An Assessment of Public Health Expenditure, Health Outcome and Economic Growth in Nigeria (1980 -2019)
- March 3, 2021
- Posted by: RSIS
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue I, January 2021 | ISSN 2454–6186
Ayoade Olabisi Simeon1*, Monica Alagbile Orisadare2, Adeyemi Taiwo George3, Adediwura Micheal Olamide4
1,2,3 Department of Economics, Obafemi Awolowo University, Ile-Ife, Nigeria
4Departmwnt of Economics, Adeleke University, Ede, Nigeria
Abstract: The study assessed the relationship between public health expenditure, health outcome and economic growth in Nigeria between 1980 to 2019. This is due to the relevance of human capital development as a propeller of National development, especially in time like this when the global economy has become knowledge based. ARDL was used to achieve the objective of the study. The result established that there exist a relationship between health human capital development and economic growth in Nigeria. Hence, the short run result for Average Adult Survival Rate shows a positive and significant effect on the economic growth; while the long run result of the same variable shows an insignificant negative effect on the economic growth. The result further revealed a positive and significant relationship between Food Supply and economic growth both in the short run and long run. In the same vein, the result for Population Growth rate shows a positive and significant effect on the economic growth both in the short run and long run. However, the result for Healthcare Expenditure reveal a negative but insignificant effect on the economic growth both in short run and long run; and similarly, the result for Nitro Oxide Emission shows a negative effect on the economic growth both in the short run and long run; and lastly, the result for school enrollment revealed a positive but insignificant effect on the economic growth both in the short run and long run.
Based on the research findings of this study, it is recommended that government should redesign her policy toward health care expenditure in particular and human capital development in general; and put in place machineries for implementing and monitoring this policy for effective implementation. Fiscal policy can also be used to improve the allocation and utilization of funds in this sector. In addition, there should be higher investment in health infrastructure and control of diseases that will reduce the death rate in order to reduce the negative effect of the death rate on growth.
Keywords: Health Expenditures, Adult Survival rate, Population, School Enronlment rate, Economic Growth.
I. INTRODUCTION
Health is one of the vital factors that determine the quality of human capital, a necessary factor for economic growth. Therefore, any public expenditure on health can be viewed as a form of investment in the human capital development of a nation (Dang et al., 2016).
