Impact of human capital on economic development

Human capital affects economic growth and can help to develop an economy through the knowledge and skills of people. Workers who are receiving professional education and development are less likely to seek other employment opportunities.

Time also posed a limitation given the short duration of the research work. Many developing countries of the world including Nigeria are beginning to understand and appreciate the importance of human capital development to their economic growth and sustainability.

That would be an awful investment for your company. Despite how much employees cost, many companies do not properly invest in an employee development plan, in their human capital. Gross Domestic Product GDP This is the measure of the flow of output of final goods and services at either market prices or an adjusted value i.

This is the total sum of money government spends on education and education related projects on yearly basis. For example, many governments offer higher education to people at no cost. A formal plan for human capital development in Nigeria was made during the implementation of the national development plans and today, with the importance of knowledge in the economy the subject has increasingly attracted both academic and public interest.

Earlier this year, Gallup found that the number one factor for millennials when applying for a job was opportunities to learn and grow. Personalize your development opportunities to engage your employees the best.

Human capital is a link which enters both the causes and effects of these economic-demographic changes. A company with a proven human capital plan already in place can demonstrate their commitment to employee development to millennial candidates.

Opportunities to develop are especially Impact of human capital on economic development to millennials.

Human Capital and Economic Growth

This latter function of human capital generates worldwide economic growth regardless of its initial geographic locus. Improved human beings it is argued will not complain about their education, health, food, housing and most of all contribute to the economic growth of a country.

The belief in human development UNDP, as an engine of economic growth has its intellectual antecedents traced to the earlier basic needs approach of the International Labour Organization ILOBased on this and some other interesting findings, past and present studies by economic development theorists and researchers have continued to draw increasing attention to the role played by Human Capital Development HCD to the economic growth EG of a given country or nation.

Limitation of the Study This research is limited to the extent of the data used as well as other problems that posed as limitation to the effectiveness and efficiency of the entire research study.

When customers interact with staff that is engaged and satisfied, they are more likely to have a positive experience.

Many studies including AdeleyeAigbokhan et alOgujiuba, and Adeniyi and Harbisonacknowledged that human resources constitute the ultimate basis for the wealth of nations and that capital and natural resources are passive factors of production.

Happiness makes workers 12 percent more productive.

Impact of Human Capital Development on Nigeria’s Economic Growth (1981 – 2012)

It is therefore an economic fact that any nation desiring guaranteed economic vitality and sustained economic growth must of a necessity place high premium on improved manpower as this is needed to articulate, nurture, operate and sustain enabling policies, functional systems and effective institutions to meet national objectives.

A little investment in an employee development plan can save a lot in employee turnover. The Wrap More than 60 percent of workers expect career development from their employers.

In Nigeria, efforts toward human capital development have for long being on the agenda for policy makers. Investing in employee development can help to grow your employee engagement. This is simply a sustained increase in the output of goods and services over a period of time. A positive culture leads to engaged and happy employees.

Economic development theorists with this in mind share the view that economic prosperity and functioning of a nation depends on its physical and human capital stock. When your employees feel that their workplace cares about their development, they are more likely to be satisfied with their jobs.

Government expenditure on health has no significant effect on economic growth in Nigeria. Government Expenditure on Education: Statement of Problem Nigeria as one of the most populous country in Africa with of labour force and abundant natural resources.

Human capital activities involve not merely the transmission and embodiment in people of available knowledge, but also the production of new knowledge which is the source of innovation and of technical change which propels all factors of production.

But it also helps you to recruit prospects. According to the Talent Mobility Research Reportmore than 40 percent of organizations claim that they rarely, or never, provide career planning or development.

One of such limitations is inadequate finance which manifested in high transportation cost during the search for the research materials.

Organization will also find the research useful in their human resource department in coming up with different policies that will enable the organization to increase employees output through skill acquisition and training.

Workers with more education tend to have higher earnings, which then increases economic growth through additional spending. It has become a central issue now both in the developed and the developing countries of the world for economic policy-makers and practitioners both at the regional, national and international levels to make concrete effort towards the development of their human capital in order to strengthen the position of their economies both locally and internationally, by effectively and efficiently harnessing both their human and natural endowments.

Therefore, it can be asserted that human capital development practices ensures that citizens are better producers as observed by the researcher is the case with Malaysia, Thailand and some other countries of the world who are not as richly blessed as Nigeria in natural resources, but through human capital development are now excelling economically, technologically and in human development.

The more satisfied your employees are, the more likely your clients are to be satisfied in return. The importance of human capital development in the recruiting process will only continue to grow as more millennials enter the workplace.

What is the relationship between human capital and economic growth?

Objectives of the Study The broad objective of the study is to explore the relationship that exists between human capital development and the economic growth in Nigeria over the years under study.impact of human capital becomes strong when the focus Economic development Economic impact Demand for schooling A B S T R A C T Hanushek/Economics of Education Review 37 () – Fundamentally, Alternative however, using school attainment as a measure.

Human capital development is strategic to the Scio-economic development of a nation and includes education, health, labour, employment and woman affairs. Investing in human capital development is. Institutions, Human Capital, and Development Daron Acemoglu,1,2 Francisco A.

Gallego,3 and correlation with various measures of economic development, or equivalently throwing them significant impact of human capital on long-run development, particularly because it is presumed.

8 Benefits of Investing in Your Human Capital Development January 27, / in Employee Benefits, Human Capital / by Anthony Jeanetta Human capital is the measure of the economic value that an employee provides, through their knowledge, skills, and abilities.

Bundell and others () analyzing the impact of human capital on economic growth believe that the growth rate of output depends on the rate of accumulation of human capital and innovation, whose source is the stock of human capital, education level influence labor productivity.

its impact on economic growth and welfare. Human capital, economic growth and welfare are closely interrelated. Section 2 provides an assessment of Africa’s human development in the context of other developing regions. Section 3 turns to the central issue of how to promote economic growth in Africa and the role of human capital in that process.

Impact of human capital on economic development
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