External Capital flows and Health Sector Development in Nigeria

Dennis Brown Ewubare; Esther Chimekwa Oriji

External Capital flows and Health Sector Development in Nigeria

Dennis Brown Ewubare & Esther Chimekwa Oriji

Abstract

The growing concern on the poor state of health facilities in Nigeria necessitated the investigation of how external capital flows helped in supporting healthcare development in the country. The specific objectives are to examine the effects of FDI, official development assistance (ODA), workers’ remittances, external debt servicing and domestic investment on investment in the health sector. The data for the variables were obtained from the CBN Statistical Bulletin and World Development Indicators, and analyzed using descriptive statistics, ADF unit root test, bounds cointegration test and ARDL method. The unit root test showed evidence of mixed integration in the variables and the bounds cointegration test showed long run relationship among the variables in each of the models. The result showed that FDI is positively related to health sector investment in Nigeria. This finding explains the important role external resources play in the process of health care development. At the same time, the results showed that ODA and workers’ remittances impacted positive on health sector investment. The implication of this finding is that increased inflows of migrants’ remittances support the efforts of the government in development the Nigeria’s health sector. The results further revealed that the short term impacts of domestic investment on healthcare expenditures are positive and significant. Given the findings, this study recommends among others that government should provide an enabling environment through improvement in the easy of doing business to ensure that Nigeria remains choice destination of FDI to create opportunities for the development of the health sector in Nigeria.

Keywords

External capitalhealth sectordevelopmentFDIODAworkers’ remittances

References

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External Capital flows and Health Sector Development in Nigeria

Abstract

Keywords

References

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