IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN NIGERIA (1981-2016).
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
IMPACT OF HUMAN CAPITAL ON ECONOMIC GROWTH IN NIGERIA (1981-2016).
Chapter one
INTRODUCTION
1.1 Background for the Study
The overall rate of development in every country is constantly constrained by a scarcity of productive factors. Capital is a scarce factor related with underdevelopment that is frequently highlighted in development planning. There is an assumption that growth is dependent on capital accumulation, and that more capital will promote or assist faster economic development.
Various researchers have repeatedly acknowledged the importance of human capital in economic progress. Human capital is seen as the most precious asset and must be mobilised (Awopegba, 2003).
Human capital as an economic concept refers to health, education, and other human abilities that might increase productivity (Todaro and Smith, 2003).
Capital and natural resources are passive factors of production, whereas human resources are active factors. Human capital is a country’s most precious resource; without it, physical capital (tools, machinery, and equipment) would not work well, impeding economic growth (Harbison, 1964).
Human capital includes education, health, on-the-job training, and skills developed via interactions between people or civilizations. In more technical terms, human capital is described as the sum of an individual’s intrinsic qualities as well as the information and skills that they gain and develop over their lifetime.
Human capital is an economic notion that has been around for at least two centuries, but its adoption into mainstream economic analysis and study is a recent and exciting development.
The need for this evolution became clear in the 1950s, when the application of empirical economic research to concerns about economic growth and income distribution showed significant flaws not just in our understanding of each but also in our manner of thinking about these issues.
Human capital is recognised as a driver of national development in all countries around the world. Providing education and health services to people is one of the most important strategies to improve the quality of human resources.
Aside from being social concerns, both provide an economy with the healthy, skilled human resources needed for economic growth and development.
The most serious issue facing human capital is a lack of finance. This has resulted in a skilled labour shortage, unemployment, and, most importantly, poverty. No country can achieve considerable growth unless it invests enough in human capital.
A good example is the Asian tigers, Taiwan and Singapore, whose economies have improved dramatically as a result of significant human capital investments.
Human capital investment is critical to the success of the Nigerian economy.Looking at Vision 20:2020, which aims to improve the educational system in terms of access, equity, infrastructure, teacher quality, and overall relevance, funding, and planning.
Human capital is also emphasised in the millennium development goals (MDGs), which are expected to be fully fulfilled by 2015.As a result, this research will delve deeply into the role of health and education in Nigeria’s development.
To that end, this study aims to explain and identify specific issues concerning human capital and economic growth in Nigeria. Building on previous research projects and studies, this study aims to deepen our understanding and expose us to more facts about the benefits and economic advantages that citizens will receive if the government implements the right and effective policies for developing human capital to promote economic growth and development.
The overarching goal of this research is to assess and analyse the impact of human capital investment on economic growth in Nigeria. The precise goals are to determine the relationship between investment in education, health, and economic growth in Nigeria.
1.2 Statement of the Problem
The high number of unemployed graduates and mass underemployment in Nigeria, 38% in 2016 (World Bank, 2017), which is evident in Nigeria’s poor per capita income, could be linked to the nation’s failure to develop its human capital.
Another source of worry is why Nigeria is classified as a developing country despite the fact that the country has a large number of universities, polytechnics, universities of science and technology, and educational colleges.
In Nigeria, few industry organisations are either functioning below full capacity or on the verge of closure, increasing unemployment in the country.
Nigeria is dominated by a large number of postsecondary institutions with substandard infrastructure and an unsuitable learning environment. No internet connection, no research and development centres (R&D), and frequent industrial disputes disrupt academic schedules.
No country has ever achieved long-term economic success without significant investment in its human capital, as seen by spending on education and health. All developed economies recognised these, which accounts for significant investment in education.
On the other hand, emerging countries have paid little attention to their human capital, which is why they are still classified as underdeveloped countries.
Poor investment in human capital development in Nigeria has resulted in mass unemployment, low per capita income, and a low standard of life, all of which are important concerns for many policymakers and researchers throughout the world.
Or why should Nigeria be referred to be an underdeveloped country when it has several natural resources that, if correctly utilised, may boost national prosperity and, as a result, human development in general.
Despite the heightened scholarly interest in the subject at hand, some concerns concerning the link between human capital development and economic growth remain unresolved.
One of the most pressing challenges is that the empirical link between human capital development and economic growth in Nigeria remains unclear. This is because a number of research on the impact of human capital development on Nigeria’s economic growth have yielded conflicting results (Lawanson, 2009; Adelakun, 2011).
Furthermore, while a long-term relationship has been shown between human capital development and economic growth in Nigeria, academics have not adequately examined the impact of capital and recurrent expenditure disaggregation on health and education. This study is consequently being conducted to fill some of these gaps. It is intended to assess the impact of human capital development on economic growth.
These and other related difficulties are the primary motivations for the researcher to conduct this investigation.
1.3 Object of the Study
The overarching goal of this study is to assess and analyse the favourable impact of human and physical capital development on Nigerian economic growth. More specifically, the research aims to:
The purpose of this study is to look at how government spending on education affects Nigerian economic growth.
The purpose of this study is to look at how government spending on health impacts Nigerian economic growth.
To examine the influence of gross capital formation on Nigeria’s economic growth.
1.4 Research Questions.
In order to fulfil the mentioned aims, the study answers the following research questions:
I. To what extent has government spending on education influenced Nigeria’s economic growth?
II. How has government spending on health affected Nigeria’s economic growth?
III. To what extent has gross capital formation influenced Nigeria’s economic growth?
1.5 Research Hypotheses.
This study will test the following propositions, symbolised by the null (Ho).
H0: Government spending on education has no major impact on Nigeria’s economic growth.
H0: Government spending on health has no substantial impact on Nigeria’s economic growth.
H0: Gross capital formation has no major impact on Nigeria’s economic growth.
Need help with a related project topic or New topic? Send Us Your Topic