HUMAN CAPITALADVANCEMENT AND THE EXPANSION OF THEIR RELATIVE ECONOMY: A STUDY OF NIGERIA
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Keywords

Human Capital Advancement
Economic Expansion
Vector Error Correction Model (VECM)
Granger Causality
Relative Economy

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 (RGDPas 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.

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