Country Characteristics and Education-Economic Growth Paradox in Nigeria
| Main Author: | OWOEYE, Taiwo Ph.D |
|---|---|
| Format: | Article Journal |
| Bahasa: | eng |
| Terbitan: |
, 2014
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3521353 |
Daftar Isi:
- Studies on growth empirics with negative coefficient for education proxy have provided challenging puzzles. Since education is expected to promote economic growth. One of the best ways to explain this puzzle is to use an augmented growth model that incorporates country specific characteristics. This study builds such model with Nigerian data to test whether the structural characteristics of the Nigerian economy explain the impact of education on economic growth. Using annual data for gross enrolments, secondary and tertiary institutions as proxy for education, gross capital formation as proxy for investment and labour force as proxy for labour, the study finds that education and labour force are not associated with increased output proxy by real gross domestic product, while investment impacts growth positively. Three auxiliary variables—exchange rate black market premium, government consumption expenditure in real gross domestic product and ratio of primary product export total export were then introduced to capture the structural characteristics of the Nigerian economy. Black market premium and government expenditure impact negatively on economic growth. This suggests that the structure of the economy might have resulted into unproductive use of schooling. This study therefore recommends that changing the structure of Nigerian economy is important for use of education.