Abstract
This study investigates the Impact of Healthcare Expenditure on Micro, Small, and Medium Enterprises (MSME) growth in Nigeria from 2000 to 2020 using an Error Correction Model (ECM). The primary objective was to analyze the long-term dynamics between healthcare expenditure, population growth rate (PGR), real gross domestic product (RGDP), inflation (INF), and MSME growth. The findings reveal several key insights. Firstly, increased healthcare expenditure positively and significantly correlates with MSME growth, indicating that investments in healthcare stimulate economic development by fostering a healthier population with greater demand for MSME goods and services. Secondly, a positive and significant relationship exists between real GDP growth and MSME growth, highlighting the significance of overall economic prosperity for MSMEs. Thirdly, while a positive relationship between population growth rate and MSME growth is identified, its lack of statistical significance suggests the influence of other factors. Finally, inflation does not significantly affect MSME growth during the study period. To promote MSME growth, policymakers should prioritize increased healthcare spending, encourage health insurance adoption, invest in healthcare infrastructure, support healthcare research, implement workplace wellness programs, foster public-private healthcare partnerships, and promote health education and awareness campaigns. These recommendations aim to leverage the positive relationship between healthcare expenditure and MSME growth for economic development and improved healthcare access in Nigeria.
