HUMAN CAPITAL ADVANCEMENT AND THE EXPANSION OF THEIR RELATIVE ECONOMY

A STUDY OF NIGERIA

Abstract

This study examined the relationship existing between human assets advancement and the expansion of their relative economy in Nigeria. Ex-post facto research design was adopted in the investigation with the data generated from the Central Bank of Nigeria
statistical bulletin, ranging from 1986 to 2022. Multiple regression analysis was employed, in which Vector Error Correction Model (VECM) and Granger Causality test were employed in the analysis. The variables employed in the analysis are real gross domestic product (RGDP as a dependent variable); while independent variables are total government expenditure on health (TGEH), total governmentexpenditure on Education (TGEE) andtotal export (TEXP). The results of our unit root test showed that all the variables were stationary at first difference. The cointegration test showed that there were four co integrating vector and this necessitated the application of Vector Error Correction Mechanism; which revealed that total government expenditure on health (TGEH), total governmentexpenditure on Education (TGEE) andtotal export (TEXP) are positive and statistically significant to real gross domestic
product (RGDP) in Nigeria. Furthermore, the results of thePaiwise Granger Causality test revealed that bidirectional relationship exist between government expenditure and economic growth in Nigeria within the period under study, where the causality runs
from TGEE RGDP and RGDP TGEE. Therefore, based on the above findings, the study recommends that Nigerian government should make education more accessible through improving its affordability to common individual in the society so as to boost the economic growth of Nigeria through human capital development.