Economic Performance and Life Expectancy in Nigeria
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2022-12
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Lead City University
Abstract
This study investigated the relationship between economic performance and average life expectancy (LEXP), male life expectancy (LEXPM), and female life expectancy (LEXPF) in Nigeria between 1981 and 2020. The economic performance indicators adopted for this research include income per capita, unemployment rate, inflation rate, external debt, foreign exchange rate, and government health expenditure. The relationship between economic performance indicators (EPIs) and life expectancy in Nigeria was studied based on neoclassical and endogenous growth theories. Data were analyzed using descriptive statistics, and the co-integration technique (ARDL Bound test). The response of life expectancy to shocks in EPIs was examined using impulse response function and variance
decomposition analysis, The short-run causal link between EPIs and life expectancy was examined using Granger causality based on TYDL procedure and VECM while the long-run causality was based on TYDL procedure and VAR. The test result revealed a co-integration of all the variables at the first difference I(1) except inflation rate I(0). The error correction term (ECT) implied that the short-run models of LEXP, LEXPM, LEXPF respectively adjusted their disequilibrium by 31.85%, 34.68%, and 29.0% speed of adjustment to return to the long-run equilibrium. The response of life expectancy to a Cholesky one standard deviation shock exerted on each EPI translated into a different form of reaction. A uni-causality was revealed in the short-run between the EPIs and life expectancy but in the long-run, there was feedback from life expectancy to external debt and inflation rate. The Government was advised to reduce external debts and cultivate the culture of using the borrowed funds for its cause. Also, the stability of EPIs should be prioritized, and a true development plan should be introduced at all levels of government for inclusive growth and long life expectancy in Nigeria.
Keywords: Economic performance indicators, Life expectancy, Relationship, Shocks, Causality, Nigeria
Word Count: 289
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Kate Turabian