Dynamic linkage between Economic growth and human development: time series evidence from Nigeria

Date

2018-09-07

Advisors

Journal Title

Journal ISSN

ISSN

0954-1748

Volume Title

Publisher

Wiley

Type

Article

Peer reviewed

Yes

Abstract

A consensus among academics and policymakers holds that investing in human development not only improves lives, but also by itself promotes stellar economic growth. We investigate these claims by estimating the two-way causality between economic growth and human development in Nigeria over the period from 1961 to 2015. By employing three statistical frameworks (Gregory-Hansen Cointegration, Stock-Watson DOLS and VECM), our estimates suggest the following. First, economic growth and human development share a long run relationship, that is, they are cointegrated. Second, despite the two variables sharing a long run relationship, only economic growth can exercise a positive effect on human development, and no evidence of reverse causality was observable. Far importantly, we prescribe a policy recommendation from these findings.

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

Cointegration, Economic Growth, Human Development, VECM

Citation

Chikalipah, S. and Okafor, G. (2018) Dynamic linkage between Economic growth and human development: time series evidence from Nigeria. Journal of International Development, 31 (1), pp. 22-38

Rights

Research Institute

Institute for Applied Economics and Social Value (IAESV)