Government Expenditure, Institutional Quality and Health Outcomes in Nigeria
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Date
2022-12
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Lead City University
Abstract
Deteriorating health outcome in the face of high public health expenditure and weak institutional
settings in Nigeria over the decades has prompted the need to work on the interrelationship
among public health expenditure, institutions and health outcomes (measured by life expectancy
and infant mortality) in Nigeria. The scope of the study covered a period of thirty seven years, 1984-2020. The objectives were formulated and evaluated using appropriate statistical methods
ranging from charts, descriptive statistics, unit root, and Autoregressive Distributed Lag
Estimator. The study found that government health expenditure negatively and significantly
influenced life expectancy in the short run. However, the positive impact of public health
spending on life expectancy in the long run is significant at 5% level. It shows that increasing
government health spending increases life expectancy. This direct relationship, however, emphasizes the importance of improving value for money in health-care systems. It includes a
greater emphasis on health promotion and other low-cost interventions, as well as a reduction in
ineffective spending and waste. Also, institutions negatively influenced life expectancy both in
short run and long run. It means that weak institutional settings do not have the impetus to
improve life expectance and curtail infant mortality. Finally, institutions do not have the impetus
to drive government health expenditure towards influencing health outcomes positively. Thus, the effectiveness of health and the way to reduce infant mortality or improve life quality is
conditioned by the status of good institutions. The study suggests the need for government to
increases its expenditure on healthcare services and facilities so as to improve the health of the
country’s population. Further, proper governance and institutional handling must be maintained
to ensure appropriate and efficient use of public sector health funds to improve health outcomes. Keywords: Public health spending, governance, life expectancy, infant mortality, Nigeria. Word Count: 288
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Kate Turabian