Abstract
The determinant of health status has received an extensive attention in the literature for a large number of studies across the world. Empirical studies have explored the relationship between health expenditure and health status; however, the dynamic relationship amongst oil receipts, health expenditure and health quality is an empirical issue that has received little attention particularly in Nigeria. This study investigated the tripartite relationship among oil receipts, health expenditure on health status in Nigeria using pairwise granger causality test and autoregressive distributive lag approach (ARDL). The study shows that unidirectional causality runs from oil receipts to health expenditure and health quality. There is also bidirectional causality between health expenditure and health quality. The cointegration result revealed there is long run relationship among these variables. This study also found that oil revenue and health expenditure have negative and significant impact on child mortality rate but positive and significant effect on life expectancy. This finding obviously would facilitate the policies that will improve health sector in Nigeria. Keywords: Oil Receipts, Health Expenditure, Health Quality, Granger Causality, ARDL, Nigeria DOI: 10.7176/JRDM/67-06 Publication date: July 31 st 2020
Highlights
Oil is a major global energy source and the mainstay of the economy in oil exporting countries
The results show a positive relation between health outcome and the GDP per capita, adult literacy rate, and outof-pocket expenditure; environmental pollution has a negative relation with health outcomes; and age dependency ratio and public health expenditure show a positive elasticity with infant mortality rate
Bi-directional causal relationship was observed between health expenditure and maternal and infant mortality rate in Nigeria
Summary
Oil is a major global energy source and the mainstay of the economy in oil exporting countries. The. Nigeria’s economic policies and growth have been greatly influenced by oil sector for more than five decades. Since the global energy crisis of 1972/73, the petroleum subsector of the Nigerian economy has become the most important source of revenue and foreign exchange earnings. Nigerian petroleum sector as the engine of growth drives the entire Nigerian economy and society (Iwayemi, 2001). There is a disparity between oil receipts and health sector performance. Despite huge receipts from oil, Nigeria is still regarded as a poor country due to inability to adequately meet basic needs of life for a large part of its population including access to good health
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