Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Public Health Expenditure, Government Effectiveness and Labour Productivity in West Africa

Ugeh, Richard Angioha, Udoh, Christiana Bassey, Ukut, NseAbasi Lewis, Umaru Musa

Abstract

This study empirically explored the impact of public health expenditure and government effectiveness on labour productivity in West Africa. Using data from 1980 to 2022 generated from World Bank (2023) which covered Nigeria and other West African countries including Benin, Burkina Faso, Cape Verde, Ivory Coast (Côte d'Ivoire), Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Senegal, Sierra Leone and Togo. The study employed both the Residual Based Test–The Engel-Granger Approach and the Johansen Multivariate Co-Integration Test as well as Error Correction Model (ECM) to establish the short-run dynamics of the regression model. The findings of this study showed that public health expenditure and government effectiveness had a positive but insignificant impact on labour productivity in the short run. However, it also revealed that public health expenditure has a long run significant adverse impact on labour productivity in Nigeria, Togo, Guinea, Senegal and Mali. It was concluded that the level of public health expenditure and government effectiveness are yet to create a positive and significant impact on the productivity of the work force in West African countries. The study therefore recommends that governments should reconsider the proportion of their annual budget set aside for public health expenditure so as to improve their effectiveness on labour productivity in West Africa.

Keywords

Public health expendituregovernment effectivenesslabour productivityhuman

References

Adeniyi, O. &Abiodun, N. (2021).Health expenditure and Nigerian economic growth.European Journal of Economics, Finance and Administrative Sciences. 2(4), 10-20. Akram, N. P., Khan, I. H.& Mohammad, L. S. (2018).The long term impact of health on economicgrowth in Pakistan.Journal of Business, Social Sciences and Development Economics, 4(7), 4-14. Bakare, A.S. &Olubokun S. Health Care Expenditure and Economic Growth in Nigeria: An Empirical Study.Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 2 (2) 83-87. Barro, R.J. (2016).Health and economic growth; Mimeo. Cambridge, MA: Harvard University Basta, S., Karyadi, S., & Scrimshaw, N. (2019). Iron deficiency anemia and productivity of adultmales in Indonesia. American Journal of Clinical Nutrition, 32, 916-925. Bloom, D. & Canning, D. (2018).Population Health and Economic Growth. World BankWorking Paper No: 24. Bloom, D. E, Canning D, Graham B. (2021).Health, Longevity, & Lifecycle Savings. CMHWorking Group Paper No; WG1: 9. Easterly, W. & Levine, R. E. (2021): Africa’s growth tragedy: policies and ethnic divisions.Quarterly Journal of Economics, 1(12) 1203-1250. Eatwell, J. M. & Newman, P. (2021). The New Palgrave: A Dictionary of Economics. 3(4 & 12, Macmillan, Tokyo. Edeme, R. K., Emecheta, C. &Omeje, M. O. (2017): Public health expenditure and healthoutcomes in Nigeria. American Journal of Biomedical and Life Sciences, 5(5), 96-102. Elliott, G. T., Rothenberg, J. & Stock, J. H. (2016). Efficient tests for an autoregressive unit root.Econometrica, 64, 813-836. Hamoudi, A. A., & Sachs, J. (2019). Economic consequences of health status: A review of theevidence. CID Working Papers Series No. 30. Howitt, P. (2015): Health, human capital and economic growth: A Schumpeterian perspective;Pan America Health Organization. Ifijeh, E. (2017). Health care expenditure and economic growth in Nigeria: An empiricalstudy.Journal of Emerging Trends in Economics and Management Sciences (JETEMS), 2 (2) 83-87. Maduka, S. A., Madichie, O. I., &Ekesiobi, U. S. (2016).Health care expenditure, health outcomes and economic growth Nexus in Nigeria.Unified Journal of Economics and International Finance, 2(1), 1-10. Mankiw, N. Romer, O. A. & Weil, D. N. (2022).A contribution to the empirics of economic growth.Quarterly Journal of Economic, 1(7), 407-437. Mizushima, A. (2018). Population aging and economic growth: The effect of health expenditure.European University Institute, ISSN: 1725-6704. Mohsen, M. &Maysam, M. (2021).Granger causality between Health and Economic Growth inoil exporting countries.Interdisciplinary Journal of Research in Business, 1(8), 103-108. Odior, E. S. (2021). Government expenditure on health, economic growth and long waves in aCGE micro-simulation analysis: The case of Nigeria. European Journal of Economic, Finance and Administrative Sciences, 31(1), 99-114. Odubunmi, A. S., Saka, J. O., &Oke, M. D. (2012).Testing the Cointegration relationship between health care expenditure and economic growth in Nigeria.International Journal of Economics and Finance. 4(11), 12-24. Olaoye, A. O. (1985). Total factor productivity trends in Nigeria manufacturing. Nigerian Journal of Economics and Social Studies, 27(3), 31 - 345. Olarinde, M. O, & Bello, A. A. (2014). Public healthcare expenditure and health sector performance in Nigeria: Implications for sustainable economic development. Journal of Economics and Finance, 4(3) 3-552. Ologun, E. D. (2013). A test of the neoclassical theory of economic growth using cointegrationand error-correction modeling: the Nigerian case; University of Benin. Oluwatobi, S. O. &Ogunrinola, I. O. (2021). Government Expenditure on Human Capital Development: Implications for Economic Growth in Nigeria.Journal of Sustainable Development, 4(3), 45-65. Oni, L. B. (2014).Analysis of the growth impact of health expenditure in Nigeria.Journal of Economics and Finance, 3(1), 77-84. Prokopenko, J. (2017). Productivity Management: A Practical Handbook, International LabourOrganization, Geneva. Rivera, B. &Currais, L. (2013). The Effect of Health Investment on Growth: A Causality Analysis. International Advances in Economic Research, 9 (4), 312-323. Romer, P. (2010).Endogenous Technical Change.Journal of Political Economy, 9 (8), 15-30. Scott, S. (2013). Much ado about productivity: Where do we go from here, industrialengineering.15 (10). Solow, R. M. (2016): A contribution to the theory of economic growth.Quarterly Journal of Economics, 70, 65-94. Strauss, J., & Thomas, D. (2021).Health, Nutrition and Economic Development.Journal of Economic Literature 36: 766-817. World Bank (2014, 2016): World Development Indicators; Washington, D. C. World Health Organization (1999). W.H.O on Health and Economic Productivity Populationand Development Review 25.2: 396-401. World Health Organization (2005): World Health Development Indicators. Washington, D. C. World Health Organization (2013).Statistical information system. World Health Organization,WHO: Geneva. World Health Organization (2015): World Health Organization (WHO) Global HealthObservatory data: Life expectancy. Geneva, Switzerland.

More Articles from JOURNAL OF BUSINESS AND AFRICAN ECONOMY

Monetary Policy Transmission Mechanism and Economic Growth in the West African Monetary Zone, 2000-2025

Author: i, Okolie, Romanus Onyeisi, ii, Emeter Patrick Okechukwu, iii, Aduba Paul Nnamdi, iv, Eneaniofu Daniel Mmaduakonam, v, Okwor Emmanuel Ejimnkonye

Inventory Management and Organisational Performance of Selected Manufacturing Firms in Southwest, Nigeria

Author: Akande, Folashade Adebisi, Ibojo, Bolanle O. PhD, Akinruwa, Temitope E. PhD

Monetary Policy and Performance of Deposit Money Banks in Nigeria

Author: Egbuho, Chika Anthonia, Njoku, Kevin Chinaka. Isukul, Araniyar. Chinedu.