ABSTRACT
The analysis conducted on the impact of healthcare expenditure on labour productivity in Nigeria from 1980 to 2022 reveals several important insights. While the relationship between healthcare spending and labour productivity is multifaceted, the findings offer valuable implications for policymakers aiming to enhance productivity outcomes amidst healthcare investment endeavors.
Firstly, the study underscores the nuanced nature of the relationship between healthcare expenditure and labour productivity. While certain factors, such as real GDP, exhibit robust and statistically significant associations with productivity levels, others, such as lagged labour productivity and population growth rate, appear to have minimal influence within the model's framework. Additionally, the marginal negative impact of health expenditure on labour productivity suggests the need for careful consideration and further investigation into the efficiency and effectiveness of healthcare spending in driving productivity growth.
Furthermore, the findings emphasize the importance of holistic and targeted policy interventions across education, healthcare, and economic sectors to foster sustainable productivity growth in Nigeria. Enhancing healthcare efficiency, investing in health promotion and disease prevention, improving healthcare infrastructure, promoting education and skills development, fostering economic growth and job creation, and promoting multisectoral collaboration are identified as key strategies to address the complex challenges related to healthcare expenditure and labour productivity.
