Health as a Component of Human Capital Formation: Does it Matter for the Growth of the Nigerian Economy?

Rasaki Stephen Dauda

Abstract


This paper tries to examine whether health as a component of human capital matters for the growth of the Nigerian economy. The study employs annual time series data from 1970 to 2009. The unit root test result indicates that all the variables except one were stationary at first difference, which also implies a I(1) while the result of the cointegration analysis reveals six cointegrating equations. Accordingly, the study employs the error correction mechanism which helps to determine the short run dynamics of the cointegrated variables towards their equilibrium. The results of the study show that health expenditure is positive and statistically significant but the coefficients of the second and third lags are negative and statistically significant. Infant mortality is significant and has negative coefficient. Life expectancy is positive and statistically significant at the first difference and difference of the second lag. The control variables such as gross fixed capital formation, education expenditure and labour force were all significant. The ECM variable is negative, less than one in absolute term and statistically significant with the coefficient of 40%, implying that the speed of adjustment or convergence to equilibrium is 40%. The model demonstrates a good fit. This is evident from the adjusted R2 of 97%, showing that the explanatory power of the model is strong with the independent variables explaining 97 percent of variation in gross domestic product. The Durbin-Watson statistic of 3.15 falls within the acceptable range of no autocorrelation. The main conclusion from the study is that health as a component 1 of human capital formation matters for the growth of the Nigerian economy. The policy implication of the study is that the Nigerian government should in addition to increasing expenditure on health put in place mechanism to monitor how effectively such funds are utilized for the purposes for which they are meant. All efforts as a matter of fact should also be geared towards combating the menace of communicable diseases such as HIV/ AIDS, malaria and tuberculosis in order to improve the health status of the population, reduce infant mortality and improve life expectancy.
Key words: Human capital; Economic growth; Health; Life expectancy


Résumé: Cet article tente d'examiner si la santé est une composante comme le capital humain pour la croissance de l'économie nigérienne. L'étude emploie des données annuelles sur des séries chronologiques de 1970 à 2009. Le résultat du test de racine unitaire indique que toutes les variables sauf une étaient stationnaires au premier abord différence, ce qui implique également un I (1) tandis que le résultat de l'analyse de cointégration révèle six équations de cointégration. En conséquence, l'étude utilise le mécanisme de correction d'erreur qui aide à déterminer la dynamique à court terme des variables cointégrées vers leur équilibre. Les résultats des l'étude montrent que les dépenses de santé est positif et statistiquement significatif, mais les coefficients des décalages deuxième et troisième sont négatifs et statistiquement significatifs. mortalité infantile est importante et a coefficient négatif. espérance de vie est positif et statistiquement significatif à la première différence et la différence des lag secondes. Les variables de contrôle telles que la formation brute de capital fixe, les dépenses d'éducation et de la population active étaient tous significatifs. La variable ECM est négatif, moins d'un terme absolu et statistiquement significative avec le coefficient de 40%, ce qui implique que la vitesse d'ajustement ou de convergence vers l'équilibre est de 40%. Le modèle montre un bon ajustement. Ceci est évident à partir du R2 ajusté de 97%, montrant que le pouvoir explicatif du modèle est forte avec les variables indépendantes expliquent 97 pour cent de la variation du produit intérieur brut. La statistique de Durbin-Watson de 3,15 se situe dans la fourchette acceptable d'absence d'autocorrélation. La principale conclusion de l'étude est que la santé comme une composante de la formation du capital humain des questions pour la croissance de l'économie nigériane. L'implication politique de l'étude est que la gouvernement nigérian devrait, en plus d'augmenter les dépenses de santé mis en place un mécanisme pour surveiller l'efficacité de tels fonds sont utilisés aux fins pour lesquelles ils sont destinés. Tous les efforts comme une question de fait doivent également être orientées vers la lutte contre la menace de maladies transmissibles telles que le VIH / sida, le paludisme et la tuberculose afin d'améliorer l'état de santé de la population, réduire la mortalité infantile et améliorer l'espérance de vie.
Mots-clés: Capital humain; Croissance économique; Santé; Espérance de vie


Keywords


Human capital; Economic growth; Health; Life expectancy;Capital humain; Croissance économique; Santé; Espérance de vie;Canadian;Social Science

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DOI: http://dx.doi.org/10.3968%2Fj.css.1923669720110704.185

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