A Three-Factor Model of Inclusive, Sustainable and Resilient Economic Development for Developing Countries

Abstract

Nigeria had adopted various development plans in order to achieve MDGs. Achievement of MDGs is crucial to effective implementation of SDGs agenda aimed at fostering inclusive, sustainable and resilient economic development. In spite of these efforts, the Nigerian economy is still characterized by low capital formation, chronic unemployment, a large percentage of the population living on primary sector and negligible savings. Indeed, Nigeria’s performance in MDGs was quite unimpressive. This is partly attributable to inappropriate human capital theory of economic growth on which these development plans were based. Therefore, this study focused on building a model of inclusive, sustainable and resilient economic development which would yield potent factors and describe activities that could link human capital investment with aggregate economic activities to induce economic development with full participation of target population. The study covered the period, 1981 - 2014. Data were sourced from Central Bank of Nigeria, National Bureau of Statistics and World Development Indicators. Data were analyzed using exploratory factor analysis technique. Study revealed that minimum wage, girl-child education and special intervention fund were factors which influenced the relationship among human capital, real GDP and economic development. It was concluded that the outcome of this study which is a three-factor model of inclusive, sustainable and resilient economic development is essentially a human capital theory of economic development capable of linking the different sectors of the economy. It was recommended, inter alia, that a dynamic employment policy would involve economic empowerment of women through job reservation in paid labour.