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

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dc.contributor.authorDauda, Rasaki
dc.date.accessioned2022-03-29T14:04:48Z
dc.date.available2022-03-29T14:04:48Z
dc.date.issued2011
dc.description.abstractThis 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 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.en_US
dc.identifier.urihttp://dspace.run.edu.ng:8080/jspui/handle/123456789/2103
dc.language.isoenen_US
dc.publisherCanadian Social Scienceen_US
dc.subjectHuman capitalen_US
dc.subjectEconomic growthen_US
dc.subjectHealthen_US
dc.subjectLife expectancyen_US
dc.titleHealth as a Component of Human Capital Formation: Does it Matter for the Growth of the Nigerian Economy?en_US
dc.typeArticleen_US
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