HUMAN CAPITAL DEVELOPMENT AND MANUFACTURING OUT-PUT IN NIGERIA: AUTOREGRESSIVE DISTRIBUTED LAG (ARDL) ANALYSIS

Rasaq Akonji Danmola, Ibrahim Kadiri Kayode, Ologban Folashade Oluwayemisi

Abstract


This paper examines the impact of human capital development on the Nigerian Manufacturing out-put in Nigeria. Theoretical growth models ad macroeconomic evidence suggest that human capital accumulation in form of both foreign and domestic capital in the manufacturing sector is an important factor influencing per capita income growth in the country. However, Hideki et al. (2005) highlighted the relevance of measurement errors, and incorrect specifications may have affected early macroeconomic studies that found a weak correlation between growth in the Manufacturing sector and human capital accumulation. . We therefore investigate the relationship between human capital development and the manufacturing out-put in Nigeria with time series data which covers periods 1981-2021.  Employing the endogenous modeling approach cast within the autoregressive distributed lag (ARDL) framework, the bounds testing analysis shows the presence of cointegration between Manufacturing out-put and human capital development indicators. The findings of the study also indicates that human capital development indicators have positive impact on the Manufacturing out-put in Nigeria within the periods under consideration; In addition, their effects were greatly statistically insignificant. Further evidence shows that equilibrium is fully restored for any distortion in the short-run. On this basis of the emanating findings, this study proffered the need for government to invest more in human capital development process and endeavours prioritize the health and education sectors budgeting considering their growth driving potentials in Nigeria. More so, government should put more emphasizes on technical education which will emphasizes on human capital in the use of technological tools from Primary, Secondary, Tertiary schools up to its workforce and lastly, more funds should made available to Research and development as it affect Manufacturing production.


Keywords


Bounds Test, Manufacturing Out-put, Endogeneity, Human Capital Development, Nigeria.

Full Text:

PDF

References


Adelakun, O. J. (2011). Human capital development and economic growth in Nigeria. European Journal of Business and Management, 3(9), 29-39.

Alfada, A. (2019). The destructive effect of corruption on economic growth in Indonesia: A threshold model. Heliyon, 5(10), 1-8.

Banerjee, R., & Roy, S. S. (2014). Human capital, technological progress, and trade: What explains India's long-run growth? Journal of Asian Economics, 30, 15-31.

Billett, S. (2020). Learning in the workplace: Strategies for effective practice. London: Routledge.

Calkin, S. (2018). Human capital in gender and development. London, UK: Routledge.

Cornock, O. (2018). The report: Indonesia 2018. London, UK: Oxford Business Group.

Denis, U. (2017). Economic reforms for global competitiveness. Hershey, PA: IGI Global.

Duffield, C., Hui, F. K. P., & Wilson, S. (2019). Infrastructure investment in Indonesia: A focus on ports. Cambridge, MA: Open Book Publisher.

Felipe, J., Widyasanti, A., Foster-McGregor, N., & Sumo, V. (2019). Policies to support the development of Indonesia's manufacturing sector during 2020-2024: A joint ADB-BAPPENAS report. Jakarta: Asian Development Bank.

Greenhalgh, C., & Rogers, M. (2010). Innovation, intellectual property, and economic growth. Princeton, NJ: Princeton University Press.

Hahn, F., Coricelli, F., & Di Matteo, M. (2016). New theories in growth and development. Cham, Switzerland: Springer.

Han, J. S., & Lee, J. W. (2020). Demographic change, human capital, and economic growth in Korea and Japan. World Economy, 3(53), 1-13.

Hess, P. N. (2016). Economic growth and sustainable development. London, UK: Routledge.

Ingsih, K., Prayitno, A., Waluyo, D. E., Suhana, S., & Ali, S. (2020). The effect of training, information technology, intellectual and emotional intelligence on the teacher's performance. The Journal of Asian Finance, Economics, and Business, 7(12), 577-582.

Greenhalgh, C. &. (2010). Innovation, intellectual property, and economic growth. . Princeton, NJ:: Princeton University Press.

Jia, X., & Tomasic, R. (2017). Resource security and governance: Globalisation and China's natural resource companies. London, UK: Routledge.

Jones, R., & Jenkins, F. (2018). Managing money, measurement, and marketing in the allied health professions. London, UK: CRC Press.

Kustono, A. S. (2020). How total quality management mediates antecedent variables of employee performance? The Journal of Asian Finance, Economics, and Business, 7(12), 523-534.

Leibo, S. A. (2018). East and Southeast Asia 2018-2019. Lanham, MD: Rowman & Littlefield.

Lucas, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3-42.

Lucas, R. E. (1990). Why doesn’t capital flow from rich to poor countries? The American Economic Review, 80, 92-96.

Machado, C. (2015). International human resources management: Challenges and changes. . Cham, Switzerland: : Springer.

Martin, M., & Whiting, F. (2016). Human resource practice. London, UK: Kogan Page.

Morris, S., &Oldroyd, J. (2020). International business. Hoboken, NJ: John Wiley and Sons.

Rahaman, M. A., Ali, M. J., Wafik, H. A., Mamoon, Z. R., & Islam, M. M. (2020). What factors do motivate employees in the workplace? Evidence from service organizations. The Journal of Asian Finance, Economics, and Business, 7(12), 515-521.

Rajan, S. I. (2020). India migration report 2020: Kerala model of migration surveys. London, UK: Taylor and Francis.

Rebelo, S. (1991). Long-run policy analysis and long-run growth. Journal of Political Economy, 99, 500-521.

Ricciardelli, A. (2017). The role of universities in the Europe 2020 strategy. Cham, Switzerland: Springer.

Rodionov, D., Kudryavtseva, T., Berawi, M. A, &Skhvediani, A. (2020). Innovations in digital. economy. Cham, Switzerland: Springer.

Romer, P. (1986). Increasing returns and long-run growth. Journal of Political Economy, 94, 1002-1037.

Romer, P. (1990). Endogenous technological change. Journal of Political Economy, 98, 71-102.

Serrat, O. (2017). Knowledge solutions: Tools, methods, and approaches to drive organizational performance. Cham, Switzerland: Springer.

Wensley, A., & Evans, M. (2020). 17th international conference on intellectual capital, knowledge management & organizational learning. Canada: University of Toronto.

Wirth, E., Simsek, O., &Apaydin, S. (2018). Economic and management issues in retrospect and prospect. London, UK: IJOPEC Publication.

Xu, Y., & Li, A. (2020). The relationship between innovative human capital and interprovincial economic growth is based on the panel data model and spatial. Econometrics, 2(365), 1-13.


Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Rasaq Akonji Danmola, Ibrahim Kadiri Kayode, Ologban Folashade Oluwayemisi

 

 

 

 

 

 

 

 

 

ISSN (PRINT):    2682 - 6135

ISSN (ONLINE): 2682 - 6127

 

 

   

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.