Journal of Economics and Development Studies

Public Investment in Human Capital and Economic Growth in Nigeria: Analysis on Regime Shifts
Adediran Idris Adekola

Abstract
This study contributes to existing literature by examining data on Nigeria between 1961 and 2012 to conduct a regime shift analysis of the empirical relationship subsisting between public investment in human capital and economic growth. The study ensured the validity of results by testing for the unit root properties and verifying cointegration among the variables before estimation. These verifications were conducted with the tools of Augmented Dickey Fuller test, Johansen’s Cointegration technique and Parsimonious Error Correction procedure. Empirical findings established the fact that federal and states governments’ spending on human capital (education and health) impacted positively on economic growth in Nigeria individually and collectively. The study also found evidence for democratic governments at both federal and state levels to engage in active development planning (as in the years 1960-1985 when government actively map out policies, programmes and projects towards achieving economic growth) and also restore the lost glory of agriculture which was displaced by the oil boom of the 1970s.

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