The Implication of Health Human Capital Investment on Nigeria Economic Growth
- December 2, 2021
- Posted by: RSIS
- Categories: Economics, IJRIAS
International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume VI, Issue XI, November 2021|ISSN 2454-6194
The Implication of Health Human Capital Investment on Nigeria Economic Growth
Eche Nwachukwu Austine1, Akeem Adetokun (PhD)2, Anaeto Abigail3 & Salawu Abdulkamaru (PhD)4
1Department of Economics, Air Force Institute of Technology, Kaduna
2,3Department of Banking and Finance, Air Force Institute of Technology, Kaduna
4Country Head of Internal Control, Keystone Bank Sierra Leone
Abstract: The study assessed theimpact of health care investment on Nigeria economic growth (1985-2019). The utilized annual time series data on selected variables; real gross domestic product (RGDP), public health expenditure (PEH), infant mortality rate (IMR), maternal mortality rate (MMR), malarial prevention rate (MPR) a proxy for morbidity rate, life expectancy rate (LFE) and labour force participation rate (LFP) were collected from the statistical Bulletin of Central Bank of Nigeria (CBN), world fact book and indexmundi. The data were checked for stationarity and ARDL bound cointegration test. As such, ARDL approach was utilized in the analysis of the data. Findings from the result showed that PEH, IMR, MMR and MPR exerts negative influence on economic growth in the short term, while LFE and LFP exerts positive influence on economic growth in the short term. Consequently, the result showed that in the long run, PEH exert positive influence, though insignificant. Whereas the effect of other variables IMR, MMR, MPR, LFE, and LFP exerts the same level of influence on economic growth as in the short run. The granger causality test revealed that unidirectional causality runs from PEH to RGDP and from RGDP to PEH. Diagnostic tests such as Normality, serial correlation tests, heteroskedasticity test were carried out on the model output to establish the robustness or otherwise of the models. It was found that the residuals were normally distributed and no serial correlation is present lending credence to the robustness of the work and its ability to make correct forecast. The study recommended that government and stakeholders in health sector should adopt appropriate mechanism that can guarantee and ensure adequate investment in health sector, because Nigeria health sector has the capacity to attract inflow of revenue through health tourism.
Key words: Health, investment, economic growth, maternal mortality, life expetancy
I. INTRODUCTION
In the literature, the relationship between health and the human capital index (HCI) has gotten a lot of attention, especially in the palace of development economics. Human capital’s importance in achieving long-term economic progress has been established (Idowu, 2014). The world’s economies, particularly those in industrialized countries, are attempting to optimize its labor force through comprehensive investments in health care, not only to meet economic development goals but also to ensure long-term viability and survival.
