IMPACT OF HUMAN CAPITAL AND CORRUPTION ON ECONOMIC GROWTH IN NIGERIA

Abstract

This study investigates the effect of human capital development and corruption on economic growth in Nigeria. The study employed Augmented Dickey-Fuller (ADF) and Phillip Peron (PP) tests, Johansen Cointegration test and Error Correction Mechanism (ECM) to analyse the data spanning from 1996 – 2020 sourced from World Development Indicators (WDI) and Transparency International. The empirical results show that human capital development has a significant negative effect on economic growth while corruption has a significant positive effect on GDP per capita. The results further reveals that the interaction variable has a negative and significant effect on economic growth in Nigeria. Therefore, the study conclude that human capital development and corruption have significant effect on economic growth in Nigeria. The study recommends among others that government should strengthening institutions of Economic and Financial Crime Commission (EFCC), Independent and Corrupt Practices Commission (ICPC) and Court of Conduct Bureau (CCB) in Nigeria. KEYWORD: ADF, ECM, TROP, Economic growth.