What are the Short-run and Long-run Drivers of Human Capital Development in Nigeria?
Chii Nwaogwugwu and
Olaniyi Evans
MPRA Paper from University Library of Munich, Germany
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.
Keywords: Policy effectiveness; human capital; ARDL (search for similar items in EconPapers)
JEL-codes: I00 O1 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)
Published in A Festschrift in Honour of Professor Folayan Ojo, Lawanson O. I & Nwakeze N. M (Eds.), University of Lagos Press (2019): pp. 263-284
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:97130
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