This study examined the effect of government investment on human capital and human capital indicators on the economic development in Nigerian economy with the period spanning 1991 to 2022. With government investment in human capital disaggregated into government expenditure in education (GEE), and government expenditure in health (HEHT), the study factors in human development variables like Labour force (LF), Life expectancy (LE), Government Consumption Expenditure (GCE), Literacy rate (LITR), Primary School Enrolment (PSEN), Secondary School Enrolment (SSEN), Tertiary School Enrolment (TSEN) and Under Five Mortality Rate (UMOR) and regressed on GPD Per capita as proxy for economic development. The results obtained form Auto Regressive Distributive Lag (ARDL) showed a strong evidence that human capital indicators including UMOR, TSEN, SSEN, PSEN, and LITR exhibitedstatistical significance effects both in the short-run and long-run. Further evidences showed that economic developmentin Nigeria is significantly affected by the government's investment in human capital (education and healthcare). These results supposed the imperative for policymakers to prioritize education, healthcare, and effective government spending for sustained economic growth in Nigeria.
Amauche et al. (Fri,) studied this question.