This work is licensed under a Creative Commons Attribution 4.0 International License.
Education Expenditure and Human Capital Development in Nigeria
American Journal of Economics and Business Management,
Vol. 6 No. 9 (2023): American Journal of Economics and Business Management
Abstract
The paper investigates the effect of government expenditure on education on human capital development in Nigeria. The method of Ordinary Least Squares (OLS) - otherwise known as the Classical Least Squares (CLS) – was used to estimate the specified model of the study which was analyzed using the regression analysis, having carried out the ADF test for unit root and cointegration test. Findings revealed that there is a significant relationship between education expenditure and human capital development in Nigeria. However, with the exception of life expectancy index and corruption which were not significant, education expenditure, health expenditure, and government effectiveness have significant effect on human capital development. Based on the findings of the study, the study recommends that: the government should adequately fund education in line with the international benchmark of 25% of the nation’s annual budget. This will help enhance the standard of education in the country. The government should also adequately finance the health sector. This will improve the country’s life expectancy and reduce the increasing medical tourism abroad. Adequate and functional laws should be put in place to help tame the systemic corruption that is eating into the bones and fabrics the nation’s economy.
Keywords
Download Citation
Endnote/Zotero/Mendeley (RIS)BibTeX
- Aigbokhan, B., Imahe, O & Aileman, M. I. (2007). Education expenditure and human capital development in Nigeria: Any correlation so far? Research paper, Ambrose Alli University. Journal of economic review, vol 3(8), 203-219
- Anyanwu, J. C. & Erhijakpor, A. E. (2008). Education expenditures and school enrolment in Africa: Illustration from Nigeria and other SANE countries. Economic research working paper, (92).
- Bratti, M. Bucci, A. & Moretti, E. (2004). Demographic trends, human capital and economic growth in developing countries: Theory and evidence. Ancona, Italy: Department of Economics, University of Ancona.
- Garba, J. (2011). Human capital formation, utilization and development in Nigeria. Ibadan, Nigeria: Polygraphics Ventures Ltd.
- Gupta, S., Marijn, V. & Erwin, T. (2002). The effectiveness of government spending on education and health care in developing and transition economies. European Journal of Political Economy, 18(4), 717-737.
- Gustav, R. & Stewart, F. (2010). Economic growth and human development. World Development Journal, 2 8(2), 197-219.
- Lawanson, O. I. (2009). Human capital investment and economic development in Nigeria: The role of health and education. Oxford: Oxford University Press.
- Nkolika (2010). Education expenditure and human capital development in Nigeria. A project presented to the Department of Economics, UNIZIK, Awka, Anambra, Nigeria.
- Odia, L. O. &. Omofonmwan, S. I. (2007). Educational system in Nigeria: Problems and prospects. Journal of Social Sciences, 81-86.
- Ogujiuba, K. K. & Adeniyi, A. 0. (2005). Economic growth and human capital development: The Case of Nigeria. A research paper of the Central Bank of Nigeria. Abuja, Nigeria: CBN.
- Olaniyi, O. O. & Adam, J. A. (2003). Public expenditure and human development in Nigeria. Selected papers for the year 2002 Annual Conference, the Nigerian Economic Society (NES).
- Omotor, D. G. (2011). An analysis of federal government expenditure in the education sector of Nigeria: Implications for national development. Journal of Social Sciences, 105-1 10.
- Todaro, M. P & Smith, S. C. (2009). Economic development (10th ed.). England: Pearson education limited.
- World Bank (2014). Knowledge, productivity and innovation in Nigeria: Creating a new economy. Washington D. C., U.S.A.: The World Bank.
References
Aigbokhan, B., Imahe, O & Aileman, M. I. (2007). Education expenditure and human capital development in Nigeria: Any correlation so far? Research paper, Ambrose Alli University. Journal of economic review, vol 3(8), 203-219
Anyanwu, J. C. & Erhijakpor, A. E. (2008). Education expenditures and school enrolment in Africa: Illustration from Nigeria and other SANE countries. Economic research working paper, (92).
Bratti, M. Bucci, A. & Moretti, E. (2004). Demographic trends, human capital and economic growth in developing countries: Theory and evidence. Ancona, Italy: Department of Economics, University of Ancona.
Garba, J. (2011). Human capital formation, utilization and development in Nigeria. Ibadan, Nigeria: Polygraphics Ventures Ltd.
Gupta, S., Marijn, V. & Erwin, T. (2002). The effectiveness of government spending on education and health care in developing and transition economies. European Journal of Political Economy, 18(4), 717-737.
Gustav, R. & Stewart, F. (2010). Economic growth and human development. World Development Journal, 2 8(2), 197-219.
Lawanson, O. I. (2009). Human capital investment and economic development in Nigeria: The role of health and education. Oxford: Oxford University Press.
Nkolika (2010). Education expenditure and human capital development in Nigeria. A project presented to the Department of Economics, UNIZIK, Awka, Anambra, Nigeria.
Odia, L. O. &. Omofonmwan, S. I. (2007). Educational system in Nigeria: Problems and prospects. Journal of Social Sciences, 81-86.
Ogujiuba, K. K. & Adeniyi, A. 0. (2005). Economic growth and human capital development: The Case of Nigeria. A research paper of the Central Bank of Nigeria. Abuja, Nigeria: CBN.
Olaniyi, O. O. & Adam, J. A. (2003). Public expenditure and human development in Nigeria. Selected papers for the year 2002 Annual Conference, the Nigerian Economic Society (NES).
Omotor, D. G. (2011). An analysis of federal government expenditure in the education sector of Nigeria: Implications for national development. Journal of Social Sciences, 105-1 10.
Todaro, M. P & Smith, S. C. (2009). Economic development (10th ed.). England: Pearson education limited.
World Bank (2014). Knowledge, productivity and innovation in Nigeria: Creating a new economy. Washington D. C., U.S.A.: The World Bank.