IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 2 202
DOI: https://doi.org/10.56201/jafm.v9.no2.2023.pg45.61

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Testing the Cointegrating Relationship between Foreign Exchange Rate Volatility and Government Health Expenditure

EFUNTADE, Olubunmi Omotayo, PhD, EFUNTADE, Alani Olusegun, FCIB, ACA.,

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Abstract

This paper examined the relationship between government health care expenditure and foreign exchange rate volatility in Nigeria for the period 1993-2022. We employed the multivariate cointegration technique proposed by Johansen and found the existence of at least one cointegrating vector describing a long run relationship between government health care expenditure and foreign exchange rate volatility. It is therefore suggested that an appreciable proportion of the national budget be allocated to the health care services to have a more robust health care programmes capable of fostering health development in Nigeria. The research was conducted with an objective to understand the dynamics between healthcare expenditures and the volatility in foreign exchange rate with a focus on Nigeria, enabling better policy making. The overall conclusion is that the Nigerian government health expenditure is largely dependent that its healthcare policy is not stable and sufficient is not largely dependent on volatility foreign exchange rate. However, government health expenditure is a concern for Nigeria.

keywords:

Foreign exchange rate volatility, government health expenditure

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References:

Alagidede, P., & Ibrahim, M. (2017). On the causes and effects of exchange rate volatility on
economic growth: Evidence from Ghana. Journal of African Business, 18(2), 169-193.

Anyanwu, F., Ananwude, A., & Okoye, N. (2017). Exchange rate policy and Nigeria's
economic growth: A granger causality impact assessment. International Journal of
Applied Economics, Finance and Accounting, 1(1), 1-13.

Ayadi, F. S. & Ayadi, F. O. (2008). The Impact of external debt on economic growth: A
comparative study of Nigeria and South Africa. Journal of Sustainable Development
in Africa, 10(3),234-264.

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