HEALTH EXPENDITURE, HEALTH OUTCOMES AND ECONOMIC GROWTH IN NIGERIA (1981-2021)

ABSTRACT

This study evaluates the impact of health expenditure and health outcomes on economic performance in Nigeria for the period of 1981 to 2021. The study adopted OLS method to examine these relationships. The study checked for unit root using Augmented Dickey-Fuller (ADF) to check if the variables are stationary or non-stationary. To check that long run relationship exists, the study also used the Johansen Co-integration test. This shows the existence of no long-run relationship among the variables employed in the study. An error correction model was determined to show the rate of correction of the deviation of short run dynamics from the long run movements of the model.Results confirm a statistically significant reconciliation  rate of 98% at 5% level. The Durbin-Watson test was carried out to check for autocorrelation.

The study found that  Health expenditure shows a positive and significant impact on economic growth on the long run and infant mortality rate was shown to have a negative and significant impact on economic growth at the long run  and life expectancy ratio was shown to have a positive  and significant impact on economic performance and gross capital formation was shown to have a negative  and significant impact on economic growth at the long run while at the short run the study found that Health expenditure shows a negative and non-significant impact on economic growth  and infant mortality rate was shown to have a positive  and significant impact on economic growth and life expectancy ratio was shown to have a positive  and non-significant impact on economic performance and gross capital formation was shown to have a positive  and non-significant impact on economic growth. The study therefore recommends that government should ensure that health investment are directed to improving the health standard of the population.Policies must be put in place to ensure that funds set aside for health expenditure and health growth are used for primarily designed purposes and not diverted for other things.The Government should allocate more funds to health expenditure seeing from the study that they occupy a very important place in determining Nigeria's economic growth and life mortality rate.The government should put more effort in ensuring better health facilities and road are built to enhance life expectancy and minimize accident as this would play a vital role in economic growth and development and wellbeing of the population. Additionally, a higher income allows individuals or Government to make investments that yields better health.