The Impact of Human Capital Investment on the Nigeria Economy
CHAPTER ONE
OBJECTIVES OF THE STUDY
The main objective of this study is to examine the effects of human capital investment on the Nigeria economy. There are also some specific objectives which include:
- To investigate the significance of education on economic growth in Nigeria
- To examine the educational expenditure and its impact on the Nigerian economy
- To provide workable suggestions on how the level of human capital investment in Nigeria can be improved.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
CONCEPTUAL FRAMEWORK
The concept of human capital formation refers to a conscious and continuous process of acquiring requisite knowledge, education, skills and experiences that are crucial for the rapid economic growth of a country (Harbinson 1973; Salleh 1992). It refers to the abilities and skills of the human resources of a country while its formation refers to the process of acquiring and increasing the number of persons who have the skills, education and experience which are critical for economic and political development of a country (Okojie 1995). Human capital formation transcends mere acquisition of intellectual ability through formal education system. It is dynamic and multi-dimensional, including the family, the educational system, formal and informal institutions, special, professional and traing organizations, enterprise in-house arrangement, and even personal efforts.
Harbinson and Myers defined human capital investment in economic terms as the accumulation of human capital and its effective investment in the development of an economy. According to them human resources can be developed in three ways.
- By formal education, beginning from first level to secondary education and then to higher forms of education as in colleges and universities.
- Through systematic or informal training programmes in employing institutions, in adult education programme and through membership in various political, social, religious, and cultural groups.
- Through self improvement efforts by reading or by learning from others in informal contact.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of human capital investment on the Nigeria economy
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of human capital investment on the Nigeria economy
Summary
This study was the impact of human capital investment on the Nigeria economy. three objectives were raised which included: To investigate the significance of education on economic growth in Nigeria, to examine the educational expenditure and its impact on the Nigerian economy and to provide workable suggestions on how the level of human capital investment in Nigeria can be improved. The study adopted a survey research design and conveniently enrolled 80 participants in the study. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from CBN staffs in Oyo state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The effect of human capital investment on economic growth has been borne with conflicting conclusions with some scholars concluding that there is a positive relationship between human capital investment and economic growth This study is tried to answer the question, “Does human capital investment lead to economic growth in Emerging Economies?” From the study, it is clear that individual investment in education or health would not result in premium economic growth as when there is a proper mix or interaction in the investment of both. From the result, it is clear that investment in health individually would lead to negative growth in GDP. However, the investment in education individually would lead to positive growth in GDP but will not as much when there is a proper mix or interaction in the investment of education and health. This is in agreement with what Bill Gate said that investment in physical asset will not generate enough growth and development like investment in human capital (health and education) because physical asset cannot operate in isolation. It has been established that basic literacy enhances the productivity of workers with low skill occupations.
Recommendation
- There is high need for specialized schools in Nigeria such that there will be schools that will attend to the peculiar gifts and interests of individuals in the country in order to promote specialization by focusing on expanding the knowledge and developing the interests and skills of the individuals so as to effectively contribute to the developmental process of the nation. Schools should focus on various aspects such as business, music, science, leadership, arts, sports e.t.c
- It is also recommended that educational funding should not be the sole responsibility of the federal, state and Local governments as this has constrained financing, other sources such as the private sector, religious organizations, international agencies, non-governmental organizations (NGOs) should be encouraged to contribute to the financing of education in Nigeria.
- The teachers should also be at the core of issues so that they are adequately trained, selected and remunerated and this should be the responsibity of one of the educational agencies which is to ensure that he teaching standard in all ramifications in the country is kept at a highly acceptable level. It can also be seen that despite the considerable government expenditure on education in Nigeria there is low contribution of educational expenditure on economic growth in the country. Thus this study suggests the following further recommendations;
- There should be a balanced allocation of funds with adequate attention paid to the primary level of education (but not at the detriment of other levels).
References
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