Human Capital Investment for Inclusive and Sustainable Economic Development: The Nigerian Experience

Abstract

Shift from MDGs to SDGs agenda serves as a spur to member countries to consolidate their gain in MDGs in further pursuit of SDGs. Predicated on inclusion and sustainable course, SDGs agenda have wider implications for achieving sustainable development through full mobilization of target population. From this perspective, the study focused on detailed analysis of impact of human capital investment on economic development. Data were analyzed using OLS technique. Two models employed, allowed for variation of gross domestic product per capita and infant mortality rate as proxies for economic development to control gross domestic product. Results indicate that: (1) Government recurrent expenditure on education, government capital expenditure on education and government capital expenditure on health impacted positively on gross domestic product per capita while government recurrent expenditure on health impacted it negatively. (2) All components of human capital investments, except government recurrent expenditure on health, had positive significant impact on infant mortality rate. (3) Infant mortality rate was more reliable than gross domestic product per capita as an index of economic development. It was recommended, inter alia, that a comprehensive health policy with attractive welfare package be evolved as incentive to halt continuing human capital flight from health sector.