The Impact Of Health Care Financing On Nigerian Economic Growth

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The Impact Of Health Care Financing On Nigerian Economic Growth


Investment in health is not only desirable, but also an essential priority for most societies, both in developed and developed economies. Despite the growing body of evidence on the benefits of health investment, it has remained low in most developing countries. The proportion of health expenditure to GDP has remained well below EU average of 9- 10% in many countries.(Atun and Gurol, 2005, [1] ). According to Scheffler (2004, [2] ), the old approach has always been to develop a country first, and then spend resources on health. Health spending is something you want to postpone, something not really necessary for development. The new approach is that, if you really want to successfully develop a country economically, you have to spend a fair amount of money on healthcare in the development process. This has emphasized the importance of investing in health of a nation particularly, Nigeria. Nigeria is faced with several health challenges and there is need to invest adequately in the health sector in order to improve the country‟s productivity. For instance, the HIV/AIDS prevalence rate was 3.6 in 2009, the maternal mortality is among the highest in the world with about 840 per 10,000. The under-five mortality is also high with about 143 per 1,000 in 2010 (UNICEF, 2010,[3] ).

One of the main factors responsible for the poor state of Nigeria‟s health system is financing. Many researchers have examined the effects government educational spending has on a country‟s growth and development especially in Nigeria, (Dauda2010, [4] ; Adawo, 2011, [5] ). However, human capital consists of two components; one is education and the other is health. It is surprising that health, which is another component of human capital, has been largely ignored in the growth studies and yet health is also a significant factor for long-run growth. In the past, much of the planning in Nigeria was centered on the accumulation of physical capital for rapid growth and development, without recognition of the important role played by human capital in the development process. There can be no significant economic growth in any country without adequate human capital development (Ogujiuba and Adeniyi 2005, [6] ).

In view of the above, this study hopes to bridge the gap in the literature by investigating the effect of government investment on health on economic growth in Nigeria, from 1977 to 2010. The study adopts the vector error correction model in order to find out both the short run and the long run relationship between health investment and economic growth in Nigeria. The study is presented as follows; relevant literature are reviewed in the next section, in the third section, models are specified and the fourth section is on the data and methodology, while in section five results are discussed and in the last section, conclusions are drawn.


Title Page


Approval Page




Table of content


Chapter 1


1:1 Introduction

1:2 Background of the Study

1:3 Statements of Problems

1:4 Objectives of the Study

1:5 Research Question

1:6 Study of the Hypothesis

1:7 Significance of the Study

1:8 Justification of the Study

1:9 Scope of the Study

1:10 Definition of Terms


Chapter 2

Literature Review

2:0 Introduction

2:1 Conceptual Clarification

2:2 Theoretical Framework

2:3 Literatures on the Subject Matter


Chapter 3

Research Methodology

3:0 Area of Study

3:1 Source of Data

3:2 Sampling Techniques

3:3 Method Data Collection

3:4 Method of Data Analysis

3:5 Reliability of Instrument

3:6 Validity of Instrument

3:7 Limitations of the Study


Chapter 4

Data Analysis

4:0 Introduction

4:1 Finding of the Study

4:2 Discussion of the Study

4:3 Summary


Chapter 5

Summary, Conclusion and Recommendation

5:0 Summary of Findings

5:1 Conclusion

5:2 Recommendations

5:3 Proposal for Further Studies


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