IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 7 NO. 2 2021

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Public Expenditure and Human Capital Development in Nigeria

Eneisik Gogo Erasmus

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Abstract

Despite consistent improvement in government budgetary allocation and spending on health and education sectors in Nigeria, the country human capital development index remained very low as compared to others countries. This study empirically investigated the relationship between public expenditure and human capital development in Nigeria, evidence from 1960 to 2019.Public expenditure is proxied by public education expenditure and health expenditure while human capital development is proxied by human development index. Secondary data was obtained from central bank statistical bulletin and United Nations development programme report various years. Hypotheses were tested using Ordinary Least Square Regression statistical tool with the aid of E-view 10 econometric statistical software. The finding shows that public education expenditure had significant impact on human development index. Evidence shows that public health expenditure had positive significant impact human development index. Empirical evidence revealed thatjointly health and education expenditure has a positive but insignificant impact on human development index in Nigeria. The study concludes that public expenditure through investment in education and health sector influence human capital development in Nigeria. Thus, the researcher recommends amongst others that; Nigeria government should increase funding of education sector to meet education, scientific and cultural organization minimum requirement. Education should be made constitutional provision to ensure improvement in the quality of education and to prevent political leaders from non-commitment to educational sector growth. Government should design human capital development master plan based on short and long time framework and must be committed by current and future government in Nigeria.

keywords:

Public Expenditure, Human Capital Development, Human Development Index, Nigeria

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