Human Development and Macroeconomic Shocks in Nigeria: An Empirical Investigation

This paper explores how human development responds to selected macroeconomic shocks in Nigeria. The study employed the Sen’s capabilities approach as analytical and posited that level of education, health status, quality investment, technology, government fiscal monetary policies are plausible determinants development. We used Structural Vector Autoregression (SVAR) estimate responses such shocks, which inflation, interest rate, capital expenditure, exchange current account balance, savings shocks. Forecast Error Variance Decomposition (FEVD) Impulse Response (IR) showed a policy shock is major factor influencing outcomes. finding underscored important role plays enhancing well-being its citizens. Fiscal tools (such investment health, housing, infrastructure) essential for In particular, outcome found respond positively from real rates, felt significantly short run. concluded negatively affected by sudden decline federal government’s budget expenditure.