Rasaq Akonji Danmola, Ibrahim Kadiri Kayode, Ologban Folashade Oluwayemisi


This paper examines the impact of human capital development on the Nigerian Manufacturing out-put in Nigeria. Theoretical growth models ad macroeconomic evidence suggest that human capital accumulation in form of both foreign and domestic capital in the manufacturing sector is an important factor influencing per capita income growth in the country. However, Hideki et al. (2005) highlighted the relevance of measurement errors, and incorrect specifications may have affected early macroeconomic studies that found a weak correlation between growth in the Manufacturing sector and human capital accumulation. . We therefore investigate the relationship between human capital development and the manufacturing out-put in Nigeria with time series data which covers periods 1981-2021.  Employing the endogenous modeling approach cast within the autoregressive distributed lag (ARDL) framework, the bounds testing analysis shows the presence of cointegration between Manufacturing out-put and human capital development indicators. The findings of the study also indicates that human capital development indicators have positive impact on the Manufacturing out-put in Nigeria within the periods under consideration; In addition, their effects were greatly statistically insignificant. Further evidence shows that equilibrium is fully restored for any distortion in the short-run. On this basis of the emanating findings, this study proffered the need for government to invest more in human capital development process and endeavours prioritize the health and education sectors budgeting considering their growth driving potentials in Nigeria. More so, government should put more emphasizes on technical education which will emphasizes on human capital in the use of technological tools from Primary, Secondary, Tertiary schools up to its workforce and lastly, more funds should made available to Research and development as it affect Manufacturing production.


Bounds Test, Manufacturing Out-put, Endogeneity, Human Capital Development, Nigeria.

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