A Cointegration Analysis of Public Health Spending and Health Outcomes: Evidence from Nigeria

Uzoamaka Rita Iwuchukwu, Uju Ezenekwe () and Dr. Geraldine Nzeribe
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Uzoamaka Rita Iwuchukwu: Dept. of Economics, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
Dr. Geraldine Nzeribe: Dept. of Economics, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria

International Journal of Research and Innovation in Social Science, 2021, vol. 5, issue 4, 414-422

Abstract: This study examinedthe 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, Engel-Granger 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 the objectives of the study. The ARDL results show that there exist both long and short run relationship between the dependent and independent variables adopted in the study and across all the models specified in the study. Given the advantages of short run result over a long run result the study analysis relied on short run estimation. The results empirically obtained indicate that whereas PUHE, PVHE and FAH had positive impact of low magnitude, HEDU had positive impact of high magnitude on health outcomes in Nigeria. Given the empirical results, the study conclude that HEDU has more positive impact on newborns protected against tetanus, tuberculosis treatment success rate and prevention of measles via immunization in Nigeria, and thereafter recommend that more attention should be channeled to health orientation by educating the masses on benefits of health protection, prevention and promotion.

Date: 2021
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