Human Capital Development and Sustainable Development: Evidence from Nigeria

Abstract

The contributions of human capital development in achieving the sustainable development cannot be overemphasized in any economy, this is because investment in education and health has been argued as the strategic impetus for improving the quality of human resources. Against this backdrop, this study investigates the impact of human capital development on the sustainable development goal one (1) – poverty reduction. The study utilizes the Nigerian data combining Johansen Cointegration test, Granger causality test and Fully Modified Least Squares to establish how public investments in both education and health affect poverty reduction in the country between 1981 and 2019. Originating from the findings of this study, both government expenditure on health and capital formation Granger caused poverty reduction in Nigeria. This is a vital signal that human capital development in the form of investment in health of human resources is an important condition for the achievement of the sustainable development goal one (1) – poverty eradication in Nigeria. Similarly, all the selected components of human capital development have positive contributions to poverty reduction in Nigeria. However, the contributions of health expenditures and capital formation are statistically significant. This implies that health expenditures and capital formation have a trickle-down effect on poverty reduction in Nigeria. Therefore, this study recommends the following: any time the Nigerian policymakers want to achieve the sustainable development goal one (1) – poverty reduction, the Nigerian budgetary allocations to education and health sectors should be in tandem with the global benchmark; this would ensure material and human resources that could drive the country towards the sustainable development. The enhancement of educational and health facilities by the policymakers would also bring about improvement in the living standard of the Nigerians.

Health Expenditures, Human Capital, and Sustainable Development: Panel Evidence from the New EU Member Countries

“…Therefore, the second hypothesis of this study is confirmed. In terms of empirical studies, few studies have investigated the relationship between sustainable development and human development, but the findings of this study are consistent with the results by Ekperiware et al [74], Olooookere et al [75], Khan [76], Oladeji and Adebayo [81], Ranis et al [82], Ranis, [83], Costantini and Monni [84], and Omar [86], which employ similar proxies.…”

“…Therefore, the increase in human capital leads to economic growth and development by reducing environmental degradation. Olooookere et al [75] argue that all components of human capital development play an important role in poverty reduction. The impact of human capital development on the path to sustainable development is emphasized and investments in education and health are considered to be a driving force for improving the quality of human resources.…”

Government Educational Spending and Human Capital Development in ECOWAS Sub-Region: Implication For Sustainable Development

“…Meanwhile, in order to improve the robustness of model ( 1), some control variables such as exchange rate, capital formation, trade openness, inflation and population growth were added. The inclusion of these variables should were driven from the argument of the extant literature that these variables have both direct and indirect influence on both government expenditure and human capital development (Oloke et al, 2022: Aderemi et al, 2021: Akinbode et al, 2020: Olowookere et al, 2022: Babasanya, Oseni and Awode, 2018.…”

Does Investment in Human Capital Offset Oil Dependence? Unveiling the Drivers of Unemployment in Uganda

“…The Neoclassical theory provides insights into the root causes of unemployment, highlighting the importance of investing in human capital development to address skill mismatches and enhance labor market efficiency (England & Folbre, 2023). By focusing on education, vocational training, and skill-building programs, Uganda can improve the employability of its workforce and reduce unemployment rates (Olowookere et al, 2022). Moreover, the global context of unemployment trends underscores the urgency of addressing this issue, particularly in regions like Africa where unemployment rates are disproportionately high (Perrotta, 2021).…”