Human capital channels and productivity growth

Evidence from Nigeria

Bibliographic Data

ID2434565
AuthorsOlabisi 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)
Year2019
Volume12
Issue4
Pages59-73
Publication date2019-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomics & Sociology (JOURNAL)
Journal identifiersISSN: 2071-789X • E-ISSN: 2306-3459
PublisherCentre of Sociological Research, Szczecin, Poland (PUBLISHER • PL)
DOI10.14254/2071-789x.2019/12-4/3
OpenAlexW3000031704
LanguageEN
Citations received4
References cited12

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