Impact of Health Indices on Economic Growth in Nigeria (2000 - 2023)

This study investigates the long-run and short-run effects of health indices on economic growth in Nigeria over the period 2000 to 2023. The study specifically examines the role of health expenditure, health outcomes (proxied by mortality rates), and life expectancy in influencing real gross domestic product (RGDP), which serves as a proxy for economic performance. Using the Vector Error Correction Model (VECM), the study establishes the existence of a long-run equilibrium relationship among the variables, as confirmed by the Johansen cointegration test. Empirical findings reveal that health expenditure has a positive and statistically significant long-run impact on economic growth, suggesting that investment in the health sector contributes to national output. Conversely, poor health outcomes exhibit a significant negative effect on economic growth, highlighting the economic cost of high mortality rates and substandard health conditions. Life expectancy, while positively signed, does not show a statistically significant relationship with economic growth in the long run. In the short-run dynamics, only health expenditure exhibits significant adjustment behavior toward restoring long-run equilibrium, while other variables show no meaningful short-term responsiveness. The study concludes that health sector development is crucial for sustainable economic growth, but the benefits of health spending depend on efficiency, accountability, and improvements in health outcomes. It recommends increased investment in healthcare infrastructure, targeted interventions to reduce mortality, and long-term strategies to improve both the quality and accessibility of health services. These measures are vital not only for improving population well-being but also for fostering economic resilience and growth in Nigeria.