Assessing the Effect of Human Capital Financing on Nigeria’s Economic Growth: A Time Series Approach

References

[1] Acemoglu, D. (2001). Human capital policies and the distribution of income: A framework for analysis and literature review (New Zealand Treasury Working Paper No. 01/03). New Zealand Treasury.

[2] Amadi, S. (2024). Impact of human capital development on economic growth in Nigeria. South East Journal of Political Science, 10(1). 129-143

[3] Awogbemi, T. O. (2023). Human capital development and Nigeria’s economic growth. Journal of Public Administration, Finance and Law, (27), 67-76..

[4] Becker, G. S. (1989). Human capital: A theoretical and empirical analysis, with special reference to education. University of Chicago Press.

[5] Braimah, A. G., & Apoloko, I. K. (2025). Human capital investment and industrial growth in Nigeria. Indian Journal of Finance and Economics, 6(2), 215–237.

[6] Ezebunwo, N., Robert, A. C., & Gbarawae, N. C. (2025). An assessment of the effect of human capital investment on industrial sector output in Nigeria. World Journal of Finance and Investment Research, 9(1), 51–66.

[7] Goshit, G. G., & Zumba, Y. I. (2025). An investigation of the relationship between human capital development and economic growth in Nigeria: A principal component analysis based human capital development index. Asian Journal of Economics and Empirical Research, 12(2), 151–165.

[8] Ibrahim, M. (2025). An analysis of the impact of human capital development on economic growth in Nigeria. Journal of Economics and Allied Research, 10(1), 374–384.

[9] Keji, S. A. (2025). Human capital migration, human capital skills and industrial output growth: A dynamic system GMM approach. Annals of Spiru Haret University. Economic Series, 25(3), 427–443.

[10] Lucas, R. E., Jr. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3–42.

[11] Obafemi, O. S. (2025). Human capital development and economic growth in Nigeria: A qualitative review. International Journal of Innovative Development and Policy Studies, 13(3), 162–173.

[12] Odey, P. A., Aladejare, S. A. M., & Odzie, T. (2025). Effect of human capital investment on economic growth in Nigeria. Journal of Development Economics and Finance, 6(1), 181–205.

[13] Ojonye, M. A. U. S. M., & Chidorom, E. R. (2023). Human capital development and economic growth in Nigeria. African-European Regional Governance & Development Conference (p. 88-145). University of Abuja – Nigeria

[14] Okpunor, L., Echekoba, F. N., & Ekpo, N. S. (2025). Effect of financial development on economic growth in Nigeria (1984–2024). International Journal of Finance, Accounting and Management Studies, 2(1), 112–135.

[15] Onyemaechi, B. A., & Clever, K. S. (2026). Budget implementation and economic growth: Imperative for economic growth in Nigeria. East African Finance Journal, 5(2), 15–32.

[16] Ovenseri-Ogbomo, F. O., & Obasuyi, M. (2026). Human capital development and economic growth: Any matter arising from the Nigerian economy? African Banking and Finance Review Journal, 21(1), 15–31.

[17] Romer, P. M. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94(5), 1002-1037.

[18] Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5, Pt. 2), S71–S102.

[19] Schultz, T. W. (1961). Investment in human capital. American Economic Review, 51(1), 1–17.

[20] Sen, A. (1999). Development as freedom. Oxford University Press.

[21] Shaw, T. M., & Heard, K. A. (1979). The politics of Africa: Dependence and development. Longman.

[22] Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65–94.

[23] Tang, K. (2025). The relationship between human capital investment and economic development. Journal of Economics and Economic Education Research, 26(4), 1–3.

[24] Udu, M. O. (2025). The nexus between human capital development and economic growth in Nigeria (1992–2024). International Journal of Economics, Environmental Development and Society, 6(4), 721–730.

@article{1716886,
      author = {Sydney Clever Keremah, Joseph Ubi Eyong},
      title = {Assessing the Effect of Human Capital Financing on Nigeria’s Economic Growth: A Time Series Approach},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {10},
      pages = {2393-2404},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1716886.pdf},
      abstract = {The paper focuses on the effects of human capital funding on economic growth in Nigeria and the time frame of 2000-2024. In particular, it examines the contribution of education, health, defence expenditure, fixed capital formation and labor to gross domestic product (GDP). The Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration method and the Vector Error Correction Model (VECM) were used to analyze time series data to determine both the long-run and short-run dynamics. According to the unit root outcomes, all the variables are all I(1), indicating an absence of order two, I(2) integration and the Johansen cointegration test indicates that three long-run relationships exist between the variables. The VECM findings show that health expenditure positively and significantly influences economic growth in the long-run but education, defence, and labor have negative or weak implications which indicate inefficiencies in the use of human capital. The error correction term is negative but large, which means that there is a slow movement towards the long-run equilibrium. The results substantiate Human Capital Theory and Endogenous Growth Theory, which highlights the significance of human capital investment in the long-run economic growth. The paper concludes that human capital investment is critical to the growth of the economy but its contribution in Nigeria is still limited by inefficiencies. It consequently suggests that there should be more and better investment in the health sector, education sector, creation of jobs, good governance and policies that should be put in place to diminish brain drain in order to make human capital contribution in sustainable economic growth.},
      keywords = {Economic Growth, Human Capital Funding, VECM, Health Expenditure, Education Expenditure.},
      month = {April},
      doi = {https://doi.org/10.64388/IREV9I10-1716886}
  }