AN EMPIRICAL ANALYSIS OF THE NEXUS OF HEALTH CARE EXPENDITURES, EDUCATION EXPENDITURES, AND ECONOMIC GROWTH IN NIGERIA

Abstract

This study investigated the nexus between economic growth, health and education expenditure in Nigeria, using time series data for the period of 28 years (1990-2018). The study adopted the use of the Philips-Pheron test for unit root, ARDL bound test procedure to co-integration, and OLS method to estimate the relationship of the parameters used in the study. The findings revealed that all variables are stationary at first level I(1), there is a long-run relationship between economic growth, health, and education expenditure, and both education and health expenditures are good determinants of growth as revealed by the regression result. The study concluded that recurrent expenditures on health and education are required for economic growth and development, which thus affects the standard of living and life expectancy which goes a long way in contributing to aggregate output. Therefore, the study calls for the urgent need for policymakers to ensure budgetary allocations on education and health are given preeminence. KEYWORDS: Economic growth, health and education expenditure, Cointegration.