VOlUME 04 ISSUE 08 August 2021
1Davis Ojima,2Uchenna N. Anyanwu
1Department of Economics, Federal University, Otuoke Bayelsa State, Nigeria
2Department of Economics, Nnamdi Azikwe Univeristy, Awka, Anambra State Nigeria
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ABSTRACT
Human capital investment has been identified as the increase in the potential of an individual through education, knowledge, skills and health acquired overtime which enhances his ability to be more productive in the society. It is believed that the more productive a people are, the more developed the economy, having been impacted by the increased productivity of the workforce. As its main objective, this paper examined the relationship between human capital investment and economic growth with Nigeria in focus and between the period 1989 – 2019. The paper used secondary sources of information for the study. Data obtained within the scope of the study and the variables were within the period of investigation. It adopted the unit root, the dynamic ordinary least squares, as well as the Error Correction Model (ECM) to test the short and long run relationship of the variables selected for the study. Between human capital investment and economic growth in Nigeria, the results showed a strong relationship. Based on the result, the study recommended that government prioritize education and health to assure the socio-economic well being of the people. As a corollary to the above, government at all tiers should increase annual budgetary allocation to these sectors. Government should also intensify efforts in economic and social orientation to mobilize and inculcate sanitary and health culture in the people.
KEYWORDS:Health, investment, economic growth, capital error correction mechanism
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