Human capital channels and productivity growth

Evidence from Nigeria

Dados Bibliográficos

ID2434565
AutoresOlabisi Popoola (0000-0002-4592-5205, Covenant University), Philip Olasupo Alege, Obindah Gershon (0000-0002-3544-7991, Covenant University), Abiola John Asaleye (0000-0002-8391-3774, Landmark University)
Ano2019
Volume12
Fascículo4
Páginas59-73
Data de publicação2019-12-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoEconomics & Sociology (JOURNAL)
Identificadores do periódicoISSN: 2071-789X • E-ISSN: 2306-3459
EditoraCentre of Sociological Research, Szczecin, Poland (PUBLISHER • PL)
DOI10.14254/2071-789x.2019/12-4/3
OpenAlexW3000031704
IdiomaEN
Citações recebidas4
Referências citadas12

Numerous studies have examined the relationship between human capital and productivity. However, the implications of human capital channels -the 'basic channel' and 'advanced channel' -were discounted from most of the empirical studies in Africa. This study, therefore, uses Vector Error Correction Model to examine the joint short-and long-run causality, as well as long-run behaviour of human capital channels on productivity within the period from 1980 to 2017. Evidence from the joint short-and long-run causality shows that there is no long-run one while joint short-run causality was observed in the basic channel, in the advanced channel there is both joint short-and long-run causality. For the long-run equation, primary school enrollment/secondary school enrollments have insignificant effect on productivity growth while tertiary institution enrollment and government expenditure on education have a positive effect on productivity growth. However, contribution of both effects is less than one per cent, thus showing low responsiveness of the inputs on productivity. The implications from this result are that human capital formation through education and investment in research and development have not promoted productivity in Nigeria. Investment in research and development is imperative to promote productivity and enhance the skills needed to adapt and diffuse new technologies.

Business · Economic growth · Economics · Human capital · Productivity · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Unemployment and Economic Growth