Quantitative Analysis of the Role of Human Resource Development in Economic Growth in Nigeria

Quantitative Analysis of the Role of Human Resource Development in Economic Growth in Nigeria

Author by Dr. Andy Okwu

Journal/Publisher: European Journal Of Economics, Finance And Administrative Sciences

Volume/Edition: 27

Language: English

Pages: 7 - 17

Abstract

This study has examined the role of human resource development in economic growth in Nigeria. The study employed quantitative analysis approach. The study considered human resource development from education and health perspectives. The variables considered appropriate indices for human resource development were government expenditures on education and health, primary education enrolment rate, secondary education enrolment rate, tertiary education enrolment rate and gross domestic product. The major tool of analysis is a multiple regression analysis model specified on the basis of perceived functional relationship between human resource development and economic growth in Nigeria. Treating gross domestic product as the explained variable and the others as the explanatory variables, a multiple regression model of was specified to forge a link between the two variable sets. With secondary data on the above variables, the model was estimated via ordinary least squares (OLS) techniques, and evaluated based on relevant data from the regression output. The result showed that only secondary and tertiary education enrolment rates exerted statistically significant effect on economic growth in Nigeria. The others exerted positive but insignificant effect on economic growth. However, the explanatory variables jointly exerted significant effect on growth. In addition, the model exhibited high explanatory power and indicated absence of first order serial correlation in the explanatory variables. Based on the findings, the study concluded that a clear-cut and obvious relationship existed between human resource development and economic growth and, thus, recommended for intensified effort in human resource development in Nigeria such as adoption of planned strategies in education and health sectors and increased budgetary allocation to the sectors.


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