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ABSTRACT
It has been observed that human capital development can foster the inflow of Foreign Direct Investment (FDI), particularly when the human capital is highly advanced and sophisticated. This forms the basis of this research. The objective of this study is to examine the impact of human capital development on the inflow of FDI in the Nigerian economy between 1986 and 2022. The independent variables were government expenditure on health, on education, life expectancy, openness of the economy and gross capital formation. The research was indebted to Autoregressive Distributed Lag (ARDL) model as an estimation technique. Data were sourced from the Central Bank of Nigeria Statistical bulletin and the World Bank Development Indicator (WDI). The Human Capital Development (HCD) was captured, using Human Development Index (HDI). The stationarity test were carried out so as to avoid spurious results. The co-integration test revealed that there was a along run relationship between the FDI and the independent variables. The result of long-run estimations shown that Government investment in education has a positive and significant impact on foreign direct investment in the long run, also shows that one percent increase in government expenditure on education will lead to one hundred and fifty-three percent increase in foreign direct investment in the long run. It is therefore recommended that the government should increase there spending on education to with a view of attracting more inflow of FDI.
