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What are the Short-run and Long-run Drivers of Human Capital Development in Nigeria?

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  • Nwaogwugwu, Chii
  • Evans, Olaniyi

Abstract

This paper investigated the drivers of human capital development in Nigeria in the short and long run. Using an ARDL approach over the period 1980 to 2015, the results show that expenditure on education and interest rate have positive significant impacts on human capital in the long but not in the short run. Similarly, exchange rate, another policy variable, has significant negative impacts on human capital in the long but not in the short run. On the contrary, trade openness has insignificant positive impacts on human capital. Therefore, the estimated coefficients of our model show that macroeconomic policies such as fiscal, monetary, and exchange rate policies have significant impacts on human capital while trade policies have insignificant impacts. That is, the fluctuations in human capital in Nigeria depend and respond to fiscal, monetary, and exchange rate policies. The key conclusion is that any policy advice should be sensitive to the level of human capital in the country and ideally complemented by policy effectiveness that will determine the long-term success of human capital development.

Suggested Citation

  • Nwaogwugwu, Chii & Evans, Olaniyi, 2019. "What are the Short-run and Long-run Drivers of Human Capital Development in Nigeria?," MPRA Paper 97130, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:97130
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    Cited by:

    1. Evans, Olaniyi, 2020. "Socio-economic impacts of novel coronavirus: The policy solutions," BizEcons Quarterly, Strides Educational Foundation, vol. 7, pages 3-12.
    2. Momodou Mustapha Fanneh & Mustapha Jobarteh & John T. Mendy & Amadou Jawo, 2020. "Modeling and Forecasting Infections, Fatalities and Recoveries from COVID-19 pandemic in SSA: A case of the 10 hotspot in Sub-Saharan Africa," Technium Social Sciences Journal, Technium Science, vol. 9(1), pages 308-317, July.
    3. Nanang Suryadi & Rila Anggraeni & Dandi Ariyanto & Muhammad Fajrul Islam, 2021. "The effect of the COVID-19 pandemic on consumer behaviors: A study on gen-z in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 313-318, December.

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    More about this item

    Keywords

    Policy effectiveness; human capital; ARDL;
    All these keywords.

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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