Human Capital Investment, Poverty and Economic Development in Nigeria

Abstract

This paper examined the relationship between human capital investment, poverty and economic development in Nigeria with the use of time series data from 1980 to 2018 and the autoregressive distributed lag model. The result for Augmented Dickey-Fuller unit root test for stationarity established that none of the variable used in the estimation was of order two while the Bounds test showed that long run equilibrium relationship exists among the variables. There were mixed results with respect to the human capital investment measures in relation to economic development while poverty had negative relationship with economic development. It was recommended that expenditure in the educational sector should be efficiently used as this may increase economic development and reduce poverty rate in the long run.