EFFECTS OF PUBLIC AND HOUSEHOLD HEALTH EXPENDITURES ON ECONOMIC DEVELOPMENT IN NIGERIA
Abstract
The paper examines the relative effects of public and household health expenditures on economic development in Nigeria during the period from 1981-2021. In doing this, a composite economic development index based on Seers development theory is computed, and the effects of public and household health expenditure on economic development are investigated within a framework of simultaneous equation system estimated using the three stage least square (3SLS) estimator. The empirical evidence indicates that the effect of public expenditure in health on economic development in Nigeria is not statistically significant. However, household (out-of-pocket) represented by private expenditure in health is found to contribute significantly to economic development in the country. Further evidence are that economic development is enhanced by improvements in per capita income and life expectancy. These findings suggest the need to enhance incomes of household so as to improve and ease their access to healthcare services which will boost their health status and productivity, thereby enhancing their contributions to economic development.
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