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The Mediating Role of Institutional Quality in Human Capital-Economic Growth Nexus in Nigeria: Evidence from Aggregate and Gender Perspective

Author

Listed:
  • Raifu, Sisiaka Akande

    (University of Ibadan, Nigeria)

  • Nnadozie, Obianuju Ogochukwu

    (University of Benin, Nigeria)

  • Opeloyeru, Olaide Sekinat

    (Tai- Solarin University of Education, Nigeria)

Abstract

This study examines the effect of human capital on economic growth and the role of institutional quality in the human capital-economic growth nexus. We investigate both, using disaggregated data on human capital–school enrolment at the primary, secondary and tertiary levels – and assess gender-specific impacts. The study employs data from Nigeria for the period 1984–2016. The results obtained from estimating an Autoregressive Distributed Lag (ARDL) model show that primary and secondary school enrolments do not have significant effects on economic growth in Nigeria, but tertiary school enrolment has a positive and significant effect on economic growth in the short-run. In addition, empirical findings from the gender-differentiated impact of human capital on economic growth suggest that both female and male primary school enrolments are not significant in explaining economic growth in Nigeria; female and male secondary and tertiary school enrolments have positive effects on economic growth in Nigeria but only female school enrolment at both levels is statistically significant. This underscores the importance of female education in Nigeria. Concerning the moderating role of institutional quality, institutions appear not to enhance the human capital-growth nexus both at the aggregate and gender-differentiated levels.

Suggested Citation

  • Raifu, Sisiaka Akande & Nnadozie, Obianuju Ogochukwu & Opeloyeru, Olaide Sekinat, 2021. "The Mediating Role of Institutional Quality in Human Capital-Economic Growth Nexus in Nigeria: Evidence from Aggregate and Gender Perspective," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(4), pages 157-188, December.
    • Handle: RePEc:ris:jecdev:0040
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    More about this item

    Keywords

    Human Capital; Economic Growth; Institutions;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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