Abstract
The major challenge facing policy makers is how to allocate limited resources across the range of preferences that contribute to poverty reduction and economic development; including capital expenditures on health, education, infrastructure and recurrent expenditures. The aim of this study is to establish the relationship between healthcare expenditure, the health status and national productivity in Nigeria. The motivation for this study is the relevance of the subject matter. Most of the studies in this area have treated the impact of government’s expenditure on health in Nigeria, without linking such expenditure appropriately to productivity. This study is situated in applied economics and the relevance of applied research cannot be overestimated. Since the public and private health care sectors are broad, we focused on the public healthcare expenditure from 1999-2012 for objective analysis. We reviewed several literatures and also used secondary data to run regression. We also used questionnaires to elicit responses. Public health care expenditure is considered as the explanatory variable for health status, productivity and poverty reduction. However, the causal relationship is weak in the Nigeria scenario. If people are a country’s principal asset, then their health status defines the course of development, and their health characteristics determine the nature and direction of sustainable human development. Nigeria needs investment in health research and innovation. We recommend a universal healthcare coverage; a system that everyone can access healthcare. More so, in an increase ngly globalized world, it is recognized that high levels of investment in research and innovation are essential, both for economic competitiveness, and to yield innovation in areas such as healthcare and environmental technologies. These make tangible improvements to quality of life. The challenges and prospect of the primary healthcare delivery for rural development need further study. Key words: Federal Government of Nigeria, productivity, health status, reproductive health, sustainable development, primary healthcare.
Highlights
Funding healthcare expenditure in Nigeria is from a variety of sources which include government, private sector, international donor agencies and NGOs
There are shown in Eqns 2, 3, 4a, 4b (Tables 5, 6, 7, 8). It means that health expenditure and health status explain about 53 and 46 percent changes in national productivity (RGDP)
More government expenditure, especially capital expenditures are needed in the Nigeria health sector
Summary
Funding healthcare expenditure in Nigeria is from a variety of sources which include government, private sector, international donor agencies and NGOs. A high unemployment rate, soaring prices and a more difficult economic situation for the majority of the poor population has severe consequences on the health status of Nigerians. The aim of this study is to establish the relationship between healthcare expenditure, the health status and national productivity in Nigeria. In November 2010, the United States launched its second round of quantitative easing monetary policy, implemented the bond purchase plan of $600 billion and retained short-term interest rates at almost a zero point rating All these lead to the depreciation of the dollar and a new round of commodity soaring prices, which gave the developing countries and emerging markets huge inflationary pressure. Non-oil exports are increasing in recent period of deepening democratization and economic reforms with little impact on the livelihoods and health status of the poor majority.
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