Financing human development for sectorial growth: a time series analysis
DOI:
https://doi.org/10.1515/tjeb-2017-0004Keywords:
Human capital, Development, Sectorial, Education, healthAbstract
The role which financing human development plays in fostering the sectorial growth of an economy cannot be undermined. It is a key instrument which can be utilized to alleviate poverty, create employment and ensure the sustenance of economic growth and development. Thus financing human development for sectorial growth has taken the center stage of economic growth and development strategies in most countries. In a constructive effort to examine the in-depth relationship between the variables in the Nigerian space, this paper provides evidence on the impact of financing human development and sectorial growth in Nigeria between 1982 and 2016, using the Johansen co-integration techniques to test for co-integration among the variables and the Vector Error Correction Model (VECM) to ascertain the speed of adjustment of the variables to their long run equilibrium position. The analysis shows that a long and short run relationship exists between financing human capital development and sectorial growth during the period reviewed. Therefore, the paper argues that for an active foundation for sustainable sectorial growth and development, financing human capital development across each unit is urgently required through increased budgetary allocation for both health and educational sectors since they are key components of human capital development in a nation.
References
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<p>Adelowokan, O. A. (2012). Growth effect of education and health expenditure in Nigeria. <em>Africa Journal of Scientific Research,</em> <em>10</em>(1), pp. 510-528</p>
<p>Amin, M., & Mattoo, A. (2008). Human capital and the changing structure of the Indian economy. <em>Policy Research Working Paper 4576 World Bank.</em></p>
<p>Ararat, O. (2007). Role of education and economic growth in Russian Federation and Ukraine. <em>Http://Mpra.Ub.Uni-Muenchen.De/7590.01.</em></p>
<p>Asteriou, D., & G.M Agiomirgianakis (2001). Human capital and economic growth: time series evidence from Greece. <em>Journal of Policy Modeling,</em> 481-489.</p>
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<p>Barro, R. J. (1996). Determinants of economic growth: a cross-country empirical study<em>. NBER Working Paper 5698.</em></p>
<p>Dauda, R. O. (2009). Investment in education and economic growth in Nigeria: A co-integration approach. <em>A paper presented at the 9th Global Conference on Business and Economics at the University of Cambridge, UK 16-17, 2009.</em></p>
<p>Dauda, R. O. (2010). Role of human capital in economic development: an empirical study of Nigerian case. <em>Oxford: Oxford Business and Economics Conference Program.</em></p>
<p>Dickey, D. A., & Fuller, W. A. (1979) Distribution of the estimators for autoregressive time series with a unit root. <em>Journal of the American Statistical Association 74</em>, 427-431.</p>
<p>Dickey, D. A., & Fuller, W. A. (1981) Likelihood ratio statistics for autoregressive time series with a unit root. <em>Econometrica 49</em>(4).</p>
<p>Ditimi, A., & Nwosu P. (2011). The impact of unemployment rate on productivity growth in Nigeria: An error correction modeling approach. <em>Journal of Economics of sustainable development, vol 4(</em>9).</p>
<p>Inuwa, N. (2012). Health expenditure and economic growth Nexus: an ARDL approach for the case of Nigeria. www.transcampus.org/journals,www.ajol.info/journals/jorind.</p>
<p>Isola, W.A., & Alani, R.A (2012). Human capital development and economic growth: empirical evidence from Nigeria. <em>Asian Economic and Financial Review</em>, 2(7), pp 813-827.</p>
<p>Jaiyeoba, S.V. (2015) Human Capital investment and economic growth in Nigeria, <em>Africa Research Review and International Multidisplinary Journal,</em> <em>Ethopia. 9</em>(1). No 6.</p>
<p>Keller, K. R. I. (2006) Investment in primary, secondary and higher education, and the effects on economic growth. <em>Contemporary Economic Policy 24</em>, 18-34.</p>
<p>Li, H., & Hung, L. (2009). Health, education and economic growth in China: empirical findings and implications. <em>China Economic Review 20,</em> 374-387.</p>
<p>Loening, J. (2002), Time series evidence on education and growth: the case of Guatemala 1951-2002. <em>Revista de Análisis Económico, 1</em><em>9</em>(2), 3-40.</p>
<p>Loof, H., & Heshmati, A. (2001). On the relationship between innovation and performance: a sensitivity analysis. <em>SSE/EFI Working Paper 446, Stockholm School of Economics.</em></p>
<p>Mankiw, G., Romer, D., & Weil, D. (1992). A contribution to the empirics of economic growth. <em>Quarterly Journal of Economics, </em>107: 407-437.</p>
<p>Mehrara., & Musai (2013) The causality between capital formation and economic growth MENA region. <em>International Letters of Social and Humanistic Science</em> 8(1), pp.1-7</p>
<p>Mcmahon, W. W. (1998). Conceptual framework for the analysis of the social benefits of lifelong learning. <em>Education Economics 6</em>(3), 309-346.</p>
<p>Muhammed A, Bilah, M., & Muhammed, S. (2012). Impact of human capital on economic growth with emphasis on intermediary role of technology: time series evidence in Pakistan. <em>African Journal of Business Management, 6,</em> 280-285.</p>
<p>Nurudeen A., & Usman, A. (2010). Government expenditure and economic growth in Nigeria: a disaggregated analysis.<em> Business and Economic Journal, 6</em>(20), 23-40</p>
<p>Ngutsav, A., Akighir, D.T., & Lorember, P.T (2017). Education financing, labour productivity and economic development in Nigeria. <em>Advance Studies in Economic and Public Sector Management. 5</em>(1). <em>22-39.</em></p>
<p>Odo, S. I., Eze, O. R., & Onyeisi, S. O. (2016). Analysis of the relationship between human capital development and economic growth in Nigeria. <em>European Journal of Accounting, Auditing and Finance Research, Vol 4</em>(3), 56-71.</p>
<p>Osoba, A.M., & Tella, S.A .(2017). Human capital variables and economic growth in Nigeria. <em>EuroEconomica, 36</em>(1).</p>
<p>Qian, X., & Smyth, R. (2005). Growth Accounting for the Chinese provinces 1990-2000: incorporating human capital accumulation. <em>Department of Economics Discussion Paper</em> 11</p>
<p>Rehman, K., & Khan, J. (2012). The Contribution of education to economic growth: evidence from Pakistan. <em>International Journal of Business and Social Science 4</em>(3), 145-151.</p>
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<p>Sen, A. (2002a). <em>Basic education and human security. </em>Commission for Human Security, UNICEF, the Pratichi (India) Trust, and Harvard University<em>.</em></p>
<p>Sen, A. (2002b). <em>Rationality and freedom</em>. Cambridge and London: Harvard University Press.</p>
<p>Sen, A. (2009). <em>The idea of justice</em>. London: Penguin<em>.</em></p>
<p>Shobande, A. O., Odeleye, A. T., & Olunkwa, N. C. (2014). Human capital investment and economic development: the Nigerian experience. <em>World Journal of Social Science, 1</em>(2)</p>
<p>Smith, A. (1776). <em>An Inquiry into the nature and causes of the wealth of nations. </em>5<sup>th</sup> Edition, London: Methuen & Co Ltd.</p>
<p>Solow, R. (1956). A contribution to the theory of economic growth. <em>Oxford Journal of Economics, </em>65-94.</p>
<p>UNDP. (1990). <em>Human Development Report 1990: Concept and Measurement of Human Development</em><em>. </em>New York, Oxford University Press.</p>
<p>UNDP. (1992). <em>Human Development Report 1992: Global Dimensions of Human Development</em><em>. </em>New York, Oxford University Press.</p>
<p>UNDP. (1993). <em>Human Development Report 1993: People's Participation</em><em>. </em>New York, Oxford University Press.</p>
<p>UNDP (2012). <em>Human Development Report. </em>New York, Oxford University Press.</p>
<p>UNDP (2015). <em>Human Development Report. </em>New York, Oxford University Press.</p>
<p>UNDP (2016). <em>Human Development Report. </em>New York, Oxford University Press.</p>
<p>United Nations (2015) <em>Transforming Our World: The 2030 Agenda for Sustainable Development.</em></p>
<p>World Development Indicator (2016) <em>World Bank Data</em>, World Bank Group.</p>
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2017-12-01
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Financing human development for sectorial growth: a time series analysis. (2017). Timisoara Journal of Economics and Business, 10(1), 51-67. https://doi.org/10.1515/tjeb-2017-0004
