ANALYSIS OF INSTITUTIONAL QUALITY, HUMAN CAPITAL AND ECONOMIC GROWTH IN NIGERIA

Abstract

The importance of human capital as well as quality of institutions in the growth process cannot be overemphasized. This study investigated the relationship amongst institutions, human capital and economic growth in Nigeria from 1996 to 2018 using time series data. Autoregressive Distributed Lag (ARDL) model was used to analyze the data. The findings from the study revealed that there exist a positive and statistically significant relationship amongst institutions (political stability), human capital and economic growth in Nigeria at 5% level of significance in the short-run, while control of corruption is statistically not significant both in the short-run and in the long-run in its relationship with economic growth in Nigeria at 5% level of significance. The study recommends among others that government should increase its expenditure on education because of its strategic importance in economic growth; the current stability in the polity should be maintained since it is growth-enhancing and agencies responsible in the fight against corruption should be strengthened.