IDEAS home Printed from https://ideas.repec.org/a/aoj/ajeaer/v6y2019i2p130-139id1088.html
   My bibliography  Save this article

Health Expenditure, Health Outcomes and Economic Growth in Nigeria

Author

Listed:
  • Joshua Adeyemi Ogunjimi
  • Adedeji Oluwatosin Adebayo

Abstract

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.

Suggested Citation

  • Joshua Adeyemi Ogunjimi & Adedeji Oluwatosin Adebayo, 2019. "Health Expenditure, Health Outcomes and Economic Growth in Nigeria," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(2), pages 130-139.
    • Handle: RePEc:aoj:ajeaer:v:6:y:2019:i:2:p:130-139:id:1088
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/AJEER/article/view/1088/1182
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jacob Novignon & Solomon Olakojo & Justice Nonvignon, 2012. "The effects of public and private health care expenditure on health status in sub-Saharan Africa: new evidence from panel data analysis," Health Economics Review, Springer, vol. 2(1), pages 1-8, December.
    2. Deluna, Roperto Jr & Peralta, Tiffany Faith, 2014. "Public Health Expenditures, Income and Health Outcomes in the Philippines," MPRA Paper 60115, University Library of Munich, Germany.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
    5. repec:dau:papers:123456789/3882 is not listed on IDEAS
    6. Wolde-Rufael, Yemane, 2005. "Energy demand and economic growth: The African experience," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 891-903, November.
    7. Becchetti, Leonardo & Conzo, Pierluigi & Salustri, Francesco, 2017. "The impact of health expenditure on the number of chronic diseases," Health Policy, Elsevier, vol. 121(9), pages 955-962.
    8. Serge Mandiefe Piabuo & Julius Chupezi Tieguhong, 2017. "Health expenditure and economic growth - a review of the literature and an analysis between the economic community for central African states (CEMAC) and selected African countries," Health Economics Review, Springer, vol. 7(1), pages 1-13, December.
    9. Toda, Hiro Y. & Yamamoto, Taku, 1995. "Statistical inference in vector autoregressions with possibly integrated processes," Journal of Econometrics, Elsevier, vol. 66(1-2), pages 225-250.
    10. Elola, J. & Daponte, A. & Navarro, V., 1995. "Health indicators and the organization of health care systems in Western Europe," American Journal of Public Health, American Public Health Association, vol. 85(10), pages 1397-1401.
    11. Nwanosike Dominic U. & Anthony Orji & Joan C. Okafor & Sam Umesiobi, 2015. "Progressive Health Spending and Health Outcomes in Nigeria: The Case of Malaria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(12), pages 1-12, December.
    12. Boachie, Micheal Kofi & Ramu, K., 2015. "Public Health Expenditure and Health Status in Ghana," MPRA Paper 66371, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Mazharul Islam & Mohammad Nazrul Islam Mondal & Haitham Khoj, 2023. "Effects of Health Factors on GDP Growth: Empirical Evidence from Saudi Arabia," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    2. Edmond Kamanda & Yang Lanpin & Brima Sesay, 2022. "Causal nexus between health expenditure, health outcome and economic growth: Empirical evidence from Sub‐Saharan Africa countries," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(4), pages 2284-2302, July.
    3. Kossi Atsutsè Dziédzom Tsomdzo & Yacobou Sanoussi & Kodjo Evlo, 2022. "Investissement en santé et état de santé dans les pays de l'UEMOA: entre contribution publique et privée?," African Development Review, African Development Bank, vol. 34(2), pages 244-254, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joshua Adeyemi Ogunjimi & Adedeji Oluwatosin Adebayo, 2019. "Health Expenditure, Health Outcomes and Economic Growth in Nigeria," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(2), pages 130-139.
    2. Liu, Yaping & Sadiq, Farah & Ali, Wajahat & Kumail, Tafazal, 2022. "Does tourism development, energy consumption, trade openness and economic growth matters for ecological footprint: Testing the Environmental Kuznets Curve and pollution haven hypothesis for Pakistan," Energy, Elsevier, vol. 245(C).
    3. Ghosh, Sajal, 2010. "Examining carbon emissions economic growth nexus for India: A multivariate cointegration approach," Energy Policy, Elsevier, vol. 38(6), pages 3008-3014, June.
    4. Cosimo Magazzino, 2016. "The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1152729-115, December.
    5. Kumar, Ronald Ravinesh & Stauvermann, Peter Josef & Patel, Arvind & Kumar, Radika Devi, 2014. "Exploring the effects of energy consumption on output per worker: A study of Albania, Bulgaria, Hungary and Romania," Energy Policy, Elsevier, vol. 69(C), pages 575-585.
    6. Shakoor Ahmed & Khorshed Alam & Afzalur Rashid & Jeff Gow, 2020. "Militarisation, Energy Consumption, CO2 Emissions and Economic Growth in Myanmar," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 615-641, August.
    7. Muhammad Shahbaz & Mete Feridun, 2012. "Electricity consumption and economic growth empirical evidence from Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(5), pages 1583-1599, August.
    8. Boufateh, Talel & Ajmi, Ahdi Noomen & El Montasser, Ghassen & Issaoui, Fakhri, 2013. "Dynamic relationship between energy consumption and income in Tunisia: A SVECM approach," MPRA Paper 44539, University Library of Munich, Germany.
    9. Fazıl Kayıkçı & Melike Bildirici, 2015. "Economic Growth and Electricity Consumption in GCC and MENA Countries," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 303-316, June.
    10. Yemane Wolde-Rufael, 2009. "The Defence Spending-External Debt Nexus In Ethiopia," Defence and Peace Economics, Taylor & Francis Journals, vol. 20(5), pages 423-436, October.
    11. Ziramba, Emmanuel, 2009. "Disaggregate energy consumption and industrial production in South Africa," Energy Policy, Elsevier, vol. 37(6), pages 2214-2220, June.
    12. Chala Amante Abate & Dagim Tadesse Bekele & Belisty Bekalu Ayenew & Adisu Abebaw Degu, 2023. "The Relationship Between Natural Resource Rent and Economic Growth in Nigeria," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 13(4), pages 3-25.
    13. Leanghak Hok, 2020. "Competitiveness and government spending in Cambodia: An autoregressive distributed lag approach," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 16(02), pages 27-40.
    14. Eléazar Zerbo, 2017. "Energy consumption and economic growth in Sub-Saharan African countries: Further evidence," Economics Bulletin, AccessEcon, vol. 37(3), pages 1720-1744.
    15. Desire Wade Atchike & Zhen-Yu Zhao & Geriletu Bao, 2020. "The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 507-515.
    16. Ewodo-Amougou, Marcel Rodrigue & Sapnken, Flavian Emmanuel & Mfetoum, Inoussah Moungnutou & Tamba, Jean Gaston, 2023. "Analysis of the relationship between oil rent and crude oil production in Cameroon: Evidence from ARDL and NARDL models," Resources Policy, Elsevier, vol. 85(PB).
    17. Samson Adeniyi Aladejare, 2019. "Testing the Robustness of Public Spending Determinants on Public Spending Decisions in Nigeria," International Economic Journal, Taylor & Francis Journals, vol. 33(1), pages 65-87, January.
    18. Sari, Ramazan & Soytas, Ugur, 2009. "Are global warming and economic growth compatible? Evidence from five OPEC countries?," Applied Energy, Elsevier, vol. 86(10), pages 1887-1893, October.
    19. Kumar, Ronald Ravinesh & Kumar, Radika, 2013. "Effects of energy consumption on per worker output: A study of Kenya and South Africa," Energy Policy, Elsevier, vol. 62(C), pages 1187-1193.
    20. Shahbaz, Muhammad & Sarwar, Suleman & Chen, Wei & Malik, Muhammad Nasir, 2017. "Dynamics of electricity consumption, oil price and economic growth: Global perspective," Energy Policy, Elsevier, vol. 108(C), pages 256-270.

    More about this item

    Keywords

    Health expenditure; Life expectancy; Infant mortality; Maternal mortality; Toda-Yamamoto causality test; Nigeria.;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:ajeaer:v:6:y:2019:i:2:p:130-139:id:1088. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/AJEER/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.