A Causal Assessment of Nigeria s Crude Oil Revenue, Health Expenditure, and Economic Growth

Olanike Bosede Awoyemi and Divine Amarachi Nwibe
Additional contact information
Olanike Bosede Awoyemi: Department of Economics, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Nigeria
Divine Amarachi Nwibe: Department of Economics, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Nigeria.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 5, 420-424

Abstract: Economic growth and health expenditure in Nigeria have become major priorities, and there is no doubt that health expenditure in Nigeria has risen over the years. According to studies, revenue and expenditure are important factors that contribute to a country's economic growth. Using pairwise granger causality, the study investigated the relationship between oil revenue, health expenditure, and economic growth. The variables of interest were oil revenue, health expenditures, real gross domestic product, consumer price index, and money supply. The annual time series data from 1980 to 2020 were obtained from the Central Bank of Nigeria (CBN) statistical bulletin, annual reports, and the World Bank Database. According to the findings, there is a bidirectional relationship between total health expenditure and real GDP. However, there is a unidirectional relationship between oil revenue and GDP. Furthermore, there is a unidirectional relationship between oil revenue and health expenditure. The study concluded that oil revenue and health expenditure granger cause Nigerian economic growth. Therefore, the government should make better use of oil revenue, close loopholes, and increase health spending. To increase productivity and economic growth, the government should increase public spending on health.

Keywords: Crude oil revenue; Health expenditure; Economic growth; Granger causality (search for similar items in EconPapers)
JEL-codes: I18 O47 Q34 Q47 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/13318/6946 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/13318 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2022-05-47

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().