Human Capital Investment and Industrial Productivity in Nigeria
Simon-Oke O. Olayemi

Abstract
This study investigates the relationship between human capital investment and industrial productivity in Nigeria using secondary data spanned through 1978 to 2008. Co-integration and Error Correction Mechanism (ECM) was employed to examine the nexus between human capital investment and industrial productivity. Granger causality test was also adopted as a supplementary estimation method to explore the nature of causality among the variables established in the model. The study found that government expenditure on education maintained a positive long run relationship with index of industrial production while government expenditure on health and Gross Capital Formation exhibited long run negative relationship with the dependent variable. Consequently it was recommended among others that more stock of physical capital needed to be acquired, to facilitate more investment in human capital and thereby enhance industrial productivity in Nigeria.

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