation. Instead, this article makes the case that experimentation at Marzuolo was driven by intensification on the part of local smallholders, but was curbed by a lack of capital investment. A later, scaled-up terra sigillata production phase at the same site, linked to infrastructural investments, shows predatory investment behaviour by a landowner who appropriated a tried and tested facility. Recasting innovation as an open-ended process of trial and error that is centred on human capital development, labour and relations of production, changes the terms of study of the Roman economy and aligns it with broader conversations in economic history.

scholarly journals Selected macroeconomic determinants and economic growth in Cameroon (1970–2018) “dead or alive” an ARDL approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kesuh Jude Thaddeus ◽  
Chi Aloysius Ngong ◽  
Njimukala Moses Nebong ◽  
Akume Daniel Akume ◽  
Jumbo Urie Eleazar ◽  
...  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Government Expenditure ◽  
Human Capital Development ◽  
Content Type ◽  
Capital Development ◽  
Macroeconomic Determinants ◽  
The Impact

PurposeThe purpose of this paper is to examine key macroeconomic determinants on Cameroon's economic growth from 1970 to 2018.Design/methodology/approachData were obtained from the World Development Indicators and applied on time series data econometric techniques. The auto-regressive distributed lag (ARDL) bounds model analyzed the data since the variables had different order of integration.FindingsThe results showed long and short runs’ positive and significant connection between economic growth in Cameroon and government expenditure; trade openness, gross capital formation and exchange rate. Human capital development, foreign aid, money supply, inflation and foreign direct investment negatively and significantly affected economic growth in the short and long-runs. Hence, the macroeconomic indicators are not death.Research limitations/implicationsThe present research paper has tried to capture the impact of nine macroeconomic determinants on economic growth such as the government expenditure (LNGOVEXP), human capital development (LNHCD), foreign aids (AID), trade openness (LNTOP), foreign direct investment (LNFDI), gross capital formation (INVEST), broad money (LNM2), official exchange rate (LNEXHRATE) and Inflation (LNINFLA). However, these variables have the tendency to affect each other in a unidirectional or bidirectional manner. Further, the present research paper is unable to capture the impact of other macroeconomic variable due to the unavailability of data.Practical implicationsThe study recommends that Cameroon should use proper planning and strategic policy interventions to achieve higher sustainable economic growth with human capital development, foreign aid, money supply, foreign direct investment and moderate inflation.Social implicationsMacroeconomic indicators, if managed well, increase economic growth.Originality/valueThis paper to the best of the researcher's knowledge presents new background information to both policymakers and researchers on the main macroeconomic determinants using econometric analysis.

scholarly journals EMPIRICAL ANALYSIS OF THE IMPACT OF KADUNA STATE GOVERNMENT EXPENDITURE ON EDUCATION ON HUMAN CAPITAL DEVELOPMENT

2016 ◽  
Vol 4 (4) ◽  
pp. 542-546
Author(s):  
Yunana Titus Wuyah ◽  
Muhammad Dahiru Ahmad
Keyword(s):  
Human Capital ◽  
State Government ◽  
Primary Schools ◽  
Capital Expenditure ◽  
Government Expenditure ◽  
The State ◽  
Least Square ◽  
Human Capital Development ◽  
Capital Development ◽  
The Impact

This study empirically examine the impact of government expenditure on education on human capital development in Kaduna State over the last 15 years (2000-2015) using econometrics model with Ordinary Least Square (OLS) technique.The paper test for presence of stationary between the variables using Augmented Dickey Fuller (ADF) and autocorrelationusing Durbin Watson statistics. The results reveals all the variables were not stationary in levels except capital expenditure (CE) and Primary schools enrolment (PE) while the rest were stationary at second difference. DW shows presence of serial correlation. The regression results indicated that government expenditure on education have significant impact on human capital development in Kaduna State. It could therefore be recommended that the state government should increase its capital and recurrent expenditure on education, ensure proper management and monitory of funds made for the teachers, constant payment of teachers salaries and allowances in a manner that it will raise the state production capacity. The state should construct addition primary and secondary schools across the state, with modern facilities, and employ more teachers.

Dampak Investasi Sumberdaya Manusia Terhadap Pertumbuhan Ekonomi dan Kemiskinan di Provinsi Papua Barat: Pendekatan Model Computable General Equilibrium

Agrotek ◽  
2018 ◽  
Vol 2 (4) ◽  
Author(s):  
Supri Hadi
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
General Equilibrium ◽  
Urban Area ◽  
Rural Area ◽  
Computable General Equilibrium ◽  
Capital Investment ◽  
Government Expenditure ◽  
Human Capital Investment ◽  
Severity Index

The research objectives are to analyze impact of human capital investment on economic growth and poverty incidence in West Papua. Analysis is using a combination of Computable General Equilibrium (CGE) Model and Foster�Greer-Thorbecke Method. The human capital investment is represented by government expenditure for education and health. The simulation results show that human capital investment is able to increase economic growth and household income. Head count index, poverty gap index and poverty severity index also decrease except for non-labor household group in the urban area. Human capital investment for education gives more benefit to household in rural area than those in urban area, especially for farm-laborer and agriculture entrepreneur household groups in the rural area, while investment for health gives more benefit to non-agricultural high income household group in urban area.

scholarly journals A contribution to the human capital investment debate vis-à-vis economic growth: the case for Nigeria

2021 ◽  
Vol 1 (1) ◽  
pp. 15-28
Author(s):  
Lasbrey ANOCHIWA ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Investment ◽  
Growth Limitation ◽  
Human Capital Development ◽  
Education And Health ◽  
Long Run ◽  
Growth Development ◽  
Capital Development ◽  
The Relationship

Purpose: Human capital development is essentially vital in enhancing economic growth and Nigeria needs to grow. This study investigates the contribution of human capital to growth in Nigeria. Research methodology: We have disaggregated the article's variables into different models, for a better result. We employed the Autoregressive Distribution Lag (ARDL) framework to examine the relationship between the variables. E-views software was used as applied in Akbari, Chude and Chude (2013). Result: The result shows that there exists a long-run relationship between the human capital indices, education and health in Nigeria and economic growth. Though the coefficient is positive but has a statistically insignificant relationship with human capital development and economic growth. Limitation: The study was hindered by the availability of data. Contribution: It is satisfactory to know from the study that human capital is still relevant in explaining growth in Nigeria. Keywords: Human capital, Economic growth, Development

Resource Dependence and Human Capital Investment in China

2015 ◽  
Vol 221 ◽  
pp. 49-72 ◽  
Author(s):  
Jing Vivian Zhan ◽  
Haiyan Duan ◽  
Ming Zeng
Keyword(s):  
Human Capital ◽  
Local Governments ◽  
Capital Investment ◽  
Resource Dependence ◽  
Government Expenditure ◽  
Field Research ◽  
Mining Areas ◽  
Resource Endowment ◽  
Capital Development ◽  
Investment In China

AbstractCountries endowed with rich natural resources such as fuels and minerals often fall behind in human development. Does resource endowment hamper human capital development in China, a country that hosts rich resources in many of its regions? Through cross-regional and longitudinal statistical analysis and field research in selected mining areas, this study finds that resource dependence reduces government expenditure on human capital-enhancing public goods including education and health care. The local economic structure and reduced demand for labour, the shifting of government responsibilities onto mining enterprises, and the myopia of local residents and officials all discourage the local governments in resource-rich regions from investing in human capital.

scholarly journals Human Capital Investment and Employment Growth in Nigeria

2020 ◽  
Vol 16 (2) ◽  
pp. 81-88
Author(s):  
J. O. Saka
Keyword(s):  
Human Capital ◽  
Capital Investment ◽  
Employment Growth ◽  
Government Expenditure ◽  
Human Capital Investment ◽  
Least Square ◽  
Ordinary Least Square ◽  
Education And Health ◽  
Investment Opportunities ◽  
Lifetime Earnings

This paper mainly examines the link between human capital investment and employment growth in Nigeria for the period spanning 1980–2019 using timeseries data. The theoretical model is rooted in the simple theory of investment in human capital based on Ashton and Green (1996) relating to maximization of lifetime earnings and wealth. Diagnostic tests show that the ordinary least square (OLS) estimation technique is plausible. Results show that employment rate can positively induce government expenditure on education and health and secondary school enrollment.Creation of investment opportunities through basic infrastructural facilities – electricity, roads,etc. – is key to employment growth and human capital investment.

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