FOREIGN DIRECT INVESTMENT AND HUMAN CAPITAL DEVELOPMENT IN NIGERIA

Abstract

This study examined the relationship between foreign direct investment and human capital development in Nigeria. The Impulse Response Function of the Vector Auto-Regression (VAR) estimation methodology is the framework of analysis. Findings indicate that foreign direct investment had minimal effect on human capital development in Nigeria while the latter on the other hand had no considerable impact on the former. However, while the lag of human capital development had marginal impact on its value in the current period that of foreign direct investment was of considerable impact. Therefore the imperative is for the country to properly manage its foreign direct investment in order to continue to attract the inflow of same in successive periods.