Abstract:

In spite of the theoretical foundations and empirical evidence for the contributions of human capital to the economy, the empirical linkage especially for Nigeria is yet to be settled and thus, remains inconclusive. This is partly linked to variations in the study periods, as well as the differences in methodologies adopted. This study therefore investigates the relationship between human capital formation and economic development in Nigeria through the adoption of the bounds testing for co integration approach within the auto regressive distributed lag (ARDL) framework. The outcome reveals that most of the human capital variables except government health expenditure are statistically insignificant in explaining economic development. The implication is that measures necessary for enhanced quality human capital formation through skills acquisition and good health care be embraced by all stakeholders.  Equally, proper institutional framework that ensures effective and efficient utilization of government resources earmarked for education and health should be pursued.