Abstract
This study investigates the effect of health investment on economic growth in Nigeria, from 1977 to 2010. Using the vector error correction model, the study finds that there is a long run relationship between health expenditure and economic growth. The results from the study also reveal a positive relationship between health expenditure and economic growth in Nigeria. However, the results from the vector error correction model showed that in the short run, the impact of health expenditure on the economic growth did not converge to the long run growth. Investment in health could boost economic growth, if government invests more in this aspect of human capital.
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