Government Expenditure on Health, Economic Growth and Long Waves in A CGE Micro-Simulation Analysis: The Case of Nigeria
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Date
2011
Authors
Odior, E.S.O.
Journal Title
Journal ISSN
Volume Title
Publisher
European Journal of Economics, Finance and Administrative Sciences
Abstract
This paper analyses the dynamic direct and indirect effects of government policy on health
and its relation to the cyclical economic growth in the long run. The main objective is to
simulate if government expenditure on health would help to improve economic
performance in Nigeria in long run. The paper provided a brief structure of government
expenditure on health in Nigeria, growth profile for Nigeria and a brief review of
theoretical literature, as well as new empirical evidence on the relationship between
government expenditure on health and growth. The paper used an integrated sequential
dynamic computable general equilibrium (CGE) model to examine the potential impact of
increase in government expenditure on health in Nigeria. The model is calibrated with a
2004 social accounting matrix (SAM) data of the Nigerian economy. The result shows that
the re-allocation of government expenditure to health sector is significant in explaining
economic growth in Nigeria. This paper therefore recommends that in order to achieve a
steady economic growth, investment in health services should also receive great attention
in the public investment portfolio. The policy implication of the paper is that, the Nigerian
government should be able to move resources from other sectors to provide quality health
for her citizens.
Description
Keywords
Public Expenditure , Health , Economic Growth , CGE
Citation
Odior, E.S. (2011), “Government Expenditure on Health, Economic Growth and Long Waves in A CGE Micro-Simulation Analysis: The Case of Nigeria”, European Journal of Economics, Finance and Administrative Sciences (EJEFAS), Issue 31. London, United Kingdom, Pp, 99 – 113