An Empirical Analysis of the Impact of Government Health Expenditures on the Performance of the Health Sector in Nigeria

Gwaison Panan Danladi

doi:10.36923/ijsser.v3i3.113

Abstract

Purpose of the Study: The purpose of the study is to examine whether government health expenditures have an impact on the health sector performance in Nigeria for the period (1979-2019). Methodology: The study employs the expo facto research design. The annual time series data were sourced from World Development Indicators (WDI) and the Statistical Bulletin of the Central Bank of Nigeria (CBN) for several years. The dynamic ordinary least square (DOLS) estimation method is employed to measure the coefficient of the parameters to test the four hypotheses developed. Main Findings: The findings of the study indicate that capital health expenditure and recurrent health expenditures are positively related to the performance of the health sector proxy by life expectancy rate but statistically insignificant. However, capital health expenditure is statistically significant to life expectancy. Research Implication: It was recommended that priority need to be placed on government capital spending on health such as building and equipping of health centres in every community to enhance accessibility to health centres in Nigeria. The novelty of the study: There is a need for an adequate mechanism to be put in place by the health sector to check the stealing of public funds and punish those who misuse and divert such funds. This can promote the generation and prudent utilization of revenue to equip our various health centres ahead of eventualities like the COVID-19.

Highlights

The health condition of the people is imperative to a nation’s well-being and sustainable economic growth
Main Findings: The findings of the study indicate that capital health expenditure and recurrent health expenditures are positively related to the performance of the health sector proxy by life expectancy rate but statistically insignificant
Olubokun (2011) their findings show that public expenditure has negatively but significant to a children death rate that is a rise in government allocation in the health sector can cause a fall in children death rate a positive but statistically insignificant impact between public health spending and the performance in the health sector, that is the general life expectancy

Summary

Introduction

The health condition of the people is imperative to a nation’s well-being and sustainable economic growth. Health is the general state of the mind and body and not just when there is the absence of sickness, injuries, or disability (Yusuf, 2016). When the health condition of an individual is bad it will be difficult to undertake any economic activity and if they try it there will be no efficiency in productivity health issues should be taken with seriousness (Crémieux, Ouellette, & Pilon, 1999). Public health expenditure level influences human capital development level generally which subsequently resulted in more, better productive, skilful, and efficient investment in other sectors like commerce, education, agriculture, and mining (Ghosh et al, 2007)

Objectives

Results

Discussion

Conclusion