Canadian Social Science
Investment in Human Capital and Economic Growth in Nigeria Using a Causality Approach
Abstract
The paper examined the causal nexus between human capital Investment and economic growth in Nigeria for sustainable development in Africa at large between 1970 and 2009 using a Vector Error Correction (VEC) and Pairwise granger causality methodologies. The variables used in the study were tested for stationarity using the Augmented Dickey Fuller and Philip Perron test. The result showed that the variables are stationary at first differencing. Co-integration test was also performed and the result revealed the absence of co-integration between Investment in human capital and economic growth. The findings of the VAR model and pairwise estimate revealed no causality between human capital development and economic growth. The study recommends the need to increase budgetary allocation to the education and health sector and the establishment of sound and well-functioning vocational institute needed to bring about the needed growth in human capital that can stimulate economic growth. Also, the study identified that labour mismatch is an issue that government needs to reckon with in order to accelerate and sustain economic growth. In this regard, policy-makers in conjunction with employers and individuals needs to up date information on the real labour market value of different qualifications, in order to help them navigate through the increasingly complex education system and make the optimal kinds of educational investment decisions needed to propel economic growth.
Key words: Human capital; Economic growth; Pairwise; Causality; VAR; Sustainable development; Budgetary allocation
Résumé: Le document examine le lien de causalité entre l'investissement en capital humain et croissance économique au Nigeria pour le développement durable en Afrique en général entre 1970 et 2009 en utilisant un vecteur de correction d'erreur (VEC) et les méthodologies de causalité de Granger par paire. Les variables utilisées dans l'étude ont été testés pour stationnarité en utilisant les Dickey Fuller et Philippe Perron Test. Le résultat a montré que les variables sont stationnaires au différenciation première. Co-intégration de test a également été effectué et le résultat a révélé l'absence de co-intégration entre l'investissement en capital humain et croissance économique. Les résultats du modèle VAR et estimer paires n'ont pas révélé de lien de causalité entre le développement du capital humain et croissance économique. L'étude recommande la nécessité d'accroître l'allocation budgétaire au secteur de l'éducation et la santé et la création de sons et de bon fonctionnement institut professionnel nécessaire pour provoquer la croissance nécessaire dans le capital humain qui peut stimuler la croissance économique. En outre, l'étude a identifié que l'inadéquation du travail est une question que le gouvernement doit compter avec dans le but d'accélérer et de soutenir la croissance économique. À cet égard, les décideurs politiques en collaboration avec les employeurs et les personnes ayant des besoins de mise à jour des informations sur la valeur réelle du marché du travail des qualifications différentes, afin de les aider à naviguer dans le système éducatif de plus en plus complexes et faire le genre de décisions d'investissement optimales éducatives nécessaires à la propulser la croissance économique.
Mots clés: Le capital humain; La croissance économique; Par paires; Causalité; VAR
Keywords
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DOI: http://dx.doi.org/10.3968/j.css.1923669720110704.060
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