HUMAN CAPITAL EXPENDITURE AND SCHOOL ENROLMENT IN NIGERIA: AN INTERACTIVE EFFECT
Olawunmi Omitogun1, Adedayo E. Longe2
1 Department of Economics, Olabisi OnabanjoUniversity, Ago-Iwoye.
2Department of Economics, Olabisi OnabanjoUniversity, Ago-Iwoye.
This study investigates the interactive effect of human capital expenditure (health and education) on school enrolment in Nigeria from 1990 to 2013. The study employed econometrics techniques such as the correlation matrix, unit root test, Johansen cointegration, and Fully Modified Ordinary Least Squares regression techniques to analyse the data used in the study. The data are sourced from the Central Bank of Nigeria (CBN) Statistical bulletin (2013). The findings revealed that, interactively, government expenditure on education and health impacted positively and insignificantly on school enrolment in Nigeria. Inflation rate, exchange rate and gross capital formation also had a positive impact on school enrolment in Nigeria. The study therefore recommends that, government should increase its expenditure on education and health sector and also supply basic needs of the sectors to increase their output.
JEL: I, I18, I22
Keywords: Education and Health Expenditure, School Enrolment, Econometrics techniques, Nigeria