IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 3 NO. 2 2017

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Effect of Government Expenditure on Human Capital Development in Nigeria

Okafor, Chioma Nnenna & Ogbonna, Kelechukwu Stanley and Okeke, Chinwe Ijeoma

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Abstract

The phenomenal fall in the level of Nigeria’s governmental expenditure in education and health has generated a lot of interest and debate among scholars and investors alike. As a result, this paper focuses on the long run relationship between the governmental expenditure in education and health and Human Capital Development in Nigeria. The result of the VAR model show that the tests point out that HDI is significant in the current year (-1) but tends to converge insignificantly in the previous years. On the other hand, the value of the joint significance indicates that the current values of EDU and HTH are most influencing factors that determine the current values of HDI (-1). This is economically evidence that what influence Human Capital Development in Nigeria are the nature, pattern and level of governmental expenditure in education and health because the model reveal their insignificant direct impact on the HDI.

keywords:

Human Development Index, Causality effect, VAR, Education, Health

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