The Link between Government Health Expenditure and Health Outcome in Nigeria, 1981-2019
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Published:
Dec 15, 2022
Keywords:
VAR, Government, Health expenditure, Mortality, Health Outcome, Nigerian
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Abstract
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.
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Umaru, Aishat Princess, Mathew Ekundayo Rotimi, and Naphtali Watramarhyel John. 2022. “The Link Between Government Health Expenditure and Health Outcome in Nigeria, 1981-2019”. ABUAD Journal of Social and Management Sciences 3 (1), 12-29. https://doi.org/10.53982/ajsms.2022.0301.02-j.
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References
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Erick (2021). Introduction to the Fundamentals of Vector Autoregressive Models. Aptech Data Analysis blog published 15th April.
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http://www.worldmap.com/Nigeria
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Isaac, I., Sunday, S.O., & Adeleye, B.M. (2017). An empirical analysis of public health Expenditure on life expectancy: evidence from Nigeria. British Journal of Economics Management & Trade, 17(4), 1-17.
Johansen, S. and Juselius, K. (1990). Maximum Likelihood Estimation and Inference on Cointegration with Applications to Demands for Money. Oxford Bulletin of Economics and Statistics, 52, 169-210.
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Kim, K. K. and Lane, S. (2013). Government Health Expenditure and Public Health Outcome: A Comparative Study among 17 Countries and Implications for US Health Care Reform. American International Journal of Contemporary Research, 3(9). 8-13.
Kulkarni, L. (2016). Health inputs, health outcomes and public health expenditure: evidence from BRICS. International Journal of Applied Economics, 31(1), 72-84.
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Otu, A., Ameh, S., Egbe,O., Alade, E., Ekuri, S and Idris, J. (2017). An account of the Ebola virus disease outbreak in Nigeria: implications and lessons learnt. BMC Public Health, July 10, 18(1), 3. https://pubmed.ncbi.nlm.nih.gov/28693453/
Osawe, S., W. (2014). Determinant of Infant Mortality Rate: A Panel Data Analysis of African Countries. Developing country Studies, 4(18), 111-114.
Rotimi, M. E., & Ngalawa, H. (2017). Oil price shocks and economic performance in Africa’s oil exporting countries. Acta Universitatis Danubius Economica, 13(5). https://fulokoja.edu.ng/assets/publications/448_oil-price-shocks-and-economic-performance-in-africa%E2%80%99s-oil-exporting-countries.pdf
Salami, K., D., Olabode, O., S. Atoyebi, O. K, Lawal A., S., & Danmola R. (2017). Effects of Government health and education expenditures on economic growth in Nigeria. Journal International Journal of social & management sciences, Madonna university, 1(1), 118-130.
Sims, C. (1980). Econometrics and reality. Econometrica, 48(1), 1-48.
United Nations. (2004). Progress towards the Millennium Development Goals, 1990-2004. Discussion Paper. Statistics division, Department of Economic and Social Affairs of the United Nations Secretariat. http://unstats.un.org/unsd/mi/mi coverfinal.htm.
United Nations International Children’s Emergency Fund (UNICEF) 2017
Victoria, C.G., Vaughan, J. P., Barros, F. C., Silva, A.C., & Tomasi, E. (2000). Explaining trends in inequalities: evidence from Brazilian child health studies. The Lancet, 356(9235), 1093
World Malaria Report (2020).
World Health Organization (2021). WHO data base.
World Bank data (2019).
World Bank data, (2020).
Azuh, D. E., Osabohien R., Orbih, M. & Godwin A. (2020). Public health expenditure and under-five mortality in Nigeria: An overview for policy intervention. Open Access Macedonian Journal of Medical Sciences, 8(E), 353-362.
BEA, (2015). Gross Domestic Product, 4th quarter and annual 2015 (third estimate). www.bea.gov>news>gross domestic- product-4th-quarter-and-annual-2015.
Becchetti, L., Conzo, p., & Salustri F. (2015). The wealth of Nations: the impact of health expenditure on the number of chronic diseases. Center for studies in econometrics and finance working paper 406f.
Boachie, M., K. & Ramu, K. (2015). Public health expenditure and health status in Ghana. Munich personal RePEc (MPRA) paper 66371.
Central Bank of Nigeria Statistical Bulletin, 2020.
Cloackbackward Essay (2009). Ordinary Least Squares Linear regression: Flaws, Problems and Pitfalls. https://lcn.people.uic.edu/classes/che205s17/docs/che205s17_reading_06c.pdf
Deluna, R & Peralta, T., F. (2014). Public Health expenditure, income and health outcome in the Philipines. Munich Personal RePEc. Archive (MRPA) paper 60115.
Erick (2021). Introduction to the Fundamentals of Vector Autoregressive Models. Aptech Data Analysis blog published 15th April.
Gujarati, D. N. (1995). Basic Economic. Singapore. New Delhi: McGraw Hill Companies Inc.
Gujarati, D. N (2009). Basic Econometrics.5th Edition. Singapore. New Delhi: McGraw-Hill Companies Inc.
http://www.worldmap.com/Nigeria
https://www.severemalaria.org/
Isaac, I., Sunday, S.O., & Adeleye, B.M. (2017). An empirical analysis of public health Expenditure on life expectancy: evidence from Nigeria. British Journal of Economics Management & Trade, 17(4), 1-17.
Johansen, S. and Juselius, K. (1990). Maximum Likelihood Estimation and Inference on Cointegration with Applications to Demands for Money. Oxford Bulletin of Economics and Statistics, 52, 169-210.
Kali M. and Griffin J (2018). Bayesian nonparametric vector autoregressive model. Journal of Econometrics, 203(2), 267-282.
Kim, K. K. and Lane, S. (2013). Government Health Expenditure and Public Health Outcome: A Comparative Study among 17 Countries and Implications for US Health Care Reform. American International Journal of Contemporary Research, 3(9). 8-13.
Kulkarni, L. (2016). Health inputs, health outcomes and public health expenditure: evidence from BRICS. International Journal of Applied Economics, 31(1), 72-84.
Kutu, A. A., & Ngalawa, H. (2016). Monetary policy shocks and industrial output in BRICS countries. SPOUDAI-Journal of Economics and Business, 66(3), 3-24.
National Center for Disease Control data base, 2022.
Obi, Z. C. & Obi, C. O. (2014). Impact of government expenditure on education: the Nigerian Experience. International Journal of Business and Finance Management Research, 2, 42-48.
Ogunjimi, J. & Adedeji, A. (2018). Health expenditure, health outcomes and economic growth in Nigeria. University of Ibadan, MPRA Paper no. 94989, 1-16.
Okeke, B., C, (2014). Impact of public health sector spending on health and education outcome in Nigeria (Unpublished Master’s thesis). Economics Department, University of Nigeria, Nsukka.
Oladosu, A. O., & Anaduaka, U. S. (2022). Effect of public health expenditure on health outcome in Nigeria and Ghana. Health Policy Open, 3, 100072. https://doi.org/10.1016/j.hpopen.2022.100072
Otu, A., Ameh, S., Egbe,O., Alade, E., Ekuri, S and Idris, J. (2017). An account of the Ebola virus disease outbreak in Nigeria: implications and lessons learnt. BMC Public Health, July 10, 18(1), 3. https://pubmed.ncbi.nlm.nih.gov/28693453/
Osawe, S., W. (2014). Determinant of Infant Mortality Rate: A Panel Data Analysis of African Countries. Developing country Studies, 4(18), 111-114.
Rotimi, M. E., & Ngalawa, H. (2017). Oil price shocks and economic performance in Africa’s oil exporting countries. Acta Universitatis Danubius Economica, 13(5). https://fulokoja.edu.ng/assets/publications/448_oil-price-shocks-and-economic-performance-in-africa%E2%80%99s-oil-exporting-countries.pdf
Salami, K., D., Olabode, O., S. Atoyebi, O. K, Lawal A., S., & Danmola R. (2017). Effects of Government health and education expenditures on economic growth in Nigeria. Journal International Journal of social & management sciences, Madonna university, 1(1), 118-130.
Sims, C. (1980). Econometrics and reality. Econometrica, 48(1), 1-48.
United Nations. (2004). Progress towards the Millennium Development Goals, 1990-2004. Discussion Paper. Statistics division, Department of Economic and Social Affairs of the United Nations Secretariat. http://unstats.un.org/unsd/mi/mi coverfinal.htm.
United Nations International Children’s Emergency Fund (UNICEF) 2017
Victoria, C.G., Vaughan, J. P., Barros, F. C., Silva, A.C., & Tomasi, E. (2000). Explaining trends in inequalities: evidence from Brazilian child health studies. The Lancet, 356(9235), 1093
World Malaria Report (2020).
World Health Organization (2021). WHO data base.
World Bank data (2019).
World Bank data, (2020).