Human Capital Development And Economic Growth In Nigeria Pdf


By Robin F.
In and pdf
24.01.2021 at 22:33
5 min read
human capital development and economic growth in nigeria pdf

File Name: human capital development and economic growth in nigeria .zip
Size: 1955Kb
Published: 24.01.2021

This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser. Human capital consists of the knowledge, skills, and health that people invest in and accumulate throughout their lives, enabling them to realize their potential as productive members of society.

The Human Capital Project: Frequently Asked Questions

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights.

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.

Federal Reserve Bank of St. The Organisation for Economic Co-operation and Development. Organisation for Economic Co-operation and Development. Accessed Oct. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.

These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.

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.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles. Macroeconomics Structural Unemployment vs. Partner Links. Labor Productivity Definition Labor productivity is a term for the output of labor per hour. Supply-Side Theory The supply-side theory holds that economic growth is stimulated through fiscal policies designed to increase the supply of goods and services.

Trickle-Down Theory The trickle-down theory states that tax breaks and benefits for corporations and the wealthy will make their way down to everyone. What Is Stabilization Policy? Stabilization policy is a government strategy intended to encourage steady economic growth, even price levels, and optimal employment numbers. Investopedia is part of the Dotdash publishing family.

The Impact of Human Capital Development on Economic Growth in Nigeria: ARDL Approach

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads.

This journal is licensed under a Creative Commons Attribution 4. To make sure that you can receive messages from us, please add the 'Sciedupress. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders. International Journal of Financial Research. Open Journal Systems. Journal Help.

Use of this Web site signifies your agreement to the terms and conditions. Special Issues. Contact Us. Change code. Advances in Sciences and Humanities.

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.

2 Comments

Holly D.
26.01.2021 at 01:52 - Reply

Download buku 11 11 fiersa besari pdf vivir con plenitud las crisis pdf gratis

Guerin J.
27.01.2021 at 08:26 - Reply

Journal of Social Economics Research.

Leave a Reply