Analysis of the Effect Public Expenditure on Tertiary Education has on Human Capital Development in Nigeria

Abstract

This paper examined the effect public expenditure on tertiary education had on human capital development in Nigeria within the period 1977-2014 using co-integration and error correction mechanism. The findings revealed that tertiary institution enrolment and gross capital formation were both statistically significant and positively related to high level manpower (proxy for human capital development) in the long and short-run periods while public expenditure on education exhibited negative impact, though statistically insignificant, on high level manpower in the long and short-run periods. This appears to constitute a major policy challenge considering the yearly increase in budgetary allocation to education in the country. Implications of these findings and policy option were thereafter presented.