Health expenditure and economic growth in South-South Geopolitical Zone of Nigeria
Keywords:
Health expenditure, Economic growth, Output and ProductivityAbstract
A nation with healthy population is considered a healthy nation, hence no amount of resources spent on the health sector is considered too much. This research seeks to evaluate the impact of health expenditure on economic growth in Cross River and Akwa Ibom State of Nigeria. Four objectives were formulated to guide and direct the study. The objectives were to investigate the relationship between gross fix capital formation, total health expenditure, government health expenditure, health output funding and Gross Domestic Product growth in Cross River and Akwa Ibom State of Nigeria from 1980-2019 . The ordinary least square regression analysis was employed as the estimating technique to test the impact of health funding on economic growth of Cross River and Akwa Ibom States respectively. The findings showed that there exist a significant relationship between gross fix capital formation, and gross domestic product growth, there exist a significant relationship be total health expenditure and gross domestics product growth in Cross River and Akwa Ibom State. Also government health expenditure and health output funding exert a significant impact on Gross Domestic Product growth(GDPGR) in Cross River and Akwa Ibom State of Nigeria. The study recommended that increase in health expenditure provision be expanded in order to increase productivity in both States.Downloads
References
1. Atilgan E., Kilic D., & Ertugrul H.M. (2017). The Dynamic Relationship Between Health Expenditure and Economic Growth: Is the Health-Led Growth Hypothesis Valid for Turkey? European Journal of Health Economics, 18(5), 567-574
2. Bedir S. (2016). Healthcare Expenditure and Economic Growth in Developing Countries. Advances in Economics and Business, 4(2), 76-86. doi:10.13189/aeb.2016.040202
3. Brown R.L., Durbin J., & Evans J.M. (1975). Techniques for Testing the Consistency of Regression Relations Over Time. Journal of Royal Statistical Society, 37(2), 149-192. Retrieved from http://www.jstor.org/stable/2984889
4. Dickey D.A. & Fuller W.A. (1981). Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root. Journal of the Econometric Society, 49(4), 1057-1072. doi:10.2307/1912517
5. Dolado J.J. & Lütkepohl H. (1996). Making Wald Tests Work for Co-Integrated VAR Systems. Econometric Reviews, 15(4), 369-386. doi:10.1080/07474939608800362
6. Eggoh J., Houeninvo H., & Sossou G.A. (2015). Education, Health and Economic Growth in African Countries. Journal of Economic Development, 40(1), 93-111. doi:10.1
7. Engle R.F. & Granger W.J. (1987). Co-Integration and Error Correction: Representation, Estimation, and Testing. Econometrica: Journal of the Econometric Society, 55(2), 251-276
8. Granger C.W.J. (1969). Investigating Causal Relations by Econometric Models and Cross-Spectral Methods. Journal of the Econometric Society, 37(3), 424-438. doi:10.2307/1912791
9. Halıcı-Tülüce N.S., Doğan İ., & Dumrul C. (2016). Is Income Relevant for Health Expenditure and Economic Growth Nexus? International Journal of Health Economics and Management, 16(1), 23-49
10. Hassan M.S. & Kalim R. (2012). The Triangular Causality Among Education, Health and Economic Growth: A Time Series Analysis of Pakistan. World Applied Sciences Journal, 18(2), 196-207. doi:10.5829/idosi.wasj.2012.18.02.3332
11. Johansen S. (1988). Statistical Analysis of Co-Integration Vectors. Journal of Economic Dynamics and Control, 12(2-3), 231-254. doi:10.1016/0165-1889(88)90041-3
12. Johansen S. & Juselius K. (1990). Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money. Oxford Bulletin of Economics and Statistics, 52(2), 169-210. doi:10.1111/j.1468-0084.1990.mp52002003.x
13. Kwiatkowski D., Phillips P.C., Schmidt P., & Shin Y. (1992). Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root. Journal of Econometrics, 54(1-3), 159-178. doi:10.1016/0304-4076(92)90104
14. Maitra B. & Mukhopadhyay C.K. (2012). Public Spending on Education, Health Care and Economic Growth in Selected Countries of Asia and the Pacific. Asia Pacific Development Journal, 19(2), 19-48
15. Munnell A.H. (1992). Policy Watch: Infrastructure Investment and Economic Growth. The Journal of Economic Perspectives, 6(4), 189-198. Retrieved from http://www.jstor.org/stable/2138275
16. Mushkin S.J. (1962). Health as an Investment. Journal of Political Economy, 70(5), 129-157. doi:10.1086/258730
17. OECD. (1980-2014). Organization for Economic Cooperation and Development Total Health Expenditure Rate Database. Retrieved from http://stats.oecd.org/index.aspx?DataSetCode
18. Ozturk S. & Topçu E. (2014). Health Expenditures and Economic Growth: Evidence from G8 Countries. International Journal of Economics and Empirical Research, 2(6), 256-261
19. Pesaran M.H., Shin Y., & Smith R.J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3), 289-326. doi:10.1002/jae.616
20. Phillips P.C. & Perron P. (1988). Testing for a Unit Root in Time Series Regression. Biometrika, 75(2), 335-346. doi:10.2307/2336182
21. Pradhan R.P. (2010). The Long Run Relation Between Health Spending and Economic Growth in 11 OECD Countries: Evidence from Panel Co-Integration. International Journal of Economic Perspectives, 4(2), 427-438
22. Schultz T.P. (2005). Productive Benefits of Health: Evidence from Low-Income Countries. IZA Discussion Paper No.1482, Yale University Economic Growth Center Discussion Paper No.903. Retrieved from https://ssrn.com/abstract=645001
23. Smith J.P. (1998). Socioeconomic Status and Health. American Economic Review, 88(2), 192-196. Retrieved from http://www.jstor.org/stable/116917
24. Strauss J. & Thomas D. (1998). Health, Nutrition and Economic Development. Journal of Economic Literature, 36(2), 766-817. Retrieved from http://www.jstor.org/stable/2565122
25. Sülkü S.N. & Caner A. (2011). Health Care Expenditures and Gross Domestic Product: The Turkish Case. The European Journal of Health Economics, 12(1), 29-38
26. Toda H.Y. & Yamamoto T. (1995). Statistical Inference in Vector Auto Regressions with Possibly Integrated Processes. Journal of Econometrics, 66(1-2), 225-250. doi:10.1016/0304
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
