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Health Outcomes and Economic Growth Nexus: Testing for Long Run Relationship and Causal Links in Nigeria

Haruna Modibbo Usman, Mustapha Muktar and Nasiru Inuwa
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Haruna Modibbo Usman: Department of Economics, Gombe State University, Gombe, Nigeria
Mustapha Muktar: Department of Economics, Bayero University Kano, Nigeria

International Journal of Economics and Empirical Research (IJEER), 2015, vol. 3, issue 4, 176-183

Abstract: Purpose: This paper examined the long run relationship between health outcomes and economic growth in Nigeria from 1961 to 2012. Methodology: Using annual time series data, Augmented Dickey-Fuller (ADF) test is conducted to check the stochastic properties of the variables. Also, the long run relationship among the variables is confirmed based on Johansen Multivariate Cointegration approach whereas the long run and short run dynamics are observed using Vector Error Correction Mechanism (VECM). In addition, VEC Granger causality test is employed to examine the direction of causality among the variables. Findings: On the whole, the results obtained revealed the existence of a long run relationship between health outcomes and economic growth in Nigeria and that both life expectancy and crude death rate as measures of health are found to have a long run negative and statistically significant impact on the economic growth over the study period. This is further buttressed by the results of Granger causality test which indicated the existence of unidirectional causality running from life expectancy and crude death rate to economic growth. Recommendations: The study therefore, calls for governments at various levels to create preconditions for health improvements in Nigeria in order to boost the level of health outcomes.

Keywords: Economic growth; Health outcomes (search for similar items in EconPapers)
JEL-codes: F43 I1 (search for similar items in EconPapers)
Date: 2015
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