Age Structure, Human Capital Development and Economic Growth: Evidence from Nigeria and South Africa

Abstract

This study explores the relationship between age structure and economic growth by incorporating
human capital development in the context of the two leading economies in Africa (Nigeria and South Africa)
spanning the period of 1991 and 2017 using the Autoregressive Distributed Lag (ARDL) model. The empirical
result indicates that age structure stimulates economic growth in both countries while human capital
development impedes economic growth in Nigeria but improves economic growth in South Africa. Further, the
result that interaction of age structure and human capital development hinders economic growth in Nigeria
whereas positively influence economic growth in South Africa. Based on this result, the study therefore
concluded that working age share alone cannot by itself enhance economic growth, but has to be supported by
improved human capital investment. It is therefore, recommended that government of both countries should
prioritize education at all levels and identify skills and competence that could make such education functional
and productive.