Human Capital Development Challenge: Why Corruption Eradication is a Panacea in Nigeria

Abstract

The study finds empirical evidence regarding the role of corruption in the development of human capital in Nigeria for 1996–2019 period. Using ARDL technique to examine the long-run and short-run relationship between corruption and human capital development, and VECM to assess the causal effects, the analysis involves the inclusion of two corruption indicators (corruption index and control of corruption) as well as two human capital development measures (human capital index and life expectancy at birth). Findings obtained are consistent with efficiency-reducing theory (corruption is harmful), as the empirical evidence indicates that corruption has a significant impact on human capital development, suggesting that the incidence of corruption is a crucial element in the development of human capital. Further evidence reveals that there exists bidirectional causality between corruption and human capital development, implying that both the level of corruption and human capital development are interlinked and mutually inducing. Hence, the entrenched phenomenon of corruption in the country seems to have presaged long-term poor human development. It is therefore suggested that aside existing institutions established to curb corruption, such policy measures, which include addressing factors that incentivise corruption such as inappropriate regulatory frameworks, rent-seeking dispositions, among others, need to be initiated and promoted.

Yönetişim ile İnsani Gelişmişliğin Sürdürülebilirliği: Ülkelerin Nitel Karşılaştırmalı Analizi

“…The empirical findings presented by Fagbemi et al (2022) demonstrate a noteworthy correlation between corruption and the development of human capital. Moreover, their research underscores the significance of the frequency of corruption as a crucial determinant in the process of human capital development.…”

Corruption: Governance challenge towards reducing unemployment in Nigeria

“…With a focus on 185 countries, Achim (2017) supported the argument that the push for improved human capital is inhibited by corruption across countries. Likewise, in a study conducted by Fagbemi et al (2022), it asserted that, between 1996 and 2019, corruption is found to have impeded human capital development in Nigeria. However, some authors have previously argued that human capital development could be stimulated by corruption (Aidt et al, 2008; Ebben & de Vaal, 2011).…”

The role of governance in girl‐child education: Insights on the odds against Nigerian women in leadership

“…Recognizing the importance of public sector efficiency in stimulating human capital development, Fagbemi et al (2022) posited that curbing corruption is central for achieving sustainable human capital development in Nigeria. In addition, based on the sample survey method of data collection, Akoth (2022) maintained that both boy child and girl child alike could be empowered when appropriate plan of action is designed in Kenya.…”