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Health Outcomes and Economic Growth Nexus: Testing for Long Run Relationship and Causal Links in Nigeria

Author

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  • Haruna Modibbo Usman

    (Department of Economics, Gombe State University, Gombe, Nigeria)

  • Mustapha Muktar

    (Department of Economics, Bayero University Kano, Nigeria)

  • Nasiru Inuwa

    (Department of Economics, Gombe State University, Gombe, Nigeria)

Abstract

Purpose: This paper examined the long run relationship between health outcomes and economic growth in Nigeria from 1961 to 2012. Methodology: Using annual time series data, Augmented Dickey-Fuller (ADF) test is conducted to check the stochastic properties of the variables. Also, the long run relationship among the variables is confirmed based on Johansen Multivariate Cointegration approach whereas the long run and short run dynamics are observed using Vector Error Correction Mechanism (VECM). In addition, VEC Granger causality test is employed to examine the direction of causality among the variables. Findings: On the whole, the results obtained revealed the existence of a long run relationship between health outcomes and economic growth in Nigeria and that both life expectancy and crude death rate as measures of health are found to have a long run negative and statistically significant impact on the economic growth over the study period. This is further buttressed by the results of Granger causality test which indicated the existence of unidirectional causality running from life expectancy and crude death rate to economic growth. Recommendations: The study therefore, calls for governments at various levels to create preconditions for health improvements in Nigeria in order to boost the level of health outcomes.

Suggested Citation

  • Haruna Modibbo Usman & Mustapha Muktar & Nasiru Inuwa, 2015. "Health Outcomes and Economic Growth Nexus: Testing for Long Run Relationship and Causal Links in Nigeria," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 176-183, April.
    • Handle: RePEc:ijr:journl:v:3:y:2015:i:4:p:179-183
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    References listed on IDEAS

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    4. Rui Huang & Lilyan E. Fulginiti & E. Wesley F. Peterson, 2010. "Health and growth: causality through education," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 321-344, September.
    5. David E. Bloom & David Canning & Jaypee Sevilla, 2001. "The Effect of Health on Economic Growth: Theory and Evidence," NBER Working Papers 8587, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. Juste Som¨¦ & Selsah Pasali & Martin Kaboine, 2019. "Exploring the Impact of Healthcare on Economic Growth in Africa," Applied Economics and Finance, Redfame publishing, vol. 6(3), pages 45-57, May.
    3. Essosinam Franck Karabou & Komlan Ametowoyo Adeve & Kossi Atsutsè Dziédzom Tsomdzo, 2021. "Dépenses publiques de santé, état de santé et croissance en Afrique Subsaharienne: Cas de l'Afrique de l'Est et de l'Ouest," African Development Review, African Development Bank, vol. 33(2), pages 397-407, June.
    4. Fredrick Nsambu Kijjambu & Benjamin Musiita & Asaph Kaburura Katarangi, 2024. "Human Capital Development and Unemployment in Uganda: The Keynesian Theory of Unemployment in Perspective," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 94-108.

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    More about this item

    Keywords

    Economic growth; Health outcomes;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • I1 - Health, Education, and Welfare - - Health

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