the impact of human capital on economic …
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International Journal of Accounting & Business Management
www.ftms.edu.my/journals/index.php/journals/ijabm
Vol. 7(No.2), Nov, 2019
ISSN: 2289-4519 DOI: 10. 24924/ijabm/2019.11/v7.iss2/307.321
This work is licensed under a
Creative Commons Attribution 4.0 International License.
Research Paper
THE IMPACT OF HUMAN CAPITAL ON ECONOMIC DEVELOPMENT IN NIGERIA
Ewelike Emmanuel Ikechukwu FTMS College
Abstract
The study critically analyzes the impact of Human Capital on the Economic Growth of Nigeria. The
fact from the data in the figures earlier shows that there has been an increase in government
expenditure on human capital development in Nigeria and there has also been increasing in the
GDP growth in Nigeria, however, these growth is not felt in all other indices of the economy as
unemployment rate is increasing, poverty rate is increasing while the standard of living in Nigeria
is reducing also. This makes one wonder what the actual impact of human capital on economic
growth in Nigeria is. This work intends to estimate the impact of human capital variables of
education and health on economic growth in Nigeria with the use of ordinary least square
estimation technique and annual variables sourced from the CBN and the study revealed that
education and health expenditure affects positively the growth of the Nigeria economy. Based on
the findings, it was recommended among others that enabling environment should be created for
businesses to thrive.
Key Terms: Human Capital, Economic Growth, Impact,standard of Living, Poverty.
1. Introduction Nigeria which is the country of this study is the biggest black nation in the world and has the
biggest economy in Africa with average GDP growth of 4.3 as of 2014. However, the economy is
currently witnessing a recession that has seen the growth of the economy going down to below
zero. To back up this argument the below tables indicate Nigeria’s expenditure on education
and health which are the two highest components of human capital.
Also, despite the increasing human capital expenditure by the Nigerian government, the
per-capita GDP of Nigeria has been on the decline over the years. Nigeria’s GDP per capita as of
2015 is 2,640.29 USD in comparison to that of South Africa’s 5,691.69 per capita GDP in USD ,
Seychelles’s $15,400 per capita GDP and Equatorial Guinea’s $ 10,000 per capita GDP (WDI,
2015). This has also raised a pertinent question on why the declining figures even in the midst
of increasing expenditure on human capital by the federal government of Nigeria. (UNDP, 2009).
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The disappointing performance of manufacturing is serious especially as manufacturing is
expected to be an “engine of growth” of the economy. Manufacturing capacity utilization which
averaged 75% in the mid-1970s, declined sharply to below 50% from 1983 and by 1995 it had
reached a low of about 29%. In 1999, capacity utilization in manufacturing was about 30%,
rising to about 40% in 2010. This marginal improvement, however, was not enough to
contribute to increasing real output in the economy.
In a bid to address these problems, the government of Nigeria has initiated several
policies and programs to assess the real impact of human capital development on economic in
Nigeria, yet, the policies and programs seems not to be yielding the much-needed results as the
economy is still far from her mates in the committee of nations. In a bid to address this, several
studies have been carried out to ascertain the real impact of human capital on economic growth
in Nigeria.
Since this research is about Nigeria, there are very few or no studies done in Nigeria as it
touches the impact of human capital on economic growth in Nigeria. However, this research is
more reliable than previous researches because it addresses the two major components of
human capital which are education and health expenditure. The research will be of great
benefit to the government of Nigeria, employers of labor and policymakers in Nigeria.
Therefore, the objectives of the study are –
1) To describe health and education expenditure in Nigeria
2) To estimate the Impact of Education expenditure the growth of the Nigerian
economy
3) To estimate the impact of health expenditure on the growth of the Nigerian economy
This paper is divided into section 1 which is on the background of Nigerian economy
that leads to the impact of Human Capital of Economic Development in Nigeria, section 2 consist
of empirical studies and explanation of variables, section 3 consist of methodology used for the
study, section 4 consist of data analysis, and section 5 consist of conclusion and
recommendation.
2. Literature Review According to (Odor, 2014), human capital is the skills, education, and prerequisite for
work in an organized environment. (OECD, 1996) defines human capital as a central issue for
policymakers and practitioners engaged in economic development both at the national and
regional levels. Based on (Human Development Report, 2007), human capital as a “know-how,
education, work-related competencies and psychometric assessment of employees”.
Human capital can be said to be the abilities, knowledge attributes and skills in an
individual that helps the individual in labor to add value to the system (OECD, 2001), in this
case, labor is the component of output referred to as workforce. A major component of human
capital is investment in education no wonder Schultz (1961) opined that education investment
is a major factor in growth of the economies.
Several researchers have viewed the term Human Capital through various perspectives,
but to Odior (2014) it is seen as human beings who possess skills, knowledge, and attitudes that
are utilized in the production process. In fact, the human capital components in man are the
skills, knowledge, capabilities, attitudes and the experiences which are developed through
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education, health, on-the-job training, and other means. Schultz (1961) has identified five means
of human capital formation to include:
i) Investment in health facilities and services; broadly conceived to include all
expenditures that affect the life expectancy, strength and stamina, and the vigor and
vitality of the people;
ii) Learning on the job which includes old-typed internship organized by firms;
iii) Formally organized education at the elementary, secondary and higher levels;
iv) Professional programs for professionals about Information / Information
Communication Technology, organized by Companies and Firms.
2.1 Health as a component of Human Capital Resource
Health is an important factor in individuals’ wellbeing; perhaps because health is a form
of human capital, As a result, the impact of health on society has been under extensive
examination particularly in industrialized countries.
Empirical evidence has shown that investing in health improves economic outcomes
while the level of income also determines the health of an individual. This means that there
seems to be reverse causal relationship health and growth. That is, improved income levels
mean improved access to inputs and increased quality of health.
Health as one of the fundamental components of human capital is very strategic for
economic growth and development. The literature is fraught with empirical evidence of how
health variables/indices have impacted economic outcomes in both developed and developing
countries. Suhrcke, Arce, McKee & Rocco (2008) reported findings of historical studies on health
and growth which revealed that much of today’s economic wealth could be attributed to health
gains historically.
2.2 Education as a component of Human Capital
Another major determinant of the growth of an economy is education. Education comes
through the acquisition of training and skills. Education is a major component of the human
capital cause an educated labor force will be equipped with the required skills and ability to
execute the job and even be inventive while delivery the given job. Education influences the
population of a nation greatly that it touches everybody in the economy; there is a significant
positive link between rise in educational attainment in an economy and economic growth of
that economy (Olaniyan & Okemakinde, 2008).
Smith (1937), Marshall (1930) and Schultz (1961) focused on the relevance of education
as economic growth. Conclusively, education is the process of dishing out what one already
knows and getting to know more, education is borne out of learning, practice, and experience.
Education is Nigeria has been described by experts in Nigeria as poor and of very poor quality
owing to lack of support from the government and its agencies.
Here in Africa, especially in Nigeria, Nigeria spends less than 10 percent of her
budgetary allocation on education. This explains why Nigeria is still poor in terms of human
capital development and other human capital indices, weak in research and development and
still ranked among the lowest in the committee of nations.
2.3 Migration as a component of Human Capital Resources
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Although no universally accepted definition of internal migration currently exists, the
consensual definition of migrating internally is any movement (whether temporary or
permanently) of individuals from one part of a nation to any other part of that nation for the
reason of making a new residence ( Migration, 2011; Kok, 1999). Defined in this way, an
internally displaced person (IDP), a transferred civil servant or a Nigerian university graduate
who is deployed by the National Youth Service Corps (NYSC) scheme which allows her to serve
Nigeria in a place other than his or her place of residence is also an internal migrant. Besides a
lack of consensus on the definition, controversies also exist on the length or duration of the
migrants’ stay and the distance between the place of habitual residence and host location. For
instance, a number of studies maintained that such movement must have occurred within the
last six months and must have originated from one local government area to another. Nigeria’s
National Population Commission in its 2010 Population Estimation Survey on Internal
Migration in Nigeria not only defined internal migration as any change of residence that has
taken place within national borders and across local government areas, but also that such
movement must have lasted for a period of not less than six months. In some other literature
(Kingsley, 2005), a time frame of between ten days and three months, as well as any location
whether or not such location lies within the same local government area as the place of habitual
residence or not, have been suggested.
2.4 Training and development
The concepts of human capital refer to the abilities and skills of human resources of a
country, while Training and Development are also referred to as human capital development
and it is to the procedure of enhancing the skills, education, and experience of the workforce of
any economy. These processes are very important for growth and development of the economy.
(Okojie, 2005). Also, training and development are the propellers of the human factor the
process of producing which comprises knowledge, skills or competencies and abilities of the
workforce. The place of training and development of human capital cannot be overemphasized
as among all factors of production, only labor can learn and change. Only labour is innovative
and also creative. As result attention must be paid to enhancing the quality of labor which is
what training and development do Harbison (1973). Training and development are tripartite in
nature in the sense that it can be through continuous education, through pre-job education, and
on the job education. On the job training which is common in the outside world is quite scarce in
the Nigerian content as most the workers, especially in the Nigerian public sector, are not up to
data in the modern techniques of their jobs. Most of the workers do not know how to operate
modern information and telecommunication gadgets that will be of great help to their day to
day jobs and operations. This has also impacted greatly and negatively on the outcome and
productivity of not only the workers but that of Nigeria as a whole.
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2.5 Information / Communication
Information and communication technology (ICT) is a component of Human Capital. It can be
referred to as effective labor as argued by Solow (1956) in his growth model. ICT changes the
life of the world’s population fundamentally in various forms; communication technology affects
many of the economic life of nations which include how individuals live their life, how
individuals work, how individuals interact, and the environmental quality of an individual. ICT
has a great influence on the human capital of a nation as it affects the productivity of the labor
force of a nation.
2.6 Empirical studies on the Impact of Human Capital towards Economic Development
A lot of work has been done with regards to the impact of human capital likely because it is
critical to the economic growth of Nigeria and among these works are the works of Ayuba
(2014) who tried to examine the causal relationship between human capital (immigration,
training, education, education and health) and economic growth in Nigeria within the period
1990 – 2009 using the VEC (Vector Error Correction) Model-Based Causality.
Furthermore, Ekesiobi, Dimnwobi & Mgbemena (2016) all carried out a study on government
education allocation and how such has impacted the quality of education in Nigeria. They
applied the ADF (Augmented Dickey-Fuller) unit root test and OLS (Ordinary Least Square
technique), to the study and discovered that investing in education by way of spending, has a
significant impact on quality of education and also impacts economic growth in Nigeria. An
increase in urban population or immigration also positively affects economic growth. From
what the study established, the research work advocates amidst other things, that government
needs to invest more in training and education to encourage economic growth in Nigeria.
Oladimeji & Ojewumi (2014), took the time to study the outcome of government financing on
the growth of education in Nigeria. They divided government financing on education into capital
financing and recurrent funding after which they applied the ordinary least square in reviewing
the relationship between economic growth and educational financing and discovered that
during the period of the study, impact of both recurrent and capital cost on the growth were
unfavorable in Nigeria. On that premise the Oladimeji & Ojewumi (2014), suggested that
government should put a check on corruption in the education sector to make sure that finances
meant for education like capital expenditure are well appropriated.
Ayodele, Ogwumike, Ebong, and Udongwo (2016) tried to appraise the impact government
capital expenditures has on economic growth in Nigeria employing Ordinary least square
multiple regression technique and an error correction mechanism. They discovered that the
government’s capital expenditures bear differential effects on economic growth that in the short
run or long impact are both positive and significant. Based on their findings, these authors
deduced that there is need to reinforce both the quality and viability of capital expenditures in
Nigeria to drive economic growth.
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3. Research Design and Methodology This section summaries the methodology of the work, the section includes the
methodology for a secondary data analysis and it comprises the methodological framework
which is of AK model employed by Nwodo and Ukaegbu (2017), it also comprises model
specification, model justification which justified the reason for including only two variable to
capture human capital, the chapter also comprises of estimation procedure, data collection
method, and analysis and ethical issues.
3.1 Model specification and justification
Based on economic expectations, human capital comprises a good number of variables like
education, health, training and development, migration, standard of living and lots of other
variables that affect human knowledge and labor. However, for the model stated in equation
below, attention is only paid to health and education expenditure due to the uniqueness of the
Nigerian environment such that there is no available time-series variable for migration, training,
and development for Nigeria in all the Nigeria database system check. Therefore, the
researchers are left with no other option than to only model health and education expenditures
as the only components of human capital in Nigeria. This explains the objective of the study and
the methodology adopted. we specify the models as follows:
LGDP=F(PS, FD, OPEN, EDUC, HEALTH)-
Stating in econometric form, we have
𝐿𝐺𝐷𝑃 = 𝛽0 + 𝛽1𝑃𝑆𝐶 + 𝛽2𝐹𝐷𝐼 + 𝛽3𝑂𝑃𝐸𝑁 + 𝛽4𝐸𝐷𝑈𝐶 + 𝛽5𝐻𝐸𝐴𝐿𝑇𝐻 + 𝜇
Where the variables are defined as
LGDP = log of GDP growth (a proxy to economic growth)
PS = Private Sector credit
LFD = log of foreign direct investment
OPEN= Trade openness.
EDUC= Government total Expenditure on Education
HEALTH = Government total expenditure on health
3.2 Data collection and analysis
The analysis will be conducted using annual data that covers the period from 1981-2015
will be employed for Nigeria. Data used for this study was sourced from Central Bank of Nigeria
(CBN) statistical bulletin and that of NBS which stands for the National Bureau of Statistics
which is the only statistical agency responsible for public statistics Nigeria. Eviews 9 will be
used to conduct all estimations in this study and the result will be interpreted as obtained.
3.3 Ethical issues
The researcher has to follow certain ethics in conducting secondary data analysis
regarding the use of data protection and subjects related to consent in secondary data analysis
(Thome, 2013). The researcher acknowledges the use of the data obtained from the Central
Bank of Nigeria data base and the bank is properly cited at the citation
4. Results and Discussion
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In this section, the researcher presents the empirical results and analysis based on the
specified models. As discussed earlier, before going ahead with estimation, researcher shall first
test for the stationarity of all the variables that will be used in the analysis to ascertain their
order of integration.
4.1 Descriptive analysis
Table 4.1 Description of the variables
LGDP PS LFD OPEN EDUC HEALTH
Mean 6.255503 17.47962 26.39824 4.621917 4.210374 7.209959
Median 6.170040 17.46379 26.69962 4.563321 4.192846 7.291061
Maximum 9.664712 17.80818 29.51049 5.048922 4.401949 9.730119
Minimum 2.724412 17.21817 22.81018 4.305837 4.062770 3.575225
Std. Dev. 2.188831 0.177570 2.169065 0.224898 0.093650 1.971498
Skewness 0.021567 0.305780 -0.283140 0.389115 0.523448 -0.384954
Kurtosis 1.818908 1.872049 1.913113 1.935082 2.272628 1.829276
Jarque-Bera 1.629644 1.920659 1.752330 2.029642 1.895907 2.290579
Probability 0.442718 0.382767 0.416377 0.362467 0.387533 0.318132
Sum 175.1541 489.4295 739.1507 129.4137 117.8905 201.8789
Sum Sq. Dev. 129.3565 0.851339 127.0307 1.365634 0.236798 104.9437
Observations
29 29 29 29 29 29
As can be seen in Table 4.1, GDP, OPEN, PS, LFD, EDUC, and HEALTH are normally distributed as
indicated by the result of Jarque Bera test on the table above. The null hypothesis that the
distribution is normal is not rejected at the 1% level, and at the 5% level for the rest of the
series. The mean and median which measures the descriptive statistics of the series are positive
and high above 100% for all the variables. This suggests real GDP, education expenditure, and
health expenditure especially at the beginning of each fiscal year were significantly positive. The
variables from the table also do not show evidence of fat tails, since the Kurtosis did not exceed
3 (interest rate) which is the normal value. But there is little evidence of negative skewness, in
log of foreign direct investment and health expenditure.
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4.2 Unit Root Test
Table 4.2: Summary of Philip Peron Unit root test result of the series
Variables Test Critical
Values (5%
Level)
Philip Peron
test stat
Order of
integration
LGDP -3.442712 -5.480220 I(1)
PS -3.552973 -3.934811 I(1)
LFD -3.448348 -5.181556 I(1)
OPEN -3.442712 -7.469010 I(1)
EDUC -3.562882 -7.905803 I(1)
HEALTH -3.562882 -8.523453 I(1)
Unit root tests and the order of integration
Table 4.2 presents the summary of the unit root test result for the series in levels and in the first
difference. The Philip Peron test was applied and the result indicates that all the variables were
non-stationary, since their absolute value of Philip Peron test statistic exceeded the critical
value only at first difference. Most of the variables became stationary at first difference,
therefore, we adopt the Johansson Co integration test to check for long-run relationship among
the variables.
4.3 Co-integration test result
Table 4.3 test of Cointegration
Series: LGDP PS LFD OPEN EDUC HEALTH
Lags interval (in first differences): 1 to 1
Unrestricted Co integration Rank Test (Trace)
Hypothesized Trace 0.05
No. of CE(s) Eigenvalue Statistic Critical Value Prob.**
None * 0.970476 208.9134 125.6154 0.0000
At most 1 * 0.790083 117.3270 95.75366 0.0007
At most 2 * 0.696223 76.73982 69.81889 0.0126
At most 3 0.608082 45.76178 47.85613 0.0776
At most 4 0.432378 21.40752 29.79707 0.3327
At most 5 0.225065 6.683725 15.49471 0.6147
From the results displayed in table 4.3 above, it can be rightly inferred that all the variables
adopted for the study exhibit a long-run cointegrating relationship. The null hypothesis of no
cointegrating relationships was clearly rejected at the 0.05% significance level for all the
variables in the two models for the Trace test and the Maximum Eigenvalue models. In each
model, the t-stats of both the Trace test and the Maximum Eigenvalue were greater than the
critical values at the 0.05% significance level. Since the variables exhibited a long-run
cointegrating relationship, we proceeded to estimate the Error Correction Model (ECM) to
correct for any disequilibrium that may arise among the variable in the short run.
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4.4 Estimation Long Run Coefficients
Table 4.4: Estimated Long-run Coefficients
(*) denotes Heteroscedasticity and Autocorrelation (HAC) consistent standard errors
** Denote significant at 5% level
Source: Authors computation using Eviews 9.0
Based on table 4.5, the long-run effect on economic growth in Nigeria with respect to
educational and health expenditure is positive. The long-run impact indicates that a unit
increase in educational expenditure in Nigeria increases GDP by 1021 percent, holding all other
factors constant. This result is ironically statistically significant. Also, the results indicate that a
unit increase in health expenditure in Nigeria increases economic growth by 11.5 percent, this
result is also significant.
From expectations, any increase in human capital is expected to positively affect the
growth of any economy as the increase will boost the manpower need of the masses and
increase productivity which will, in turn, increase the GDP of the nation. This is the view in
theory and economic literature on growth as propounded by Romer (2012).
Regressor Coefficient Standard
Error
t-Statistics
p-Value
Dependent Variable: GDP
PS 127.6499 142.0480* 0.898639 0.3790
LFD 7289.432 2819.166* 2.585669 0.0172**
OPEN -726.2735 62.35114* -11.64812 0.0000**
EDUC 1021.473 118.5258* -8.618146 0.0000**
HEALTH 11.57532 0.953801* 12.13600 0.0000**
C -65262.44 50139.85* -1.301608 0.2071
Notes: R2 =0.981617
Adjusted R2 = 0.976365
S.E of regression = 826.0169
F-statistics = 186.8967
Prob(F-statistics) = 0.0000
Durbin Watson = 2.522702
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Table 4.6: Short run Results and Diagnostics Tests results
Dependent Variable: LNAGOP
Regressor Coefficient Standard Error t-Statistics p-Value
D(PS) 303.2273 582.8037 0.520291 0.6089
D(LFD) 5840.502 5161.837 1.131477 0.2719
D(OPEN) -650.6561 140.6650 -4.625572 0.0002
D(EDUC) -916.6730 202.3932 -4.529168 0.0002
D(HEALTH) 10.21903 2.089027 4.891768 0.0001
C 45.10867 236.2897 0.190904 0.8506
ECM1(-1) -1.183180 0.283824 -4.168705 0.0005
Diagnostic Tests
Test F-statistics Prob. Value
2 SERIAL 1.853841 0.1839
Heteroskedasticity
Test:
Breusch-
Pagan-
Godfrey 1.699305 0.1706
2 REMSAY 1.699318 0.2072
Source: Author’s computation using Eviews 9.0
Table 4.6 above reports the result of the short dynamics of the impact of human capital on
economic growth in Nigeria. The negative statistically significant estimate of ECM(-1) validates
the established long-run relationship between human capital and economic growth in Nigeria.
The results also indicate that the estimate of ECM (-1) is -1.183180 and is statistically significant
at 5 percent level. This implies that about 110 percent of the deviations from long-run
equilibrium are corrected for in the next year period. The diagnostic test on the table also
indicates there is no problem with serial correlations, as the null hypothesis of serial correlation
is rejected; there is also no misspecification error. However, there is a problem of
heteroskedasticity in the model which was corrected by presenting Heteroscedasticity and
Autocorrelation (HAC) consistent standard errors
5. Conclusion
For this work, secondary data variables were obtained from the Central Bank of Nigeria
website and education expenditure and health expenditure were used as proxies for human
capital. The independent variables, which were used in this research, were education
expenditure, health expenditure, private sector credit, foreign direct investment, and trade
openness. Using an ordinary least square estimation technique, this research founded that
education and health expenditure impact positively on economic growth in Nigeria,
Objective 1:
To descriptive statistically education expenditure and health expenditure in the
economy of Nigeria. In this study it is found that the mean and median of education and health
expenditure in Nigeria are positive and high above 100% respectively showing that education
and health expenditure are positive at the beginning of each period. This is proof that the
Nigeria government has been following the global trend in increasing expenditure on education
and health due the expenditure is far below the recommended level.
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Objective 2
To estimate the impact of education expenditure on the growth of the Nigerian economy.
Here government expenditure on education a major component of human capital positively
impacts the growth of Nigerian economy. Empirical studies reviews that when there is increase
in educational expenditure, it will produce increase in educational outcome and boost the
manpower needs of the masses which will improve productivity and increase growth (Nwodo &
Ukaegbu, 2017). According to Odior (2014), education expenditure is a major factor in the
growth of every economy and therefore it should not be tampered with. This assertion is also
proved by the finding of this work. However, other studies in literature indicated that education
expenditure is not a significant variable in growth model. These studies include that of Edame
and Eturoma (2014), etc. are contrary to the findings of this work.
Objective 3
To estimate the impact of health expenditure on the growth of the Nigerian economy. This
research identified that health expenditure also positively affects economic growth in Nigeria.
Thus, health service quality is significant in the growth model of every economy as an increase
in the heath quality, increases the standard of living and productivity of an economy. However,
some previous studies had indicated that health has a vibrant impact on economic growth. This
result is in consonance with the findings of Lee, Anas, Verma, and Murray, (1996), Erbaykal
(2008) who found the positive link between human capital and sectoral output and contrary to
the findings of Soytas and Sari (2003) , Iwayemi (2008) and Okafor (2008) With a t-statistic of -
8.618146 and a p-value of 0.0000 for education expenditure and a T-statistics of 12.13600 and
p-value of 0.0000 for health expenditure, the coefficient of education and health expenditures
are statistically significant
5.2 Conclusion and Recommendations
It is recommended that: Government should continue to provide an enabling environment by
ensuring macroeconomic stability that will encourage increased investment in human capital
(such as education and health) by wealthy individuals in the economy and the private sector of
the economy. Expand institutional capacity by strengthening the infrastructure of educational
institutions to produce quality manpower. Teachers/lecturers' salaries and improved working
conditions in educational institutions should be accorded high priority by the government. The
effort of government on increasing primary school enrolment through the free Universal Basic
Education should be sustained. This could also be complemented by involving private and
religious organizations. E curricula used for educating and training should be reformed to
address the needs of the economy. There is a new challenge faced by educational system and
yesterday’s solution cannot solve it.
Also, the negative statistically significant estimate of ECM(-1) validates the established long-run
relationship between human capital and economic growth in Nigeria. The results also indicate
that the estimate of ECM (-1) is -1.183180 and is statistically significant at 5 percent level. This
implies that about 110 percent of the deviations from long-run equilibrium are corrected for in
the next year period.
5.3 Limitations
Due to the constraints of data availability, a bigger model that could cover migration, training
and their impact on economic growth could have been used. But, there is no time series
ISSN: 2289-4519 Page 318
variables for migration in Nigeria and there is no time series variables for training in Nigeria.
This motivates the adoption of just two variables as proxy for human capital. Time was a major
issue in this study, the researcher had a heavy workload from other and balancing this research
paper and responsibilities was a challenge. The other challenge of this research paper is its
finance to assess data; therefore, future studies may consider a fund provision.
5.4 Future research directions.
Research was conducted on the impact of human capital in Nigeria, which is a country and the
result cannot be used to generalize for the whole African continent, therefore, the further
studies can be carried out on the impact of human capital (education and health) on the growth
of African or Sub Saharan African economies. further researches could consider using different
measures of human capital instead of constraining it to education and health alone.
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