Article Metrics

Article abstract view : 257 times
PDF full text: 0 times

Industrial Sector Performance, Human Capital Development and Economic Growth in Nigeria

Oluyemi Theophilus Adeosun, Simeon Ernest Odior, Ibrahim Ayodele Shittu, Waliu Mulero Adegbite

Abstract


This study examines the relationship between Industrial Sector Performance (ISP), Human Capital Development (HCD), and Economic Growth (EG) in Nigeria. Data used in this study was obtained from World Development Indicators (WDI) and Penn World from 1981 to 2020 on GDP/Capita, Human Capital Index, and Industrial Output.  The augmented Dickey-Fuller (ADF) test was used to obtain the stationarity conditions of the variables before performing the Autoregressive Distributed Lag Test to determine the short-run and long-run relationships among the variables. The study reveals no long-run relationship exists among the variables; however, a negligible impact on human capital and industrial output in the short term exists, highlighting the need for government intervention. This is the first study to examine the tripartite relationship between industrial sector performance, human capital development, and economic growth in the Nigerian context, providing insight into the dynamics of the relationships in developing countries.

Keywords


Economic growth; Human capital; Industrial output; Autoregressive distributed; Industrial sector performance

Full Text:

PDF

References


Abubakar, A. B, Bala, A. S, & Musa, A. A. (2020). To What Extent Does Human Capital Development Impact Economic Growth? Empirical Evidence from Nigeria. Research Square; DOI: 10.21203/rs.3.rs-65418/v1

Adelakun, I. S. (2021). Understanding education finance for socio-economic and political emancipation. International Journal of Educational Management, 19(2).

Afolabi, A., & Laseinde, O. T. (2019). Manufacturing sector performance and economic growth in Nigeria. In Journal of Physics: conference series, 378(3), 032067. IOP Publishing.

Afolayan, O. T. (2017). The Relationship between Human Capital Investments and Economic Development in Nigeria. Paper Presented at the 9th Annual National Conference of the School of Management Studies, the Federal Polytechnic Ilaro, Ogun State, held on 28th–30th November 2017.

Agbedahin, A. V. (2019). Sustainable development, Education for Sustainable Development, and the 2030 Agenda for Sustainable Development: Emergence, efficacy, eminence, and future. Sustainable Development, 27(4), 669-680.

Aghion, P., Howitt, P., Howitt, P. W., Brant-Collett, M., & García-Peñalosa, C. (1998). Endogenous growth theory. MIT press.

Akaakohol, B. M. & Ijirshar, V. U. (2018). Human capital development and economic growth in Nigeria. Lafia Journal of Economics and Management Sciences Volume 3.

Akpan, G. E., & Chuku, C. (2014). Natural resources, human capital and economic development in Nigeria: Tracing the linkages. Journal of Economics and Sustainable Development, 5(21), 44-50.

Akinsokeji, A. R., & Akinlo T. (2019). Human Capital and Economic Growth in Nigeria. Nigerian Studies in Economics and Management Sciences, 2(1): 1- 8.

Ali, M., Egbetokun, A. & Memon, M. H. (2018). Human capital, social capabilities and economic growth. Economies, 6(1), 2.

Arestis, P. & Sawyer, M. C. (2002). 'New Consensus' New Keynesianism, and the Economics of the 'Third Way'. Levy Economics Institute Working Paper No. 364, Available at SSRN: http://dx.doi.org/10.2139/ssrn.386961

Arjun, K., Sankaran, A., Kumar, S., & Das, M. (2020). An endogenous growth approach on the role of energy, human capital, finance and technology in explaining manufacturing value-added: A multi-country analysis. Heliyon, 6(7), e04308.

Babalola, A. J., & Iwegbu, O. (2021). Cost of road infrastructure development, macroeconomic conditions and Nigeria’s economic growth. Lagos Journal of Architecture: 44(5)

Baily, M., Bosworth, B. & Kennedy, K., (2021). The contribution of human capital to economic growth, A cross-country comparison of Germany, Japan, and the United States, Brookings Institution. United States of America. Retrieved from https://policycommons.net/artifacts/4136569/the-contribution-of-human-capital-to-economic-growth-a-cross-country-comparison-of-germany-japan-and-the-united-states/4945193/ on 05 Nov 2023. CID: 20.500.12592/3wjvzt.

Bernard A. C. (2021). What accelerates industry value added in middle-income countries: is there a differential impact in low-income countries? Transnational Corporations Review, 1-16.

Breton, T. R. (2013). Were Mankiw, Romer, and Weil right? A reconciliation of the micro and macro effects of schooling on income. Macroeconomic Dynamics, 17(5), 1023-1054.

Chattell, A. (1998). Creating value in the digital era: Achieving success through insight, imagination and innovation. Springer. https://link.springer.com/book/10.1007/978-1-349-14711-3

Chang, H. J., & Andreoni, A. (2020). Industrial policy in the 21st century. Development and Change, 51(2), 324-351.

Chen, Y., Kumara, E. K. & Sivakumar, V. (2021). Investigation of finance industry on risk awareness model and digital economic growth. Annals of Operations Research, 1-22.

Clube, R. K. & Tennant, M. (2020). The Circular Economy and human needs satisfaction: Promising the radical, delivering the familiar. Ecological Economics, 177, 106772.

Cvetanović, S., Mitrović, U. & Jurakić, M. (2019). Institutions as the Driver of Economic Growth in Classic, Neoclasic and Endogenous Theory. Economic Themes, 57(1), 111-125.

Danquah, M. & Amankwah-Amoah, J. (2017). Assessing the relationships between human capital, innovation and technology adoption: Evidence from sub-Saharan Africa. Technological Forecasting and Social Change, 122, 24-33.

Dauda, R.O. & Odior, E.S.O. (2016). Human Capital Investment and Industrial Performance in Nigeria: A GMM Approach. Unilag Press & Bookshop ltd.

Temiz Dinç, D., & Gökmen, A. (2019). Export-led economic growth and the case of Brazil: An empirical research. Journal of Transnational Management, 24(2), 122-141.

Dieleman, J. L., Sadat, N., Chang, A. Y., Fullman, N., Abbafati, C., Acharya, P., & Murray, C. J. (2018). Trends in future health financing and coverage: future health spending and universal health coverage in 188 countries, 2016–40. The Lancet, 391(10132), 1783-1798.

Dosi, G., Napoletano, M., Roventini, A. & Treibich, T. (2019). Debunking the granular origins of aggregate fluctuations: from real business cycles back to Keynes. Journal of Evolutionary Economics, 29, 67-90.

Fashina, O. A., Asaleye, A. J., Ogunjobi, J. O. & Lawal, A. I. (2018). Foreign aid, human capital and economic growth nexus: Evidence from Nigeria. Journal of International Studies, 11(2), 104-117.

Fasoye, K., Olayiwola, A. S. & Joseph, K. E. (2021). Impact of Domestic Industrial Output on Economic Growth in Nigeria. Journal of Advanced Research in Economics and Administrative Sciences, 2(1), 57-67.

Fernandes, C. I., Veiga, P. M., Ferreira, J. J. & Hughes, M. (2021). Green growth versus economic growth: Do sustainable technology transfer and innovations lead to an imperfect choice?. Business Strategy and the Environment, 30(4), 2021-2037.

Fraboni, F., Brendel, H., & Pietrantoni, L. (2023). Evaluating Organizational Guidelines for Enhancing Psychological Well-Being, Safety, and Performance in Technology Integration. Sustainability, 15(10), 8113.

Guerrini, L. (2010). Logistic population change and the Mankiw-Romer-Weil model. Applied Sciences, 12, 96-101.

Hadir, M. A. & Lahrech, A. (2015). Human Capital Development and Economic Growth in Morocco. International Journal of Education and Human Developments. 1(1) 1-14.

Hamid, J. (2013). Strategic human resource management and performance: the universalistic approach-case of Tunisia. Journal of Business Studies Quarterly, 5(2), 184.

Hassan, S. T., Baloch, M. A., Mahmood, N. & Zhang, J. (2019). Linking economic growth and ecological footprint through human capital and biocapacity. Sustainable Cities and Society, 47, 101516.

Karagiannis, N., Cherikh, M. & Elsner, W. (2021). Growth and development of China: A developmental state 'with Chinese characteristics. In Forum for Social Economics, 50(3), 257-275. Routledge.

Lawanson, O., & Evans, O. (2019). Human Capital, Structural Change and Economic Growth in Developing Countries: The Case of Nigeria. In O. I. Lawanson, & N. M. Nwakeze (Eds.), Economics of Human Resource: Issues, Challenges & Opportunities, A Festschrift in Honour of Professor Folayan Ojo (pp. 89-103). Lagos: University of Lagos Press.

Luqman, M. & Soytas, U. (2023). Asymmetric role of human capital and trade liberalization in the economic growth of Pakistan: Fresh evidence from the nonlinear analysis. The Journal of International Trade & Economic Development, 32(3), 475-493.

Mankiw, N. G., Romer, D. & Weil, D. N. (1992). A contribution to the empirics of economic growth. The quarterly journal of economics, 107(2), 407-437.

Matthew, O., Ede, C. U., Osabohien, R., Ejemeyovwi, J. O., Fasina, F. & Akinpelumi, D. (2018). Electricity consumption and human capital development in Nigeria: Exploring the implications for economic growth. International Journal of Energy Economics and Policy, 8(6), 8-15.

McGregor, J. A. & Pouw, N. (2017). Towards an economics of wellbeing. Cambridge Journal of Economics, 41(4), 1123-1142.

McKee-Ryan, F. M. (2021). Coming of Age in a Global Pandemic: HRM Perspectives on Generation Z’s Workforce Entry. In Research in personnel and human resources management, 39, 99-128. Emerald Publishing Limited.

McMillan, M., Rodrik, D. & Verduzco-Gallo, Í. (2014). Globalization, structural change, and productivity growth, with an update on Africa. World development, 63, 11-32.

Morris, M. H., Santos, S. C. & Neumeyer, X. (2018). Making sense of the economics. In Poverty and Entrepreneurship in Developed Economies. Edward Elgar Publishing.

Mottaleb, K. A., & Sonobe, T. (2011). An inquiry into the rapid growth of the garment industry in Bangladesh. Economic Development and Cultural Change, 60(1), 67-89.

North, D. C. (2018). Institutional change: a framework of analysis. In Social rules, 189-201, Routledge.

Okuneye, B. A. (2019). Industrial sector performance and economic growth in Nigeria. Fountain University Osogbo journal of management, 4(1).

Olayemi, S. O. (2012). Human capital investment and industrial productivity in Nigeria. International Journal of Humanities and Social Science, 2(16), 298-307.

Oluwatobi, S. A., & Ogunrinola, I. O. (2011). Government expenditure on human capital development: Implications for economic growth in Nigeria. Journal of sustainable development, 4(3).

Orji, A., Ogbuabor, J. E., Nwosu, E., Anthony-Orji, O. I. & Isaac, S. T. (2019). Financial development, human capital and Economic growth in Nigeria: An Empirical Analysis. Journal of Academic Research in Economics, 11(3).

Oyinlola, M. A. & Adedeji, A. (2019). Human capital, financial sector development and inclusive growth in sub-Saharan Africa. Economic Change and Restructuring, 52(1), 43-66.

Palumbo, A. (2009). Adjusting theory to reality: the role of aggregate demand in Kaldor's late contributions on economic growth. Review of Political Economy, 21(3), 341-368.

Rana, G. & Sharma, R. (2019). Emerging human resource management practices in Industry 4.0. Strategic HR Review.

Rodrik, D., McMillan, M. & Sepúlveda, C. (2016). Structural change, fundamentals, and growth. Structural Change, Fundamentals, and Growth. Washington DC: IFPRI.

Saba, C. S. & Ngepah, N. (2022). ICT diffusion, industrialisation and economic growth nexus: An international cross-country analysis. Journal of the Knowledge Economy, 13(3), 2030-2069.

Saka, N. & Olanipekun, A.O. (2021). Impact of the banking sector reform in the construction sector. Journal of Financial Management of Property and Construction. 26(3), 387-407. https://doi.org/10.1108/JFMPC-03-2020-0012.

SMEDAN (2017) National Policy on micro, small and medium enterprises. Retrieved from:http://www/smedan.gov.ng/search.php?searWords=National%20policy%20on%20MSMEs.

Subramony, M., Segers, J., Chadwick, C. & Shyamsunder, A. (2018). Leadership development practice bundles and organizational performance: The mediating role of human capital and social capital. Journal of business research, 83, 120-129.

Sulaiman, C., Bala, U., Tijani, B. A., Waziri, S. I., & Maji, I. K. (2015). Human capital, technology, and economic growth: Evidence from Nigeria. Sage Open, 5(4), 2158244015615166.

Tang, Y. M., Chau, K. Y., Fatima, A. & Waqas, M. (2022). Industry 4.0 technology and circular economy practices: business management strategies for environmental sustainability. Environmental Science and Pollution Research, 29(33), 49752-49769.

Temiz, D., Gökmen, A. & Üstündağ, K. (2019). Economic Growth Inflation Nexus & Its The case of the telecommunication industry in China. Research policy, 34(6), 759-783. The Pacific. Economic Record, 73(222), 201-211.

Tsiapa, M. (2022). Performance of large firms in Greece during the unstable period of 2011–2016: lessons from the weak parts of Europe. European Journal of Management and Business Economics, 31(1), 94-114.

Udah, E. B. & Bassey, E. (2017). Infrastructure, human capital and Industrialization in Nigeria. Nile Journal of Business and Economics, 3(6), 58-78.

UNIDO (2020) Annual Report 2020 accessible at https://www.unido.org/sites/default/files/files/2021 04/UNIDO_AR2020_EN.pdf.

Wadho, W. & Chaudhry, A. (2018). Innovation and firm performance in developing countries: The case of Pakistani textile and apparel manufacturers. Research Policy, 47(7), 1283 - 1294.






Copyright (c) 2023 Theophilus Oluyemi Adeosun, Simeon Ernest Odior, Ibrahim Ayodele Shittu, Waliu Mulero Adegbite

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

International Research Journal of Business Studies has been covered by the following services:

   
  
Image result for university of Saskatchewan small logo