Health Care Expenditure in Nigeria: Does the Level of Government Spending Really Matter?

16 Pages Posted: 24 Jan 2010

See all articles by Jude U. Bassey

Jude U. Bassey

Cross River University of Technology (CRUTECH)

Hodo Bassey Riman

University of Uyo (UNIUYO)

Bernard Enya Edu

Cross River University of Technology

Date Written: January 21, 2010

Abstract

The study seeks to examine the relation ship between levels of government health care expenditure and health status in Nigeria. The paper utilized several estimation techniques (Cobb–Douglas production function, Semi-logarithmic function, exponential and semi-logarithmic function) using data from 1980-2003. The result of the research reveal that life expectancy and literacy rate were negatively correlated with health care expenditure both in the short and long-run, income elasticity of health care expenditure was below low unity both in the short-run and long-run. The study concluded that health is a necessary good in Nigeria. In other to improve the health status of the population the Government needs to increase funding for health, reduce the inequality in the budgetary distribution of health expenditure and fast track the implementation of the Primary Health Care bill.

Keywords: Health Care Expenditure, Elasticity of Health Expenditure, Life expectancy Rate, Adult literacy rate

JEL Classification: D60

Suggested Citation

Bassey, Jude U. and Riman, Hodo Bassey and Edu, Bernard Enya, Health Care Expenditure in Nigeria: Does the Level of Government Spending Really Matter? (January 21, 2010). Available at SSRN: https://ssrn.com/abstract=1540279 or http://dx.doi.org/10.2139/ssrn.1540279

Jude U. Bassey

Cross River University of Technology (CRUTECH) ( email )

P.M.B 1123
Calabar,
Cross River State
Nigeria

Hodo Bassey Riman

University of Uyo (UNIUYO) ( email )

Ikpa Road
P.M.B. 1017
Uyo, Akwa Ibom State 1234
Nigeria

Bernard Enya Edu (Contact Author)

Cross River University of Technology ( email )

P.M.B 1123
Calabar,
Cross River State
Nigeria

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