Urbanization, Human Capital Accumulation And Economic Growth In Nigeria

Abstract

This study investigates the relationship between urbanization, human capital accumulation and economic growth in Nigeria spanning from 1980 to 2020. Data for the study were obtained from Central Bank of Nigeria Statistical bulletin, UN Division World Populations Prospects, 2019 Revision, U.N. Urbaniza????on Prospects and Federal Ministries of Education and Health. The formulated model was subjected to unit root test using the Augmented Dickey Fuller unit root approach. The ADF result revealed that the variables have mixed order of integration. Some of the variables were stationary at levels 1(0) while others became stationary after first difference 1(1). Based on this, the study adopted the Auto-regressive distributive lag (ARDL) to ascertain the long-run relationship as well as
the behaviour of the variables. Thus, the result revealed that educational attainment (EDUCATT) is negative and insignificantly influences the real gross domestic product (RGDP) while health care (HLT) showed a significant relationship with real gross domes????c product. However, total population (POP) and urbanization (URBAN) are all significant with real gross domestic product (RGDP). It was recommended amongst others that in order to improve the growth of the Nigerian economy, government allocation to the educa????on and health sectors be increased. This will enhance the productive capacity of the human capital. It therefore implies that once the health outcome of the population is improved upon, their productive output will increase. This will contribute positively to the  economic growth of the country.