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A Causal Assessment of Nigeria s Crude Oil Revenue, Health Expenditure, and Economic Growth

Author

Listed:
  • Olanike Bosede Awoyemi

    (Department of Economics, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Nigeria)

  • Divine Amarachi Nwibe

    (Department of Economics, College of Social and Management Sciences, Afe Babalola University, Ado-Ekiti, Nigeria.)

Abstract

Economic growth and health expenditure in Nigeria have become major priorities, and there is no doubt that health expenditure in Nigeria has risen over the years. According to studies, revenue and expenditure are important factors that contribute to a country's economic growth. Using pairwise granger causality, the study investigated the relationship between oil revenue, health expenditure, and economic growth. The variables of interest were oil revenue, health expenditures, real gross domestic product, consumer price index, and money supply. The annual time series data from 1980 to 2020 were obtained from the Central Bank of Nigeria (CBN) statistical bulletin, annual reports, and the World Bank Database. According to the findings, there is a bidirectional relationship between total health expenditure and real GDP. However, there is a unidirectional relationship between oil revenue and GDP. Furthermore, there is a unidirectional relationship between oil revenue and health expenditure. The study concluded that oil revenue and health expenditure granger cause Nigerian economic growth. Therefore, the government should make better use of oil revenue, close loopholes, and increase health spending. To increase productivity and economic growth, the government should increase public spending on health.

Suggested Citation

  • Olanike Bosede Awoyemi & Divine Amarachi Nwibe, 2022. "A Causal Assessment of Nigeria s Crude Oil Revenue, Health Expenditure, and Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 420-424, September.
    • Handle: RePEc:eco:journ2:2022-05-47
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    References listed on IDEAS

    as
    1. Ampah Isaac Kwesi & Kotosz Balázs, 2016. "Wagner versus Keynes: the causal nexus between Government Expenditures and Economic Growth: An Empirical study of Burkina Faso," Journal of Heterodox Economics, Sciendo, vol. 3(2), pages 74-101, December.
    2. Alarudeen Aminu & Isiaka Akande Raifu, 2019. "Dynamic Nexus between Oil Revenues and Economic Growth in Nigeria," Economics Bulletin, AccessEcon, vol. 39(2), pages 1556-1570.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Crude oil revenue; Health expenditure; Economic growth; Granger causality;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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