IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 3 NO. 8 2017

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The Impact of Federal Government Investment in Human Capital Development on Productivity and Economic Growth from 2006-2015

Manji Wapshak Kumdi, Pwol Davou and Amayah Filicus Adakai (Ph.D)

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Abstract

This research study examined the impact of government expenditure in education on productivity in Nigeria. The study specifically examined the impact of government expenditure in education on labour productivity in Nigeria; and evaluated the impact of government expenditure in education on economic growth in Nigeria from 2006 to 2015. Data on government expenditure in education, labour productivity, and economic growth (GDP) were retrieved from Total Economy Database™ and analysed using Eview statistical package. Simple linear regression was used in testing the hypotheses of the study. The study reveals that that Government expenditure on education does not have significant impact on labour productivity in Nigeria. This means that government expenditure on education does not contribute to labour productivity in the country for the period investigated. The result also revealed that there exist a positive but insignificant relationship between government expenditure on education and economic growth in Nigeria. Since the budgetary allocation to education sector for the period studied do not have impact on economic growth, the research recommends that federal government and other policy makers in the economic sector should make concerted effort to increase investment in education sector to boost productivity and economic growth in the country. Budget Allocation to Education should always meet the 26% recommendation by the United Nations Program on Development (UNDP).

keywords:

Education, Human Capital, Productivity and Economic Growth

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