Explaining the incidence of household healthcare expenditure in Nigeria under a regime of low fiscal provision: Is the exchange rate important? (original) (raw)
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Nigerian Economic Society, 2019
The share of government expenditure in total health spending in Nigeria has been persistently low while the share of household health expenditure has been almost always rising. Meanwhile, the Naira exchange rate against the US Dollar has been rising in spite of the sustained application of exchange rate policy over the years. This study investigates the effect of public health expenditure and the everdepreciating exchange rate on household health expenditure while controlling for gross domestic product per capita and consumer price index. We determined the stationarity properties of the series using the Augmented Dickey Fuller test to confirm that none of the variables was integrated after second difference. The ARDL bound test for cointegration and the Johansen procedure both confirmed the existence of long-run relationship among the series. Coefficients obtained using the Autoregressive Distributed Lag Model revealed that public health expenditure has negative impact on household health expenditure in both the short-and long-run. Household health expenditure is also found to be exchange rate elastic in the longrun. The VECM Granger causality result revealed that there is a long-run unidirectional causality running from public health expenditure, exchange rate, income and domestic prices to household health expenditure. Our study suggests fiscal expansion for health, exchange rate appreciation measures and health risk protection for both the formal and informal sectors.
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This study examined the impact of public health spending on health outcome in Nigeria from 1981-2018. The importance of quality health in economic growth and development agenda have propelled nations (both developed and developing) in promoting health interventions through public spending on health in order to ensure improved quality health outcome. As a result study on the subject matter becomes apt. The specific objectives of the study is to; examine the impact of public health spending on health outcomes such as newborns protected against tetanus, tuberculosis treatment success rate and prevention of measles in Nigeria. The study made use of secondary data; the data sets were subjected to ADF unit pre-test statistic. The data were analysed using ADF unit root test, EngelGranger co-integration test and error correction mechanism (ECM). The ADF results revealed that the variables were integrated at order one and zero. Hence the study adopted ARDL bounds testing in order to capture ...
HEALTH EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA. NEW EVIDENCE.
JOURNAL OF ACADEMIC RESEARCH IN ECONOMICS , 2019
The paper employs the ARDL (bounds test) approach to cointegration and error correction analysis to investigate the long run and short run effects of health expenditure on economic growth in Nigeria in the period from 1995 to 2013, while controlling for the effects of domestic investment, net foreign direct investment and exchange rate. The empirical evidence validates the Mushkin’s health-led growth hypothesis as total expenditure on health is observed to have had positive and significant long-run and short-run effects on the real GDP. Further evidence from the analysis is that gross capital formation (proxy for domestic investment) also impacts positively on real GDP in the long- and short-run. The effect of net FDI on real GDP is observed to be negative in the short-run, but statistically not significant in the long run. The short-run effect of currency depreciation on the real GDP is negative and significant, while the long-run effect is positive and significant. The paper recommends, inter alia, increased budgetary allocation to the health sector to enhance its contribution to the growth of Nigeria’s economy.
Determinants of Public Health Expenditure in Ghana: A Cointegration Analysis
Journal of Behavioural Economics Finance Entrepreneurship Accounting and Transport, 2014
This paper examines the determinants of public healthcare expenditure in Ghana using annual time series data from 1970 to 2008. The paper explored the stationarity and cointegration properties between public healthcare expenditure, and environmental and socio-economic indicators using ERS optimal point unit root test, and Engle-Granger cointegration tests. By this, we examined the long-run impacts of real GDP, CO 2 emissions, crude birth rate, life expectancy, inflation, and urbanization on public healthcare expenditure in Ghana. FMOLS technique was applied to estimate the long run multipliers of public health expenditure model. The results of the paper show that public health expenditure in Ghana is positively affected by real GDP, policies that aim to improve healthiness of the population as measured by life expectancy and crude birth rates. We find strong evidence that healthcare is a necessity in Ghana. These variables need more and critical attention to achieve improved healthcare.
Health Expenditure, Health Outcomes and Economic Growth in Nigeria
Asian Journal of Economics and Empirical Research, 2019
This study examined the relationship among health expenditure, health outcomes and economic growth in Nigeria for the period between 1981 and 2017. This study adopted the Toda-Yamamoto causality framework to examine these relationships. The Augmented Dickey Fuller unit root test was used to check for maximum order of integration of the variables used in the study and the result was one while the Autoregressive Distributed Lag (ARDL) Bounds test approach to cointegration was used to investigate if a long-run relationship exists among the macroeconomic variables used in the study and the result was in the affirmative. The results of the Toda-Yamamoto causality tests showed a unidirectional causality running from health expenditure to infant mortality while there is no causality between real GDP and infant mortality; a unidirectional causal relationship running from health expenditure and real GDP to life expectancy and maternal mortality; and a unidirectional causal relationship running from real GDP to health expenditure. This study therefore recommended that the Nigerian government should make concerted efforts geared towards increasing the health expenditure at least to meet up with the WHO"s recommendation that all countries should allocate at least 13 per cent of their annual budget to the health sector for effective funding as this would bring desired health outcomes and employ the use of modern technology and the services of professional health personnel should be sought to combat the high incidence of maternal and infant mortality in the health sector in Nigeria.
IMPACT OF GOVERNMENT HEALTH EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA: 1990-2017
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PUBLIC HEALTH EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA: WHAT CAUSES WHAT
This paper examined the feedback relationship between public healthcare expenditure and economic growth in Nigeria for the period 1970 – 2013. The Augmented Dickey – Fuller unit root test, Johansen's cointegration rank test and the Granger – Causality test were applied on per capita real GDP, per capita expenditure on health, per capita expenditure on education and gross capital formation. Results showed that all the series became stationary after differencing once and there was also a single cointegrating equation indicating the existence of a long-run relationship among the variables. The study rejected the feedback hypothesis between public health expenditure and economic growth in Nigeria and upheld the health expenditure – led – growth hypothesis. That is, it is expenditure on health that leads to growth and not the other way round. It was therefore recommended that efforts to foster economic growth in Nigeria should also consider increasing budgetary allocation to the health sector especially in the area of research and development. Efforts should also aim at ensuring that funds allocated to the sector are appropriately distributed and utilized.
ANY NEXUS BETWEEN PUBLIC HEALTH EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA
IIARD International Journal of Economics and Business Management, 1(8), 1-12. https://www.iiardpub.org , 2015
This study investigated the impact of public health expenditure on economic growth in Nigeria between 1981 and 2013. Data was sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and Annual reports of various issues. The stationarity of the variables were tested using the Augmented Dickey-Fuller (ADF) unit root test. The ordinary least square (OLS) multiple regression, equation estimation, Johansen multivariate cointegration and Granger Causality analytical techniques were the econometric methods used to analyze the data. Results indicate a significant and positive long run relationship between public health expenditures and economic growth. There was a unidirectional causality between economic growth proxied by GDP and all public health variables in the model namely; Gross Capital Formation (GCF), Total Education Expenditure (TEE) and Total Health Expenditure (THE). The major policy recommendation that emerged from the study is the need for Nigerian policy makers to pay more attention to the health sector and increase its budgetary allocation. Nevertheless the key to good results lies in establishing a strong institutional system that, to the extent possible, links specific expenditure and revenue decisions so as to ensure the usage of the allocated fund as transparently as possible.
The Link between Government Health Expenditure and Health Outcome in Nigeria, 1981-2019
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This study examines the relationship between government health expenditure and health outcome in Nigeria using time series data on infant mortality, government health expenditure, school enrollment ratio and the gross domestic product for the period covering 1981 to 2020. The study sourced data from the World Bank data base and Central Bank of Nigeria (CBN) statistical bulletin. Infant mortality rate was used as a proxy for health outcome based on data availability and the literature. As dictated by the data, the study used Vector Autoregressive model (VAR) to analyse the relationship between government health expenditure and health outcome in Nigeria for the period under study. The variables in the model were all integrated of order one and were cointegrated using the Johansen's cointegration test. Government health expenditure is found to have a negative relationship with infant mortality in Nigeria; an indication that an increase in health expenditure has the tendency to decrease infant mortality in Nigeria. The study finds school enrollment to be significant. Therefore, the study recommends among other things that government expenditure should be increased to diminish infant mortality as well as enhance school enrolment.
Conventional wisdom holds that health is central to human general well-being, as well as a prerequisite for increased productivity, and overall economic growth and development of an economy. This explains why governments across the globe are making enormous efforts to achieve good health for all and Nigeria is no exception. Regrettably, despite government's efforts to improve the health situation of the citizens through massive health care expenditure, the Nigerian health outcomes (such as life expectancy and mortality rate) are still considered one of the poorest and most miserable in the world. Thus, the study follows a causality approach to examining the relationship among government health expenditure, health outcomes, and economic growth in Nigeria during the period 1970 – 2013. Unlike previous studies that relied on the traditional Granger causality test for such purpose, the study utilizes the approach provided by Toda and Yamamoto (1995) for causality analysis which is based on a modified WALD statistic (χ 2 distribution). The order of integration of variables was determined using ADF and KPSS while cointegration test was carried out using the Johansen approach. The result of the Johansen cointegration test shows that despite the varying order of integration of variables of the study, they still have longrun equilibrium relationship. The TY causality test revealed that government health expenditures do not directly influence economic growth, but indirectly through health outcomes such as mortality rate and life expectancy. The study therefore concludes that government should always consider health outcomes (mortality rate and life expectancy) whenever policy actions targeted at health care expenditures are meant to drive economic growth.