Critical Review of Published Articles
According to the syllabus, MGMT 650 students are
… required to complete a critical review of one research orientated journal article. The article will be selected by the student with approval of the instructor from peer-reviewed journals in an area of interest to the student. The article reviewed will use descriptive statistics that the student has been exposed to in the first 4 – 6 weeks of this course. Students will choose articles to review from UMUC’s library resources.
For the article, students may select a topic of their interest. The empirical research article, “Academic procrastination and statistics anxiety” used for Sessions 1 and 2 Discussion assignments (see Conferences section), is an example of a
descriptive statistical
research article. In addition, the students are encouraged to use UMUC’s
Library
to locate an empirical research article. Finally, the instructor of the course must approve the article. Students should upload the pdf version of the article in the Workbook section of the online class.
Empirical Research Articles
If you never read an empirical research article, the following web sites will help you to understand the difference between a primary empirical research article and a secondary article:
1.
http://www.nsu.edu/library/pdf/EmpiricalResearch
2.
http://www.up.edu/showimage/show.aspx?file=12944
APA
Writing Style
To help with the organization of the critique information in the 5- to 7-page report, the students are required to use APA format 6th edition with headings and subheadings.
Critique Report Format
The critique report format was adapted from the University of Michigan web site:
http://open.umich.edu/sites/default/files/Topic8Assignment-CritiqueArticle
.
1. Title page, which includes (a) title of the empirical research article and author’s name(s), (b) your name, (c)
Turnitin
reliability index score, (d) running head with continuous page numbers, and (e) date. The title page does not count towards the 5- to 7-pages for the critique report.
2.
Problem statement and purpose
(Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. What were the purpose and/or problem of the research study?
b. What are the
independent and dependent variables
of the study? Correctly, identify the independent and dependent variables.
3.
Review of literature
and theoretical framework (Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. What concepts/theories are included in the review? Please explain them.
b. Did the author discuss the independent and dependent variables? If so, provide examples from the literature review.
4.
Hypotheses
and/or
research questions
(Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. What hypothesis/hypotheses and/or research question(s) are stated in the study?
b. Is the hypothesis(es) or research question(s) testable? Please explain.
5. Sample population (Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. How was the sample selected? Please explain.
b. Which
sampling method
was used (probability or nonprobability)? Please explain.
c. Was the sample size appropriate? Please explain.
d. What are the limitations of the sample population? Please explain.
6.
Research design
(Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. Which type of research design was used? Please explain.
b. Does the research design support the hypothesis(es) and/or research question(s)? Please explain.
7. Data collection (Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions:
a. How was the data collected? Please explain with example(s).
8. Analysis of data. (Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions: What
level of measurement
was used to measure the variable(s)? Please explain. Which descriptive statistical was used for calculation? Please explain with example(s). If tables and/or figures were used, did they appropriately illustrate the statistical results of the collected data? Please explain.
9. Conclusion/Discussion. (Answer the following questions; however, do not write the questions in the report.) In addition, from the empirical research report, include the page number(s) to answers the questions: Was the hypothesis(es) and/or research question(s) supported or not supported? Please explain. What were the
validity threats
to the study? Please explain.
10. Recommendations. If you were to conduct the study, please explain the changes you would make to strengthen the validity of the study.
11. Reference section. This section only applies if you cite other sources in the critique report. In addition, the Reference section does not count towards the required 5- to 7-page for the critique report.
EuropeanJournal of Economics, Finance and Administrative Sciences
ISSN 1450-2275 Issue 27 (2010)
© EuroJournals, Inc. 2010
http://www.eurojournals.com
A Quantitative Analysis of the Role of Human Resource
Development in Economic Growth in Nigria
Owolabi S. A
Department of Accounting, Babcock University, Nigeria
E-mail: emailagba05@yahoo.com
Okwu A. T
Corresponding Author, Department of Economics
Banking and Finance, Babcock University, Nigeria
E-mail: aokwu@yahoo.com
Abstract
This study has examined the role of human resource development in economic growth in
Nigeria. The study employed quantitative analysis approach. The study considered human
resource development from education and health perspectives. The variables considered
appropriate indices for human resource development were government expenditures on
education and health, primary education enrolment rate, secondary education enrolment
rate, tertiary education enrolment rate and gross domestic product. The major tool of
analysis is a multiple regression analysis model specified on the basis of perceived
functional relationship between human resource development and economic growth in
Nigeria. Treating gross domestic product as the explained variable and the others as the
explanatory variables, a multiple regression model of was specified to forge a link between
the two variable sets. With secondary data on the above variables, the model was estimated
via ordinary least squares (OLS) techniques, and evaluated based on relevant data from the
regression output. The result showed that only secondary and tertiary education enrolment
rates exerted statistically significant effect on economic growth in Nigeria. The others
exerted positive but insignificant effect on economic growth. However, the explanatory
variables jointly exerted significant effect on growth. In addition, the model exhibited high
explanatory power and indicated absence of first order serial correlation in the explanatory
variables. Based on the findings, the study concluded that a clear-cut and obvious
relationship existed between human resource development and economic growth and, thus,
recommended for intensified effort in human resource development in Nigeria such as
adoption of planned strategies in education and health sectors and increased budgetary
allocation to the sectors.
Keywords: Human resource development, Education, Health, Economic growth.
1. Introduction
Investment in human capital plays an important role in increasing competitiveness, improving quality
if life of the population and in generating economic growth and development of a country. Currently,
Nigeria wishes to be among twenty most developed countries in the world by Year 2020. To give
effect to this, one of the pre-requisites is to ensure that capable manpower is available in various areas
of social, political, institutional, technological and economic endevours which drive the process of
8 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
growth, development and industrialization. Consistent with the NEEDS programme of 2004, and the
current Vision 20 2020 development programme agenda, the country’s human resource development
needs to be strengthened and stabilized in order to accelerate economic activities and trigger off higher
productivity, income and economic growth and development. The nation’s aspiration to be in the
league of 20 leading economies in the world by Year 2020 emerged on the realization that the
endowment of Nigeria in material and human resources places her in good position to achieve this
greatness. But the Human Development Report of UNDP (2008) shows that Nigeria is still at the low
level of human development compared to countries in emerging economies. This is worrisome and
posses a threat to 20 2020 agenda.
Education, as a measure for quantity, availability and human resource quality is the sole method
which can be used to analyze the impact of human resource on economic growth (Benhabib and
Spiegel, 1994). To many people, capital is in the form of bank account, financial and other income-
generating physical assets. Jhingan (2005) points out that in the process of economic growth, it is
customary to attach more importance to the accumulation of physical capital than human capital. These
physical resources are forms of capital. But aside these tangible capital resources are human capital
resources as an aggregate of education or schooling, training and health care delivery. These
aggregation of human resource development can further increase productivity, income, improve health
and fitness, good habits in individuals such as being trustworthy and responsible. Therefore, education
and training are the most important factors in human resource development. Economists often use the
term human capital for education, health and other human capabilities that can enhance productivity
(Todaro and Smith, 2003). Thus, quality of human resources connotes the state of education, health,
and other human capabilities that can raise productivity when increased.
Studies in the United States of America have shown that high school and college education lead
to improvement in earnings even after taking into consideration the direct costs (study fees, cost of
purchasing books and other materials) and indirect costs (foregone income from being employed)
during schooling. Studies in several other countries with different cultural and economic systems also
showed the same outcome that income obtained by educated people will always be above the average
income level. Furthermore, growth continuum per capita income of a country is partly dependent on
scientific and technical knowledge development, which further improves productivity of labour and
other inputs in production. In fact, economic growth is also closely connected with new knowledge
drive and also quality of human resource. This is obvious from the fact that there have been
tremendous achievements in education accompanied with major development in technological
knowledge in all countries which have achieved significant economic growth. Leading economic
record for countries like Japan, Taiwan and a few more Asian countries, for example, show the
importance of human resource development in playing its role in leading
economic growth.
Lawanson (2009) points out that health and education are two closely related human [resource]
capital components that work together to make the individual more productive. Hence, taking one
component as more important than the other is unrealistic as a more educated individual, who is ill, is
as inefficient as an illiterate but healthy individual. Therefore, both components are equally important
because of their close relationship.
This study considers education and health as the two important components of human resource.
Consequently, the main objective of this study is to analyze the role of human resource development
through education and health in economic growth in Nigeria via a quantitative approach and, thus,
proffer relevant policy recommendations on how to transform and launch the Nigerian economy
among the league of 20 leading economies in the world by the Year 2020.
Conceptual Clarification
Health and education have been described as different from other types of goods produced in societies.
Appleton and Teal (1998) describe health and education as components of human resource that are
contributors to human welfare. Lawanson (2009) observes that while incomes may be conducive to
health, it cannot be directly purchased like other material goods and services. Health and education are
9 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
often subsidized by the state. In some countries, education is compulsory for certain minimum length
of time. The Webster’s Dictionary (1988) defines human resources as persons available for some
purposes, regarded as one of the resources of a nation, industry, etc. This definition sees people as
resources that are available for utilization in various sectors of any economy in its growth and
development process and sustainability. Perhaps, human resource development may be conceptualized
as the process of actualizing optimal usefulness of human capabilities. Aigbokhan et al (2007) see
education as a basic and obvious process by which skills, knowledge and attitude are acquired for the
performance of socio-economic responsibilities, social integration, improving personal competence,
and seeking better opportunities. Economic growth is increase in a country’s output over a period of
time. Thus, it is the increase in output of Nigeria over time.
2. Literature Review
The role of human resource in encouraging economic progress has been acknowledged in many
studies. Human resource has been indentified not only as a major growth determinant and a channel to
ease poverty but it is also very important in building or improving the quality of human beings in
general (Kasim et al, 2010). The growth focus in Millennium Development Goals (MDGs) is more
concentrated at the importance in achieving clear and real progress as an indicator or human capital
indicator measured through educational foundation. Most studies have examined the effect of
education through human capital investment on economic growth.
The inter-relationship between human resource and economic growth has extensively been
discussed in the literature. Ramirez and Stewart (1998) explain that although there are bilateral ties
between human capital resource and economic growth, specific factors to link them still lacks in the
aspect of systematic exploration. In their study, they show that high level human resource capital
development will affect the level of the economy through population’s increase in their capacity,
productivity and creativity. The population’s education will determine their ability to absorb and
organize all economic growth resources such as technology usage or technological innovation.
A study conducted in Indonesia examined the inter-relationship between human capital
development and economic growth from the economic crisis experienced in the country. In the study,
Akita and Alisjahbana (2002) explain that areas having quality of human resource are able to cope
better when facing an economic crisis. In his study, Wibisono (2001) included variables such as
educational attainment which is measured as successful completion of educational level, life
expectancy, fertility rate, infant mortality and rate of inflation. Result of his analysis shows that
positive influential variables towards economic growth are education, life span and infant mortality.
The study shows that human capital, in the form of education especially, is the most important
contributor to economic growth. According to Wibisono (2001) the Indonesia Human Development
Report also confirms that there indeed exists a bilateral tie between human capital development and
economic growth.
Mankiw et al (1992), Barro and Sala-I-Martin (1995) and Barro (1996a, b) in their studies
found that schooling periods or education correlates positively with economic growth. The studies also
show that, by using a more detailed filter measure on skill, a country whose literacy level is as much as
1% higher than the average experiences an increase of as much as 1.5% in gross domestic product
(GDP) growth per capita. In his study, Barro (1996a) showed that the difference in human capital
financing can explain most of the productivity inequality between many areas in Germany. The study
shows that, on average, schooling caused about 30% productivity gap between states, and that
schooling or education particularly plays an important role in comparing productivity of states in cities
like Berlin, Bremen and Hamburg. Although physical capital such as machines and the like has
important links with productivity, it is still not as important when compared to human capital. The
study further shows that education has a significant positive effect on individual’s wage; an additional
year of schooling period led to an increase of 7.8% to the average individual wage. This implies that
investment in human resource development through education is an important contributor to the
10 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
concentration of productivity level which will further lead to growth and progress of the national
economy compare to investment in physical capital.
Various views support this. For instance, human capital theory and approach to the rate of
return has proven that education has the ability to enhance the productivity and income of an individual
and further encourage economic growth. Also, macroeconomic growth models such as the endogenous
growth model, Solow’s model and Harrod-Domar model, mention the importance of education in
economic growth process of a nation. Obviously, education has big influence on income distribution.
Several studies have shown that educational attainment is among important factors which differentiate
income between classes in a society.
Aside its direct impact on economic growth and development in terms of rate of return and
human-physical capital intensity, human resource development through education also has some
indirect effects. These manifest in quality of health and nutrition, fertility and children’s schooling and
cognitive development. In this regard, World Fertility Surveys (WFS) and Demographic and Health
Surveys (DHS) by World Bank as cited in (Hobcroft, 1993) shows that children in developed
countries, whose parents are educated, face very low premature death risk. Also, a socio-economic
study by Mackinnon (1995) shows that educated parents usually will report their children’s health
condition to health experts. The study found that, in Uganda, an educated mother is able to understand
easier and has more access to information on diseases, and such information results to low death rate
among children.
A recent study by Mansur et al (2009) found that education provides better employment
opportunities and, thus, increases the level of income of an individual. Therefore, education is
perceived to be an important factor in human capital formation. The study also found that a correlation
exists between education investment among women and fertility. In Africa, educated women are able
to get higher wages, and tend to have educated children. Conclusively, the research by the DHS as
cited in Hobcroft (1993) shows that the inter-relationship between education and fertility differ
according to education levels whereby there is a negative relationship for women who complete
secondary school education and fertility.
Health and Education as Components of Human Capital Resource
Adequate recognition has not been given to the health component of human capital resource. Even in
class sessions on economic development, discussions usually do not emphasize health as a component
of human resource development. Schultz (1961), as cited in Lawanson (2009), saw human capital as
those resources that are inherent in each human being, which can be traded between the users and the
owners to improve their respective living conditions. He outlined these inherent resources in human
beings to include knowledge (knowing what to do), skills (knowing how to do what is to be done), and
attitude (behavioural demonstration of a favourable inclination while doing that which is to be done).
No mention is made here of health (Lawanson, 2009). Barro (1991), in a study on the effects of human
capital on growth used data sets pertaining to very diverse array of countries. His was a narrow flow of
human capital such as school enrolment rates at the primary and secondary level. Human capital can
thus be regarded in either of two ways: the narrow sense which deals with just education, or the broad
sense which adds health to the education component.
Jhingan (2005) points out that it has become conventional to discuss human capital in its
narrow sense because expenditure on education and training is easily measurable when compared to
healthcare. In spite of this, healthcare is included in this study because of its significance in human
resource development process. Aigbokhan et al (2007) see education as a basic and obvious process by
which skills, knowledge and attitude are acquired for the performance of socio-economic
responsibilities, social integration, improving personal competence, and seeking better opportunities.
According to Leeuwen (2007), human capital is formal and informal education, yet it can also contain
factors such as the costs of raising children, health costs, and ability. He observes further that the health
and education components are recognized, although education comes ahead of health, showing the
priority placed on it. Similarly, Igun (2006) defines human capital as ‘the total stock of knowledge,
11 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
skills, competencies, innovative abilities possessed by the population’. These obviously have education
as their bedrock.
Education and Health Investment as a Human Resource Development Process
The economic rationale for investing in human resource derives from the belief that human resource
plays a key role in the process of economic growth. Todaro and Smith (2003) emphasize that human
capital must be given direct attention in its own right, even in emerging economies.
This clearly shows that the importance of this key concept centres not on just developing
countries aspiring to break free from their vicious cycle of underdevelopment, but also developed
countries in pursuit of sustainable growth and development.
One of the early researchers in the area of relevance of human capital resource in growth
process, Schultz (1961), identifies five ways by which human resource can be developed to
include:
Health facilities and services, On-the-job- training, formally organized education at the elementary,
secondary, and higher levels, study programmes for adults that are not organized by firms, including
extension programs notably in agriculture, and migration of individuals and families to adjust to
changing job opportunities.
The essence of the above is to make the individual more productive and enhance growth. Thus,
investment in health and education (the two components of human capital) leads to the development of
human resource. In this regard, Jhingan (2005) explains that in its wider sense, investment in human
capital means expenditure on health, education and social service in general; and in its narrower sense,
it implies expenditure on education and training. The development of human capital transcends mere
acquisition of intellectual ability through the education system, or the living of a healthier life through
adequate healthcare. It seeks to improve the productivity of the individual and make him more useful
to society. Aigbokhan et al (2007) describe it as being concerned with the transformation of the total
man to enhance his productivity. This indicates a necessity for the said investment to lead to increased
productivity.
Human Resource Development in Nigeria
The importance of investing in education and health is well appreciated and understood in economies
that aspire to attain sustainable growth. Any country that does not pay a special attention to human
resources development should not expect to grow and development. In other words, any country that
wants to develop should not ignore the quality of her human resources. Indeed, the importance of a
prime sector such as education has been stressed in Nigeria since the early sixties following the
submission of the Ashby report in September 1960. In recent times the importance of human resource
development for Nigeria has been stressed if the country has to be efficient and competitive in the new
world order in which national frontiers no longer constitute barriers to human, material, and capital
flows. Capacity building still remains the greatest challenge facing Nigeria in this millennium.
As explained by Ogujiuba and Adeniyi (2005), the Nigerian government primarily controls
education. The breakdown of this control is from the federal to the state and the local government
level. Lawanson (2009) explains that the federal government is primarily responsible for the tertiary
institutions although some states and private individuals also fund and run this level of education.
Secondary education is mainly a state responsibility although there are some federal secondary schools.
Primary education is a local government responsibility but there also exists a National Primary
Education Commission (NPEC) that draws up the curricular for corporate bodies, individuals, religious
organizations, international agencies, non-governmental agencies and community-based organizations
with the three tiers of government. The National Policy on Education (NPE, 1988), as cited in
Lawanson (2009), enunciated the importance of higher education in national development in Nigeria to
include:
i. Contribute to national development through high-level manpower training.
ii. Develop and inculcate proper values for the survival of the individual and the society.
12 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
iii. Develop individual’s intellectual capacity to understand and appreciate their local and
external environments.
iv. Acquire both physical and intellectual skills, which will enable individuals to be self-
reliant and useful members of the society.
v. Promote and encourage scholarship and community service.
vi. Forge and cement national unity.
vii. Promote national and international understanding and interaction.
Lawanson (2009) points out that these set goals are expected to be achieved by tertiary
institutions through teaching, research and development, sustainable staff development programs,
generation and dissemination of knowledge and a variety of modes of programs.
Aigbokhan et al (2007) note that a cursory look at the magnitude and trend of increases in
allocation might be misleading in passing judgment on the budgetary performance until they are placed
side by side with their percentage allocations. The characteristic pattern of the government’s allocation
to education and health in Nigeria as a percentage of the total budget revealed inconsistency. That is,
health and education expenditure were not considered as policy targets in the overall budgeting, or else,
they would have maintained an increasing proportion of the yearly budget of the nation (Lawanson,
2009).
Lawanson (2009) further observes that the National Economic Empowerment and Development
Strategy (NEEDS), which is presently Nigeria’s development plan and poverty Reduction Strategy
Paper, stipulates a goal of increasing government’s budgetary allocation to health and education from
8% to 10% between 2004 and 2007. While listing selected targets, education and health are rightfully
noted as worthy of closer attention. NEEDS is to address the crucial issues to improve education
infrastructure, expand institutional capacity to produce quality manpower, and expand total school
enrolment, etc. The health sector is next for which specific sectoral strategies include redefinition of
the roles and responsibilities of the Federal Ministry of Health (FMoH) and other Federal public health
structures and institutions in the provision and financing of quality services to Nigerians, review of
existing health policies and strategies as well as health legislations culminating in the publication of a
new National Health policy and the enactment of health system and the health functions of each of the
three levels of government, intensification for the campaign of the eradication of harmful traditional
practices such as female genital mutilation and child marriage, etc.
3. Methodology
In an attempt to determine the effect of education and human resource development on economic
growth in Nigeria, it is necessary to develop a model of the link between the variable sets in order to
justify the correlation that exists between them. Consequently, a linear multiple regression model is
specified from the perceived functional relationship between human resource development through
education and economic growth. Relevant variables that go into the model are Gross domestic Product
(GDP) as a proxy for economic growth, Government’s Expenditures on Health (GEH), Government’s
Expenditures on Education (GEE), Primary School Enrolment Rate (PER), Secondary School
Enrolment Rate (SER), and Tertiary Institutions Enrolment Rate (TER), all as proxies for education
and human resource development in Nigeria. GDP as proxy for economic growth reveals the overall
contribution of each sector of the economy. GEH, GEE, PER, SER, and TER are considered
appropriate as proxy for human resource development because the concept entails human resource
development through investment in education and health.
Model Specification
Theoretically, the model says that Economic Growth, using GDP as a proxy, depends on Government’s
Expenditure on Health (GEH), Government’s Expenditure on Education (GEE), Primary School
13 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
Enrolment Rate (PER), Secondary School Enrolment Rate (SER), and Tertiary Institutions Enrolment
Rate (TER). Thus, the functional relationship is:
GDP = f(GEH, GEE, PER, SER, TER).
The multiple linear regression model of the functional relationship is:
GDP = λ0 + λ1GEH+ λ2GEE + λ3PER + λ4SER + λ5TER + µ
where λ0 is Level of economic growth obtainable when the respective explanatory variables assume
zero value.
λ1, λ2, λ3, λ4, λ5 are slope coefficients of the respective explanatory variables. Each captures the
relative impact of the explanatory variables on the response variable.
µ is stochastic or random variable to accommodate the influence of other determinants of
economic growth that not included in the model.
On estimation, the intercept and slope coefficients are expected to have positive sign. That is,
positive economic growth is expected at zero value of GEH, GEE, PER, SER and TER. Also, GDP is
expected to correlate positively with each of GEH, GEE, PER, SER, and TER. That is λi (i = 1, 2, 3, 4,
5) > 0.
Model Estimation, Evaluation and Test of Research Hypothesis
For estimation and evaluation of the estimates of model parameters and test of research hypothesis,
data relating to the above variables are collected. The model parameters are estimated via the ordinary
least squares (OLS) techniques. Estimation is facilitated by use of statistical software programme –
Econometric Views (E-Views). Evaluation of parameter estimates and test of research hypothesis is
based on relevant statistics from regression result. The hypothesis below is tested on the basis of the
quantitative statistical analysis in this study.
H0: Human resource development through education and health has not played any
significant role
in economic growth in Nigeria.
H1: Human resource development through education and health has played a significant role
in economic growth in Nigeria.
Data for Quantitative Analysis
Table A: Data for Quantitative Analysis
Year GDP GEE GEH PER SER TER
1983 49632.9 1,549.8 302.5 12.12 1.53 0.09
1984 50456.1 984.6 248.2 13.76 2.23 0.11
1985 51653.4 1,135.1 286.0 14.29 2.50 0.13
1986 56312.9 967.4 279.6 14.68 3.23 0.15
1987 62474.2 861.2 190.2 14.39 3.47 0.17
1988 70633.2 850.2 223.9 13.03 2.99 0.19
1989 71859.0 1,094.8 360.4 12.91 3.09 0.20
1990 106183.0 653.5 236.4 11.54 2.93 0.21
1991 142618.0 1,084.1 443.2 12.69 2.94 0.23
1992 220200.0 1,941.8 452.6 12.72 2.73 0.24
1993 271908.0 2,294.6 685.1 13.60 2.95 0.31
1994 316670.0 1,554.2 757.0 13.78 3.12 0.27
1995 536305.1 2,060.4 1,025.4 14.81 3.60 N/A
1996 688136.6 7,999.1 2,684.5 15.91 4.15 0.38
1997 904004.7 10,283.8 3,027.8 16.83 4.50 N/A
1998 1934831.0 12,728.7 5,060.9 17.99 5.08 0.39
1999 2703809.0 15,351.8 4,851.5 19.79 5.39 0.69
2000 2801972.6 15,944.0 5,822.2 20.39 5.58 0.86
2001 2721178.4 26,721.3 11,984.3 22.47 5.80 0.94
2002 3313563.1 31,563.8 16,180.0 23.71 6.06 0.98
2003 4727522.6 67,568.1 18,181.8 24.90 6.36 1.03
2004 5374334.8 59,744.6 44,651.5 27.38 7.00 1.14
14 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
2005 6232243.6 109,455.2 63,171.2 29.58 7.49 1.23
2006 6061700.0 79,436.1 39,685.5 26.92 7.09 1.27
2007 11411066.9 93,767.9 59,787.4 28.14 6.75 0.42
Sources: CBN Statistical Bulletin (2007) C.B.N Annual Reports and Statement of Accounts (several years), F.M.E
Statistics of Education (various editions), NBS Annual Abstract of Statistics (various issues).
4. Quantitative Analysis and Discussion of Result
The estimated stochastic model and relevant statistics for evaluation are as shown below. Coefficients
of explanatory variables are estimates of model parameters (See Appendix II Table B). Estimation is
based on data in Table A (see Appendix I) while evaluation is based on relevant statistics.
GDP = -4953237 + 32.05459GEE + 10.39450GEH + 277801.5 PER + 797074.6SER – 4466373TER
SE: (24.42077) (37.21914) (174194.4) (414110.3) (1176983)
T-statistic: 1.312596 0.279278 1.594779 1.924788* -3.794762*
Prob.(t-
Statistic)
(0.2068) (0.7834) (0.1292) ( 0.0712) (0.0014)
R
2
= 0.938174 R
2
= 0.919990 F-statistic =
51.59314
Prob(F-Statistic) =
0.000000
Durbin Watson stat
= 1.396384
*Significant at 5%
Source: Regression Output
Interpretation of Result
Coefficients of the explanatory variables are consistent with expectations except for the constant (λ0)
and the coefficient of Tertiary Education Enrolment (TER). The estimated model suggests the
possibility of negative growth when each of the explanatory variables assumes zero value. This is
meaningless within the context of this analysis. Coefficients of GEE, GEH, PER, and SER
respectively, indicate that each exerts positive effect on economic growth. That is, human resource
development through education (GEE, PER and SER) and health has a positive impact on economic
growth, while TER exerts a negative effect on economic growth. This is expected to be in the interim,
i.e., during tertiary education training period.
When tested for significance, the effects of SER and TER on economic growth are statistically
significant as evidenced by the t-statistic values of 1.924788 and -3.794762 and their corresponding
probabilities of 0.0712 and 0.0014, respectively. However, the joint effect of the explanatory variables
on the explained variable is statistically significant as the value of F-Statistic (51.59314) with
corresponding probability (0.000000) indicates.
The R-Square of 0.938174 indicates that the explanatory variables explain about 93.8% of
changes in the dependent variable. The explanatory power of the model still remains high at about 92%
after adjusting for the degrees of freedom as shown by the adjusted R-Square value of 0.919990.
The Durbin-Watson statistic, which is 1.396384, falls within the acceptance level to conclude
absence of first order serial correlation.
Consequently, the result can be adjudged good and reliable as the overall effect of the
independent variables on the dependent variable is statistically significant. This is more so as the
variables explain greater proportion of the changes in economic growth in Nigeria over time. Thus, it
can be concluded that human resource development through education and health has played a
significant role in economic growth in Nigeria. Therefore, the result is reliable for policy formulation
and forecasting purposes.
5. Conclusion and Policy Recommendations
Based on the quantitative exploration of the relationship between human resource development through
education and health, and the findings thereof, this study concludes that there is a clear-cut and obvious
15 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
relationship between human resource development through education and health and economic growth
over time. Also, government’s expenditure on education and health and school enrolment at various
levels jointly exert significant effect on economic growth.
However, the contribution of human capital development to economic growth in Nigeria has
been less than satisfactory and there is much room for improvement. The education and health sectors
need increased government funding in order to further enhance their role in the growth process.
Further, the government has the major responsibility of providing quality education and satisfactory
health care delivery, with the private sector playing a complementary role.
Genuine action to back meaningful human resource development effort needs to be put in place
to give effect to the importance of human resource development noted in the past and present national
plans of the country.
Based on the above conclusion that human resource development through education and health
enhances economic growth, and the finding that the contribution of human resource development to
economic growth in Nigeria though significant has been less than satisfactory, though significant, the
study recommends as follows:
The government should adopt planned strategies in the education and health sectors as
highlighted in the NEEDS document.
The government should increase budgetary allocation and stimulate more funding channels to
education and health sectors of the economy. At least, the government should adopt the ten percent
benchmark recommended by NEEDS.
More encouragement should be given to the private sector to increase its participation in
provision of education and health services to the people. This can come in the form infrastructure and
government-private sector partnership in the areas of research funding, diversification into science and
technology-driven knowledge acquisition, dissimilation and application. There is also the need to
improve on the pay package of the health workers and teachers at all levels of education.
Further, there is the need for actual implementation of the free basic education (UBE) and
health care programs of the federal and state governments. Also, enabling enabling environment of
macroeconomic stability should be engendered by the government and other stakeholders to encourage
investment in human capital by the private sector and the public sectors.
Finally, the government should institute a genuine effort to fight corruption iin all its
ramifications. This calls for transparency, morality, ethical value and accountability on the part of
public office holders.
16 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
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17 European Journal of Economics, Finance and Administrative Sciences – Issue 27 (2010)
Appendix
Dependent Variable: GDP
Method: Least Squares
Date: 07/20/10 Time: 10:41
Sample: 1983 2007
Included observations: 23
Excluded observations: 2
Variable Coefficient Std. Error t-Statistic Prob.
C -4953237. 1683349. -2.942490 0.0091
GEE 32.05459 24.42077 1.312596 0.2068
GEH 10.39450 37.21914 0.279278 0.7834
PER 277801.5 174194.4 1.594779 0.1292
SER 797074.6 414110.3 1.924788 0.0712
TER -4466373. 1176983. -3.794762 0.0014
R-squared 0.938174 Mean dependent var 2149607.
Adjusted R-squared 0.919990 S.D. dependent var 2929430.
S.E. of regression 828619.5 Akaike info criterion 30.31237
Sum squared resid 1.17E+13 Schwarz criterion 30.60858
Log likelihood -342.5922 F-statistic 51.59314
Durbin-Watson stat 1.396384 Prob(F-statistic) 0.000000
Source: E-Views Regression Outpout
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