HEALTH CARE EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL APPRAISAL OF THE NEXUS

2020 ◽  
Vol 12 (2) ◽  
pp. 69-86
Author(s):  
Alemu Kingsley Imandojemu ◽  
Desmond Uareime Imonikhe ◽  
Nathaniel Toyosi Akinlosotu ◽  
Aina Jamiu Babatunde
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Health Expenditure ◽  
Time Series Data ◽  
Labour Force ◽  
Health Care Expenditure ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
National Growth

A nation’s wealth is often described in terms of their physical stock of capital per time for the promotion of economic growth. One of such physical stock of capital is a healthy labour force. Therefore, this study investigated the relationship between health expenditure and economic growth in Nigeria from 1985 to 2019. To determine this, annual time series data was collected from various issues of the Central Bank of Nigeria (CBN) statistical bulletin and the World Development Indicator (WDI). Stationarity, long run relationship, equation estimation and causality were determined using the Augmented Dickey Fuller (ADF), Johansen-Cointegration, Parsimonious Error Correction Mechanism (ECM) and Pairwise Granger Causality test respectively. The result showed that a long run relationship exist among the variables while the ECM showed that in event of a disequilibrium, the system would restore itself to equilibrium at an adjustment speed of approximately 85.5percent. The result uncovered that current and past percentage of health expenditure in total expenditure (PHETE), government final consumption expenditure (GFCE), and labour force participation (LABF) all had direct impact on national growth (real GDP per capita) while current and past number of infant deaths (NUFD) had inverse relationship with national growth. Result further showed that there exists a unidirectional causality running from NUFD to RGDPPC; from GFCE to RGDPPC; from LABF to RGDPPC, from NUFD to PHETE, from LABF to PHETE, from NUFD to GFCE and from NUFD to LABF. It was recommended that the federal government through the Ministry of Health should endeavour to encourage private-public partnership in the building of quality health infrastructure such as hospitals with state of art facilities in localities where standard health care centres are not accessible to working citizens.

scholarly journals The Nexus between Export and Economic Growth in Tanzania

2019 ◽  
Vol 1 (2) ◽  
pp. p95
Author(s):  
Romanus L. Dimoso (PhD, Economics) ◽  
UTONGA, Dickson (MSc. Economics)
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Test Results ◽  
Causality Test ◽  
Goods And Services ◽  
Long Run ◽  
Causality Tests ◽  
The Government ◽  
Econometrics Analysis

This study explored the causal relationship between exports and economic growth in Tanzania. It analyzed time series data for the period of 1980 to 2015. Economic growth is measured in terms of growth per cent while exports are measured in percentage change of goods and services sold abroad. Econometrics analysis was employed in the due course. Such procedures as testing for the presence of unit root, co-integration and causality were done. Furthermore, the Johansen co-integration and Granger causality tests were employed to examine the long-run relationship among variables. The results of co-integration indicate the existence of one co-integrating equation. The causality test results exhibited causality which runs from economic growth to exports. The results conclude that, in the long run, there is a relationship between exports and economic growth in Tanzania. This study recommends the Government to make efforts to improve exports and eventually, in the long-run, rejuvenating the economy.

A Sectoral Analysis of the Role of Stock Market Development on Economic Growth: Empirical Evidence from Indian Economy

2017 ◽  
Vol 18 (4) ◽  
pp. 911-923 ◽  
Author(s):  
Madhu Sehrawat ◽  
A.K. Giri
Keyword(s):  
Economic Growth ◽  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Short Run

The present study examines the relationship between Indian stock market and economic growth from a sectoral perspective using quarterly time-series data from 2003:Q4 to 2014:Q4. The results of the autoregressive distributed lag (ARDL) approach bounds test confirm the existence of a cointegrating relationship between sector-specific gross domestic product (GDP) and sector-specific stock indices. The empirical results reveal that sector-specific economic growth are significantly influenced by changes in the respective sector-specific stock price indices in the long run as well as in the short run. Apart from that, the control variables, such as trade openness and inflation, act as the instrument variables in explaining the variations in the sector-specific GDP of the economy. The results of Granger causality test demonstrate unidirectional long-run as well as short-run causality running from sector specific stock prices to respective sector GDP. The findings suggest that economic growth of the country is sensitive to respective sub-sector stock market investments. The findings highlight the reasons for cyclical and counter-cyclical business phase for the overall economy.

scholarly journals Stock Market and Economic Development: a Causality Test

2007 ◽  
Vol 3 (1) ◽  
pp. 36-44 ◽  
Author(s):  
Surya Bahadur G.C. ◽  
Suman Neupane
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Stock Market ◽  
Time Series Data ◽  
Series Data ◽  
Causality Test ◽  
Stock Market Development ◽  
Business Studies ◽  
Long Run ◽  
Made In

ABSTRACT An attempt has been made in this paper to examine the existence of causality relationship between stock market and economic growth based on the time series data for the year 1988 to 2005 using Granger causality test. The study finds the empirical evidence of long-run integration and causality of macroeconomic variables and stock market indicators even in a small capital market of Nepal. The causality has been observed only in real terms but not in nominal variables. In econometric sense, it depicts that the stock market plays significant role in determining economic growth and vice versa. Interestingly, the causation is evident with a lag of 3 to 4 years. Also, the paper reveals the importance of stock market development for fostering economic development. Journal of Nepalese Business Studies 2006/III/1 pp. 36-44

scholarly journals Causal Linkage amongst Public Expenditure on Health, Health Status and Growth: New Empirical Evidence from Toda-Yamamoto Approach for Nigeria

2019 ◽  
pp. 1-13 ◽  
Author(s):  
Stanley Emife Nwani ◽  
Ikechukwu Kelikume
Keyword(s):  
Economic Growth ◽  
Health Status ◽  
National Health ◽  
Health Expenditure ◽  
Public Expenditure ◽  
Time Series Data ◽  
Health Sector ◽  
Series Data ◽  
Causality Test ◽  
Integration Test

This study investigates the causal linkages amongst public expenditure on health, health status and economic growth in Nigeria using the Toda-Yamamoto technique. The choice of the Toda-Yamamoto approach is predicated on its simplicity and the ability to overcome the shortcomings inherent in the conventional causality procedures by producing more robust results through the estimation of the augmented VAR that guarantees the asymptotic distribution of the Wald statistic. To this end, the study collected annual time series data from the Central Bank of Nigeria’s Statistical bulletin and the World Development Indicator on public expenditure on health, life expectancy, infant mortality and real gross domestic product spanning 38 years from 1981 to 2018. The result of the study’s empirical analysis based on the co-integration test indicates that public health expenditure, health status and economic growth have long-run association. Further, the Toda-Yamamoto causality test result reveals the absence of causality between health expenditure and health status. Similarly, health status and economic growth are not causally interdependent. On the basis of the findings, the paper vehemently concludes that efforts to stimulate economic growth by targeting health outcomes improvement through public expenditure will be futile. As such, there is the need to develop better national health policy and programmes such as compulsory national health insurance that is capable of resolving the fundamental problems in the health sector. This would help integrate healthcare into the mainstream of the Nigerian economy.

scholarly journals Impact of Economic Reforms, FDI and Imports on GDP: Trends and Regression Analysis

2018 ◽  
Vol 7 (3) ◽  
pp. 20-25
Author(s):  
Preeti Sharma ◽  
Priyanka Sahni
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Time Series Data ◽  
Economic Reforms ◽  
Chinese Economy ◽  
Series Data ◽  
Causality Analysis ◽  
Causality Test ◽  
Long Run ◽  
Integration Test

The aim of this study is to explore the causal relationship between the exports, imports and economic growth of Chinese economy using time series data running from 1978 to 2016.Co integration, Granger Causality analysis and Vector Error Correction Mechanism (VECM) has been used in order to test the hypotheses about the presence of causality and co integration among the variables. The co integration test confirmed that exports, imports and GDP are co integrated, indicating an existence of long run equilibrium relationship among the variables and also confirmed by the Johansen co integration test results. The Granger causality test finally confirmed the presence of bi-directional causality between exports, imports and GDP. The study further shows that relative share of china’s exports in world exports has increased significantly after the introduction of economic reforms. Further, the rising exports have also made a significant contribution to the economic growth of Chinese economy due to forward and backward linkages.

scholarly journals FOREIGN INVESTMENT INFLOWS AND THE STRUGGLE FOR A RENEWED ECONOMIC GROWTH IN NIGERIA: AN ECONOMETRIC STUDY

2019 ◽  
Vol 7 (8) ◽  
pp. 88-103
Author(s):  
Aderopo Raphael Adediyan ◽  
Emmanuel Ekomoezor
Keyword(s):  
Economic Growth ◽  
Foreign Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Labour Force ◽  
Trade Openness ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
Annual Time Series

This study attempts to find answer to the question of whether Nigeria should intensify effort to draw home more foreign investment; would more of foreign investment inflows accelerate Nigeria economic performance? Methodologically, annual time series data from 1986 to 2018 was analyzed using ARDL approach. The key findings are that, although FDI has long-run positive impact on economic growth, FPI has no operational effect on the growth; this is true of FPI both in the long-run and short-run. Furthermore, labour force and trade openness were found to have long-run and short-run positive impact on growth. Hence, government must tactically open up economy to trans-border trade, increase labour supply and intensify effort to attract more FDI.

scholarly journals Causality between Economic Growth and Health Expenditure: A time series analysis from 1996 till 2017 in Albania

2020 ◽  
Vol 16 ◽  
Keyword(s):  
Economic Growth ◽  
Health Care ◽  
Human Capital ◽  
Health Expenditure ◽  
Health Care Expenditure ◽  
World Health ◽  
Development Economic ◽  
Causality Test ◽  
Per Capita Gdp ◽  
Per Capita

-Evidence shows that human capital is a leading driver and one of the most important factors affecting economic development. Economic growth models emphasize the effect that human capital has on the growth and prosperity of a country. The indicators used to measure human capital vary. In this article we will use total health expenditure as a measure for human capital. A healthier population will obviously lead to increased productivity and consequently a higher income for the individual. By increasing public health investments, the workforce will potentially be healthier and consequently human productivity will increase. One of the most important lessons to be learned from the coronavirus pandemic is the importance of investments in health care services, human resources and technical infrastructure for the economy. The aim of this article is to study the relationship between Health Care Expenditure (HCE) per capita and Gross Domestic Product GDP per capita in Albania. The data (in $) is taken from the World Health Organization website, for the time period 1996-2017. The methods used are the ARDL Bounds testing approach for co-integration and the Granger causality test. The main results are: the variables per capita GDP and per capita HCE are not cointegrated. The ARDL(1,1) model estimation points out the positive relationship between the two variables. Also, our study confirms the existence of joint causality between per capita GDP and per capita HCE.

scholarly journals Impact of Exports and Imports on Economic Growth in Rwanda: 1961-2018

2020 ◽  
Author(s):  
Charles Ruranga ◽  
Daniel S. Ruturwa ◽  
Valens Rwema
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Series Data ◽  
Causality Test ◽  
Development Indicators ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run ◽  
Annual Time Series ◽  
The Impact

Abstract The aim of this paper is to investigate the impact of trade on economic growth in Rwanda. This paper uses exports and imports for trade and gross domestic product for economic growth. Research questions were formulated as (1) Are exports, imports and economic growth cointegrated? (2) Is there a long or short run relationship between those Variables? (3) Are there any causal relationships between factors (4) what the direction of the causality is it? Annual time series data from World Development Indicators for the period from 1961 to 2018 have been used. The methods of linear regression for estimation of Vector Auto regressions models have been used. Our findings established that VAR was appropriate model, and GDP, Exports were stationary at first differences while Imports was stationary at second difference but not at levels. Hence the two series were integrated of order one and the third one was integrated of order two. Tests of cointegration indicates that the three variables were not cointegrated, implying there was no long run equilibrium relationship between the three series. The causality test indicated that exports and imports influenced GDP. On the other hand, we found that there was a strong evidence of unidirectional causality from exports to economic growth. However, there was bidirectional causality between GDP and imports. These results provide evidence that exports and imports, thus, were seen as the source of economic growth in Rwanda.

scholarly journals An empirical analysis of the energy consumption – real GDP nexus for Zimbabwe

2013 ◽  
Vol 10 (3) ◽  
pp. 426-433
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Time Series Data ◽  
Scale Up ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Causality Relationship ◽  
Capital Development ◽  
Growth Hypothesis

This study looked into causality relationship between energy consumption and economic growth in Zimbabwe using time series data spanning from 1980 to 2011. Four views explaining the causality relationship between energy consumption and economic growth include the growth hypothesis, conservation hypothesis, feedback hypothesis and the neutrality hypothesis. Whilst the growth hypothesis argues that energy consumption promotes economic growth, conservation hypothesis says that it is in fact economic growth that drives energy consumption. The feedback hypothesis argues that both energy consumption and economic growth promote each other whilst according to the neutrality hypothesis, no causality relationship exist between the two variables either in the short or long run. Using the bi-variate causality test framework, this study failed to establish any direct causality relationship between energy consumption and economic growth. However, the results imply the existence of an indirect bi-directional causality relationship between the two variables. The study therefore recommends Zimbabwe authorities not only to scale up investment into energy generation capacity improvement infrastructure but also address indirect factors like employment, human capital development, financial market development, and government consumption, among others in order to boost sustainable economic growth.

scholarly journals Effect of Foreign Aids on Economic Growth in Nigeria

2020 ◽  
pp. 194-204
Author(s):  
Isiaka Najeem Ayodeji ◽  
Makinde Wasiu Abiodun
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Unit Root Test ◽  
Secondary Data ◽  
Least Square ◽  
Series Data ◽  
Causality Test ◽  
Long Run ◽  
Integration Test ◽  
The Impact

This study investigated the impact of foreign aids on economic growth in Nigeria using time series data spanned from 1990 to 2017. The research considered the secondary data that were gathered from CBN statistical bulletin 2017 and World Bank Data Indictors. Ordinary Least Square techniques was adopted in the study and used Augmented Dickey-Fuller Unit Root Test, co integration test, granger causality test, ECM to estimates data employed. The findings revealed that all the variables employed were stationary at first difference and integrated at the same order1(I), the co-integration test shows that variables are co-integrated at one co-integrating equation which means that there is a long run relationship. The Error Correction Model established that the error that caused disequilibrium in the short run is being corrected in the long-run at a speed of adjustment at 6%. The findings revealed real gross domestic product responds inversely to changes in official development assistance and foreign direct investment. Based on these findings the study concluded that foreign aids have a significant impact on economic growth in Nigeria. Different diagnostic tests are applied in order to confirm the major assumption of multiple regression analysis like multicollinearity, heteroskedasticity and autocorrelation. Therefore, the study recommends among others that government needs to formulate strong and effective education and healthcare policies to facilitate and attract investment in the sectors and improve their efficiency in the long-run that will influence productivity.

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