A Generalized Method of Moments Approach of Examining the Impact of Public Expenditure on Health and Education Exert on Nigeria&rsquo;s Economic Growth&period;

Ekpete, S. Marshall, (PhD), Wachukwu, I. Princewill, (PhD) & Iyo, Ipeghan, (PhD)

A Generalized Method of Moments Approach of Examining the Impact of Public Expenditure on Health and Education Exert on Nigeria’s Economic Growth&period;

Ekpete, S. Marshall, (PhD), Wachukwu, I. Princewill, (PhD) & Iyo, Ipeghan, (PhD)

Abstract

This study investigates empirically the relationship between human capital (health and education) expenditure and economic growth in Nigeria using time series data from 1985- 2018. We employed the ADF Unit root test and the Generalized Method of Moments technique to account for persistence in the country over time. The estimation results show that the lagged value of Gross Domestic Product Per Capita appears to persist over time. While a positive relationship between Public Education Expenditure Per Capita (PEEPC) and GDP Per Capita was established. Unexpectedly, Public Health Expenditure Per Capita (PHEPC) had a negative relationship with the GDP Per Capita, despite the increased Public Health budgetary allocation in Nigeria. Evidently, the contribution of Health to the Gross Domestic Product is marginally low. Therefore, the study recommends that policymakers should sustain and strive to increase spending on education to meet up with the UNESCO budget recommendation of 26%. And also put in place an effective public financial management system that will reduce leakages and guarantee proper utilization of budgetary allocations on Health and Education

Keywords

Human Capital Public Health Expenditure Public Education Expenditure Economic Growth.

References

Akram N, I.U. HaqPadda & M. Khau (2008) The long term impact of health on endemic growth in Pakistan. The Pakistan development review, 487-500. Barro, R. J. (1991). Economic growth in a cross section of countries. Quarterly journal of Economics, 106(2, 407-443. Barro, R. J., & X. Sala-i-Martin (1995). Economic growth. New York: McGraw-Hall. Becker G. S., Murphy K. M. and Tamura R. (1990) Human capital, Fertility and economic growth.New York, McGraw Hill. Bloom, D. E., & Sevilla, J. (2004). The effect of health on economic growth: A production function approach, World Development, 32(1), 1-13. Bloom, D., & Canning, D. (2005). The health and poverty of nations: from theory to practice. Journal of Human Development, 4(1), 4771. Cass D. (1965) Optimum growth in an aggregative model of capital accumulation. Review of economic studies, volume 32(3). Ertekin, M. S. (2005). Public Spending on human capital in major industrialized countries. Dogus University Dergisi, 6(2): 220-236. Iyaiya, G., & Iyaiya, M. (2004). Financing human capital development and economic Growth in Nigeria: A perspective. Journal of the development of business administration. 4(1) Javed, M.,& Abbas, S. and Alvina, F. (2013). Impact of human capital development on economic growth of Pakistan: A Public Expenditure Approach. World science Journal. Javed M.; S. Abbas; F. Alvina; M.M. Azeem and S. Abbas; F. Alvina; M.M. Azeem and S. Zafar (2013) Impact of human capital development on economic growth of Pakistan: A public expenditure approach. Kesikoglu F., & Ozturk, Z. (2013). Relationship between human capital and economic growth: panel causality analysis for selected OECD countries. Journal of Economics and Social sciences. 3(1). Koopmans T. C. (1965) On the concept of optimal economic growth: The economic approach to development to development planning. Chicago, Rand McNally, page 225-287. Lucas, R. E. (1988). On the mechanics of economic development, Journal of monetary economics, 22, 3-42. Loaning J. L. (2005) Effects of primary, secondary and tertiary education on economic growth. World Bank policy research working paper No 3610. Ramsey F. P. (1928) A mathematical theory of savings. Economic journal 38(152) Romer, P. M. (1986). Increasing returns and long-run growth. Journal of political. 94(5), 1002-1037. Romer, P. M. (1990). Endogenous technological Change. Journal of Political Economic, 98(5) S71-S102. Sajid, A., Chaudhry, I. S., & Faroop, F. (2012). Human capital formation and economic growth in Pakistan. Pakistan Journal of Social Sciences, 32(1), 229-240. Sankey, O. J., Ismail, R., & Shaari, A. H. (2016). The impact of human capital development on the economic growth of Nigeria. Schutt, F. (2003).The importance of human capital for economic growth. Institute for World Economic and International Management (IWIM), University of Bremen. Solow, R. M. (1956). A contribution to the economic growth. National institute of Economics, 70(1), 69-94. Umaru, A. (2011) Human capital: Education and health in economic growth and development of the Nigerian economy. British journal of economics, Finance and management. Windmeijer, F. (2005), ‘‘A finite sample correction for the variance of linear efficient two- step GMM estimators,’’ Journal of econometrics, 126, 25-51.

A Generalized Method of Moments Approach of Examining the Impact of Public Expenditure on Health and Education Exert on Nigeria’s Economic Growth&period;

Abstract

Keywords

References

About IIARD +

Journals +

Editorial Board +

Author Guidelines +

Publication Ethics +

Policies +

More +

A Generalized Method of Moments Approach of Examining the Impact of Public Expenditure on Health and Education Exert on Nigeria&rsquo;s Economic Growth&period;

Abstract

Keywords

References

About IIARD +

Journals +

Editorial Board +

Author Guidelines +

Publication Ethics +

Policies +

More +

A Generalized Method of Moments Approach of Examining the Impact of Public Expenditure on Health and Education Exert on Nigeria’s Economic Growth&period;