Human Capital Development And Economic Growth In Nigeria PdfBy Robin F. In and pdf 24.01.2021 at 22:33 5 min read
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- The Human Capital Project: Frequently Asked Questions
- The Impact of Human Capital Development on Economic Growth in Nigeria: ARDL Approach
- THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON THE ECONOMIC GROWTH OF NIGERIA
The Human Capital Project: Frequently Asked Questions
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Measure content performance. Develop and improve products. List of Partners vendors. Human capital and economic growth have a strong correlation. Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people.
Human capital refers to the knowledge, skill sets, and experience that workers have in an economy. The skills provide economic value since a knowledgeable workforce can lead to increased productivity. The concept of human capital is the realization that not everyone has the same skill sets or knowledge. Also, the quality of work can be improved by investing in people's education. Economic growth is an increase in an economy's ability, compared to past periods, to produce goods and services.
GDP is a representation of the total output of goods and services for an economy. For example, if a country has a GDP rate of 2. In order to determine how human capital impacts growth, we must first look at two key drivers of economic growth in an economy. It's estimated that consumers are responsible for more than two-thirds of the economic growth in the U. All of that spending creates a positive ripple effect leading to improved employment in various industries such as retail, auto manufacturers, technology stores, and home builders, to name a few.
The spending also leads to higher GDP growth throughout the economy. The increased GDP growth from consumer spending leads to improvements in business conditions. As companies become more profitable, they tend to invest more money into their businesses to create future growth. Business investment can include new equipment and technology purchases.
The investments businesses make are called capital investments. Capital investments, which require large outlays of capital or cash, are designed to boost a company's productivity and profits in the long term.
In a growing economy, companies also take on additional borrowing from banks to expand production due to higher consumer demand.
The loan proceeds are usually used for large purchases of assets such as manufacturing plants and equipment. The added production also leads to higher wages and increased employment as more workers are needed for the increase in consumer demand for a company's products. As companies look to hire workers to help with the increase in sales, it leads to new job openings in various types of employment. However, if the labor market becomes too tight, due to an expanding economy, companies are forced to train workers for the skillsets needed since there aren't enough available skilled workers.
As a result of business investment, companies are more productive, while GDP growth rises since business investment is a key component of growth. Both consumer spending and business investment, not only lead to more economic growth, but also play a prominent role in determining the level training and development of workers.
Human capital is positively correlated to economic growth since investment tends to boost productivity. The process of educating a workforce is a type of investment, but instead of capital investment such as equipment, the investment is in human capital. The role of governments is key to expanding the skillsets and education levels of a country's population.
Some governments are actively involved in improving human capital by offering higher education to people at no cost. These governments realize that the knowledge people gain through education helps develop an economy and boost economic growth. Workers with more education or better skills tend to have higher earnings, which, in turn, increases economic growth through additional consumer spending. Companies also invest in human capital to boost profits and productivity.
The company pays for a portion of the tuition for higher education. If the worker remains at the company after the training has been completed, she may develop new ideas and new products for the company. The employee might also leave the company later in her career and use the knowledge she learned to start a new company. Investing in workers has had a track record of creating better employment conditions in economies throughout the world. If employment is improving, consumer spending rises, leading to increased revenue for companies and additional business investment.
As a result, employment is a key indicator or metric for determining how GDP growth may perform. OECD routinely analyzes the impact of education levels on employment and ultimately, economic growth. Although investment in human capital tends to produce more growth, it doesn't necessarily mean the jobs are available for the newly-educated workers. Also, geography plays a role when it comes to job openings and the movement of labor. If job openings are located in the northern part of a country, but the skilled labor is in the south, growth could be hindered due to the cost of moving or the lack of desire to move.
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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Economics Macroeconomics. Key Takeaways Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determine the amount of skilled labor needed. Article Sources. Investopedia requires writers to use primary sources to support their work.
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The Impact of Human Capital Development on Economic Growth in Nigeria: ARDL Approach
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THE IMPACT OF HUMAN CAPITAL DEVELOPMENT ON THE ECONOMIC GROWTH OF NIGERIA
Advances in Economics and Business Vol. The role of human capital formation in economic growth and development has been highly underestimated in Nigeria. The study at this moment attempts to create an insight into the importance of human capital formation using real GDP per capita, government expenditure on health, government expenditure on education and primary school enrolment in the case of Nigeria. It used time series data from to and employed OLS regression technique, Johanssen cointegration and Granger causality test. The results from the various methods utilized affirmed the importance of human capital formation towards actualizing economic growth and development in Nigeria.
Human Capital Variables and Economic. Growth in Nigeria: An Interactive Effect. Abstract: Various studies have focused on the relationship between human capital and economic growth all over the world. However, there is still a missing gap on the joint influence of human capital investment components on economic growth particularly in Nigeria. This study therefore examines the interactive effects of the relationship between human capital investment components and economic growth in Nigeria for the period of —
Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Ogunsola Published This paper examined the impact of human capital development on economic growth in Nigeria using time series data spanning from to which were sourced from the World Bank Indicator and National Bureau of Statistics. It was set out to explore the relationship between human capital indices education and health and economic growth.