The Dynamics of Human Capital Development and Industrial Growth in Nigeria

Abstract

AbstractThis article is aimed at providing empirical evidence on the impact of human capital development on industrial growth in Nigeria. Time series data spanning 1976-2016 period on relevant variables were analyzed using both descriptive and econometric techniques. ADF procedures were used to test for stationarity of the variables. The results show that the variables moved towards equilibrium in the long-run. The results also show that recurrent expenditure on education and health has a negative impact on industrial growth. The goodness of fit was encouraging. This article asserts that graduate skill acquisition programmes be pursued rigorously and government should adhere to the minimum education budgetary allocation of 26 per cent demanded by UNESCO. It is also important for the authorities to make efforts to increase investment in the industrial sector through tax reliefs such as tax holidays, pioneer reliefs and exemptions. Keywords: Human capital development, industrial growth, expenditure on education, expenditure on health, gross capital formation, exchange rate, Nigeria