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THE RELATIONSHIP BETWEEN HUMAN CAPITAL INVESTMENT COMPONENTS AND ECONOMIC GROWTH IN NIGERIA FOR THE PERIOD OF 1981 – 2017

Project topic for Economics department.

Abstract

This study focused on human capital development on economic growth in Nigeria. In line, it examines the interactive effects of the relationship between human capital investment components and economic growth in Nigeria for the period of 1981 – 2017. The study employed secondary annual data on education expenditure, health expenditure, real gross domestic product and gross capital formation obtained from the Central Bank Statistical bulletin, 2017. The data were analyzed using Fully Modified Ordinary Least Squares (FMOLS) technique. The results of the study showed that there was positive and significant relationship between the interactive effects of human capital components and growth in Nigeria. The study concluded that the interactive effect of the human capital variables was also in conformity with the theoretical proposition that increase in human capital will enhance growth as stipulated in the modified Solow growth model by Mankiw, Romer & Weil (1992).


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