Effect of Government Expenditure on Human Capital Index in Nigeria (Published)
The study examined the effect of government expenditure on human capital index in Nigeria. Government expenditure on administration, economic services, and social community services were the independent variables of the study, while human capital index was the dependent variable. The specific objectives were structured as follows: To ascertain the effect of government expenditure on administration on human capital index in Nigeria; to examine the effect of government expenditure on economic services on human capital index in Nigeria; and to investigate the effect of government expenditure on social community services on human capital index in Nigeria. The study adopted an ex-post-facto research design, covering the period between 2001 and 2021. Multiple regression technique was used for the data analysis. In line with the specific objectives of the study, it was revealed that Government expenditure on administration has a significant negative effect on human development index in Nigeria with a p-value of 0.0444 and t-statistics of -2.194267; Government expenditure on economic services has a non-significant positive effect on human development index of Nigeria with p-value of 0.3785 and t-statistics of 0.907474 and Government expenditure on social community services has a significant positive effect on human development index of Nigeria with p-value of 0.0403 and t-statistics of 2.245271. This implies that among the explanatory variables x-rayed, Government expenditure on administration and social community services are the major determinants of human development index in Nigeria. The study recommended therefore that the government should strive to block all the financial loopholes available to corrupt public officers and also ensure that any official caught perpetuating corruption should be prosecuted by relevant agencies. The government should increase the budgetary allocations made for agriculture, construction, transportation, communication. These expenditures increase human development in Nigeria. The government should ensure they increase the funds allocated to education, health, electricity and other social and community services. Such expenditures have proven to affect human development positively and significantly.
Keywords: Human Capital Development, government expenditure on administration, government expenditure on economic services, government expenditure on social community services
Analysis of the Relationship between Human Capital Development and Economic Growth in Nigeria (Published)
This research examined the effect of human capital development on the growth of Nigeria economy. The objectives of the study include to: (i) determine the extent to which significant long-run relationship exist among the human capital development and economic growth in Nigeria, (ii) determine if expenditure on education has significant effect on economic growth in Nigeria, (iii) investigate if expenditure on health has significant effect on economic growth in Nigeria. Using co integration techniques to investigate the effect of human capital development and economic growth in Nigeria, we obtained the following results. (i) there is significant long-run relationship between human capital development and economic growth in Nigeria. This is confirmed by the Johansen co-integration. (ii) It was estimated from the VECM, 1% increase in the government expenditure on education (TEDU), on the average led to 23.8% increase in GDP while. 1% increase in the government expenditure on health (THEA) caused 37.6% decrease in GDP. (iii) The two variables as human capital development factor were found to have significant effect on economic growth. However, government expenditure on education has positive relationship with GDP. This implies any increase in expenditure on education contributes positively to the growth of the economy. Based on the findings, the policy implications are in three directions (i) to retain the continuous long run relationship with GDP and human capital development, effort should be made to harmonize the activities in the health and education sector with much attention on funding. The harmonization of the activities in these two sectors will have long run effect on the economy. (ii) as one of the factors of human capital development, government expenditure on education was found to have positive effect on the economy. In the light of this, government should try as well to meet up with world standard benchmark on education expenditure in the annual budget. In so doing, this will improve on the economy. (iii) government expenditure on health was found to have negative effect on the economy. Therefore, effort should be made by government to address the agitations by the health workers which always make them to resort to frequent strike actions. If these worrying issues are addressed, the instability experienced in the health sector will be solved. This will go the long way promoting the economy. More so, efforts should be made to equip our health sector so that capital flight in the name of foreign medical treatment is reduced.
Keywords: Government Expenditure on Education, Government Expenditure on health, Human Capital Development, Nigeria