Industrial Sector Performance, Human Capital Development and Economic Growth in Nigeria
DOI:
https://doi.org/10.21632/irjbs.16.2.163-177Keywords:
Economic growth, Human capital, Industrial output, Autoregressive distributed, Industrial sector performanceAbstract
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 applied to obtain the stationarity conditions of the variables before performing the autoregressive distributed lag test to determine the short- and long-run relationships among the variables. The study reveals no long-run relationship 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.
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-countrycomparison-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 lowincome 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/202104/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.
Downloads
Submitted
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Theophilus Oluyemi Adeosun, Simeon Ernest Odior, Ibrahim Ayodele Shittu, Waliu Mulero Adegbite (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal Author(s) Rights
For IRJBS to publish and disseminate research articles, we need publishing rights (transferred from the author(s) to the publisher). This is determined by a publishing agreement between the Author(s) and IRJBS. This agreement deals with the transfer or license of the copyright of publishing to IRJBS, while Authors still retain significant rights to use and share their own published articles. IRJBS supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.
As a journal Author, you have rights to many uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in IRJBS journals have comprehensive rights to use their works for teaching and scholarly purposes without needing to seek permission, including:
- use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
- use for internal training by the author's company;
- distribution to colleagues for their research use;
- use in a subsequent compilation of the author's works;
- inclusion in a thesis or dissertation;
- reuse of portions or extracts from the article in other works (with full acknowledgment of the final article);
- preparation of derivative works (other than commercial purposes) (with full acknowledgment of the final article);
- voluntary posting on open websites operated by the author or the author’s institution for scholarly purposes,
(But it should follow the open access license of Creative Common CC-by-SA License).
Authors/Readers/Third Parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially. Still, they must give appropriate credit (the name of the creator and attribution parties (authors' detail information), a copyright notice, an open access license notice, a disclaimer notice, and a link to the material), provide a link to the license, and indicate if changes were made (Publisher indicates the modification of the material (if any) and retain an indication of previous modifications.
Authors/Readers/Third Parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, reuse portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
