Nexus between Foreign Capital Inflows and Human Capital Development in Nigeria
Keywords:HDI; FDI; Trade Openness; ODA; Remittances
This aim of study is on the nexus between foreign capital inflows and human capital development in Nigeria spanning from 1990 to 2020. This study relied on secondary data which was sourced from the World Development Indicators. Consequently, the FMOLS method was utilized to analyze the data. Based on the findings erupted from this study, trade openness has a negative and significant relationship with human capital development. In the same vein, FDI and portfolio investment have a significant inverse relationship with human capital development in Nigeria. However, official development assistance has a direct relationship with human capital development, the relationship is significant at 10 percent level of significance. And exchange rate has a positive and significant relationship with human capital development. Both external debt and remittances have insignificant positive relationship with human capital development in Nigeria. In a nutshell, the majority of the inflows of foreign capital in Nigeria have a significant and negative relationship with human capital development in this study. Steaming from the above findings, this study recommends that the policymakers in Nigeria should deploy the inflows of foreign capital in the direction of the human development oriented programmes in the country.
Adarkwa, M. (2015). Impact of remittances on economic growth: Evidence from selected West African Countries (Cameroon, Cape Verde, Nigeria and Senegal), African humane mobility review, 5(1), 2-52.
Adekunle, I. A., Ogunade, A. O., Kalejaiye, T. G., & Balogun, A. M. (2020). Capital inflows and industrial performance in Nigeria: including the excluded. Jurnal Ekonomi & Studi Pembangunan, 21(1), 37-52.
Adegboye, C. A., Ogbebor, A. O &Egharvba, M. I. (2014). External capital flows and economic growth in Nigeria: .JORIND, 12 (2), 91 – 98.
Aderemi, T.A., Olayemi, H.O, Adejumo, A. V. & Abolore, Y. F. (2019). Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in some Selected Emerging Economies. European Financial and Accounting Journal 2019 (2), 27-42
Aderemi T. A., Olowo, S. O., Osisanwo, B. G and Omoyele, O. S. (2021:1). Reinvestigating Foreign Direct Investment and Poverty Nexus; Any Difference with the Nigerian Human Development? Economic Insight-Trends and Challenges, 10(3), 13-26.
Aderemi, T. A., Oyegoke, A.A., Wahid D. O., Olaoye, O. P, Ayodeji, G. B. and Azuh, D. E. (2021:2). Human Capital Development, Energy Consumption and Crude Oil Exports in Nigeria: Implications for Sustainable Development. International Journal of Energy Economics and Policy, 11(4), 443-449.
Aderemi, T. A., Ogunleye, A. G., Lucas, B. O., and Okoh, J. I. (2020). Globalization and Economic Growth: Evidence from European Countries. European Financial and Accounting Journal, 15(1): 67-82.
Agbola, F.W. (2013). Does human capital constrain the impact of foreign direct investment and remittances on economic growth in Ghana? Applied Economics, 45(19/21):2853–2862.
Ajayi, E. O., Adedeji, O. A., Giwa B. A., & Araoye F. E. (2017). Dynamic impact of remittance on economic growth in Nigeria: Journal of Accounting and Financial Management 3(3)3-17.
Akanyo, B.A. & Ajie, H. A. (2015).Impact of capital flows on the Nigerian economy in a liberalized environment, 1981-2012.International Journal of Business Finance and Management Research, 3(3), 6-18.
Akinbode, S. O., Olabisi, J., Adegbite, R.R. and Aderemi, T. A. and Alawode, A. M. (2020). Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa, Journal for the Advancement of Developing Economies, 9(1), 16-34.
Alfaro, L. and Johnson, M.S. (2012), “Foreign direct investment and growth”, The Evidence and Impact of Financial Globalization, Academic Press, Elsevier, pp. 299-309.
Balasubramanyam, V.N., Salisu, M. &Sapsford, D. (1996). Foreign direct investment and growth in EP and IS countries. Economics Journal, 106(434), 92–105.
Chigbu, E. E., Ubah, C. P. & Chigbu, U. S. (2015). Impact of capital inflows on economic growth of developing countries. International Journal of Management Science and Business Administration, 1(7), 7-21.
Fagbemi, F., & Osinubi, T. T. (2020). Leveraging Foreign Direct Investment for Sustainability: An Approach to Sustainable Human Development in Nigeria.
Fashina O. A., Asaleye, A.J., Ogunjobi, J.O., & Lawal, A.I. (2018). Foreign aid, human capital and economic growth nexus: Evidence from Nigeria. Journal of International Studies, 11(2), 104-117.
Felix, D., & Amuche, A., (2017). Foreign portfolio investment and human capital development in Nigeria: Journal of Economics and Sustainable Development, 5(3), 16-47.
Fowowe, B. &Shuaibu M.I. (2014). Is foreign direct investment good for the poor? New evidence from African countries. Economic Change and Restructuring, 47(4):321–339.
Frank, N & Garry, U. O. (2015). The effects of international capital inflow on human capital development in Nigeria: International Journal of economics and humanities, 45(9), 15-43.
God’stime, O. E., & Uchechi, S. A. (2014). Human capital development and economic growth: The Nigeria experience. International journal of academic research in business and social sciences, 4(4), 25-35.
Harbison, F.H. (1973). Human resources as the wealth of nations. New York: Oxford University Press.
Isiwu, G. D., Ngwu, J. C., Chukwu, S. N., & Ojiya, E. A. (2018). An examination of the impact of net capital inflows on the financial sector of the Nigerian economy. International Journal of humanities, art and social studies (IJHAS), 3(1), 17-30.
James, I. E., & Emmanuel, A. O. (2020). Foreign Portfolio Investment and Human Capital Development in Nigeria 2005-2019. Archives of Business Research, 8(10). 83-101.
James, O. & Johnson, O. (2016). Effect foreign portfolio investment on human capital development in Nigeria (1986 - 2015): International Journal of Innovative Finance and Economics Research, 7(6), 5-38.
Lawal, N. A., Adegun, E. A. Aderemi, T. A. and Dauda, R. O.S. (2022). Migrant Remittances, Growth and Poverty Reduction: ARDL-Bounds Test and Granger Causality Approach. Izvestiya Journal of verna University of Economics, 66(1-2), 74-90.
Liu, Y., Adejumo, A. V., Adejumo, O. O. and Aderemi. T. A. (2022). Globalization and Economic Growth: A Sustainability Analysis for South Asia Countries. Global Policy (Wiley), OO, 1-16.`
Musa, A. (2014). Impact of foreign portfolio investment on human capital development in Nigeria between 1983 to 2013: Journal of Sustainable Development in Africa, 10(3),4-35.
Musibau, H. O., Yusuf, A. H., & Gold, K. L. (2019). Endogenous specification of foreign capital inflows, human capital development and economic growth: A study of pool mean group. International Journal of Social Economics.
Nkechi, O. A., & Okezie, O. K. (2013). Investigating the Interaction between Foreign Direct Investment and Human Capital on Growth: Evidence from Nigeria. Asian Economic and Financial Review, 3(9), 1134–1151.
Nkoro, E. & Uko, A. K. (2013). Foreign capital inflows and economic growth in Nigeria: An empirical approach. Asian Journal of Empirical Research, 2(5), 149-161.
Nwafor, P. K. (2020). Foreign Portfolio Investment and Human Capital Development Evidence from Nigeria 1987-2019. International Journal of Business & Law Research, 8(3), 1-11.
Nwaokoro, C (2016). Effect of foreign portfolio investment on human capital development in Nigeria from 1985 to 2015: International Journal Educational Research, 1(2), 6-52.
Olowookere, J. K., Olanipekun, W. D., Sokunbi, G. M. and Aderemi, T. A. (2022). Human Capital Development and Sustainable Development; Evidence from Nigeria. Studia Universitatis Babes-Bolyal Oeconomica, 67(1), 63-76
Olowookere, J. K., Olowo, S. O., Mabinuori T. O. and Aderemi, T. A. (2021). Foreign Capital Inflows and Poverty Reduction in Nigeria: Implication for Sustainable Development. Euro Economica, 40(1), 29-37.
Okafor, E. I., Ezeaku, H. C. & Eje, G. E. (2015). Foreign investment and its effect on the economic growth in Nigeria: A triangulation analysis: IOSR Journal of Economics and Finance (IOSR-JEF), 6(4), 01-07.
Okafor, I.G., Ugochukwu, U.S. & Chijindu, E.H. (2016). Foreign capital inflows and Nigerian economic growth nexus: A Toda Yamamoto Approach: European Journal of Accounting, Auditing and Finance Research, 4(3), 16-26.
Ogunleye, G.A. Aderemi, T.A., Kalejaiye, T.G. and Nwagwu C.J. (2020). Official Development Assistance and Poverty Alleviation in Nigeria (1981- 2017). Acta Universitatis Danubius. Œconomica 16(1): 252-265.
Omoyele, O.S., Lucas, B.O, Olanipekun, W.D. and Aderemi, T.A., (2021). Globalization and industrial development in Nigeria: A Curse or Cure? Journal of Business and Economics, Publication of Department of Economics and Business, University of Oradea. 6 (2), 88- 97.
Onyekwelu, O. V. (2022). International Capital Inflows and Human Capital Development in Nigeria (1988-2020). International Journal of Innovative Development and Policy Studies, 10(2), 59-70.
Orji, A., Uche, A. S., & Ilori, E. A. (2014). Foreign capital inflows and growth: An empirical analysis of WAMZ experience. International Journal of Economics and Financial Issues, 4(4), 971-983.
Paul E., Chibueze, A. & Callistus, O. (2016). Does foreign portfolio investment affect employment growth in Nigeria: Journal of Economics and Sustainable Development, 2(4), 6.
Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5): 71-102.
Solow, R. M. (1957), Technical Change and the Aggregate Production Function. Review of Economics and Statistics, 39(3): 312-320.
Todaro, M. P., & Smith, S. C. (2009). Economic development (10th ed). London: Pearson Education Limited.
How to Cite
Copyright (c) 2022 Timothy Ayomitunde Aderemi
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.