Acta Universitatis Danubius. Œconomica, Vol 15, No 1 (2019)

Abstract

Human capital and human capital development have been used interchangeable in the growth literature to achieve sustainable economic growth in the developing economies. While the expansion in educational enrolment rate has not guaranteed a long-run growth in developing economies, the question remains is there any missing link in the nexus between human capital development and economic growth in developing economies? Using the income measurement approach, the study examined the nexus and causality between human capital development and economic growth in the long run economic growth in Nigeria. This study found that human capital development, curriculum development, inflation rate and GINI index were the missing link variables in achieving long run economic growth within 1985-2016 in Nigeria. Also, the study found bidirectional causality between human capital development and economic growth using income measurement approach. Therefore, the identified missing link variables in the nexus between human capital development (HCD) and economic growth in Nigeria should guide policymakers and the academic to achieve sustainable economic growth in the developing economies.