Abstract:

This study examined the effect of government expenditure on “human capital on stock market growth in Nigeria and South Africa, from 1990 to 2018. The specific objectives of this study were to: examine the effect of government education expenditure, government health expenditure, government social service expenditure, government human capital expenditure on market capitalization in Nigeria and South Africa. Central Bank of Nigeria and South Africa Statistical Bulletin were used as secondary source. ARDL technique was adopted in the study. It was revealed that government education expenditure had no significant effect on the Stock Market capitalization in Nigeria and South Africa both in the long run and short run. Also, government health expenditure had no significant effect on the Stock Market capitalization in Nigeria and South Africa both in the long run and short run and lastly, it was discovered that government social services expenditure had no significant effect on the Stock Market capitalization in Nigeria and South Africa both in the long run and short run”. The study on the bases of these findings recommended among others that governments of should increase the financial allocation to education, health and other human capital development sectors and activities to improve skills and the income generation capacity of human capital towards enhancing investment and by extension the development of the Nigeria Stock Market.

Keywords:

Human capital expenditure, stock market growth, education expenditure, health expenditure, social service expenditure, market capitalization.

How to Cite:

Anthony Ogar, Fidelis Atseye, Wilson Ani, Basil Eja and Pius Akan. Effect of Government Expenditure on Human Capital on Stock Market Growth a Study of Nigeria and South Africa. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a226/