Acta Universitatis Danubius. Œconomica, Vol 12, No 5 (2016)

Abstract

The study examines the interactive effects of the relationship between human capital investment components and economic growth in Nigeria for the period of 1986 – 2014. Although, various studies have focused on the relationship between human capital and economic growth all over the world but there is still a missing gap on the joint influence of human capital investment components on economic growth particularly in Nigeria. The study employs secondary annual data on education expenditure; health expenditure; real gross domestic product and gross capital formation obtain from the Central Bank Statistical bulletin, 2014 and analyze using Fully Modified Ordinary Least Squares (FMOLS) technique. The results of the study show that there is positive and significant relationship between the interactive effects of human capital components and growth in Nigeria. The study educates the government and policy makers on the importance of policy mix in terms of how human capital development enhances growth in Nigeria than embarking on the use of one policy instrument. The paper therefore contributes to knowledge by providing information on the interactive effects of education and health on growth in Nigeria.