Openness, Competitiveness and Human Capital Development in Nigeria

Abstract

The study examined the effect of openness on the competitiveness level in Nigeria and how both openness and competitiveness have affected human capital development in the country. The study adopted the classical linear regression and thus used Autoregressive Distributed Lag technique. The data were sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin 2021 and World Development Indicators. Openness, Ease of Doing Business (EODB), Foreign Direct Investment (FDI), imports on capital goods and Government Efficiency (GOVEFF) from 1980 to 2022. Some of the data were sourced from World Development Indicator were some of the variables used in the study. The results showed that openness had a positive and significant effect on Nigeria competitiveness and thus on human capital development. The result described a number of drivers for Nigerian openness, and competitiveness. Based on these results, the study recommended that the government implement policies to ensure that companies flourish in a conducive setting. In Nigeria, in particular, a seamless business registration process should be created. This study suggests other steps that the government should put in place to open up the economy and thus make Nigeria more competitive in an increasingly global market which are credit facilities, tax incentives, and infrastructure provision, pursue consistent and well-targeted monetary policies by monetary authorities in order to stabilize the price of the domestic currency (the naira), and curb inflation.