Impact of Health and Agriculture Financing on Economic Growth in Nigeria

Rasaki Olufemi KAREEM, Olawale LATEEF, Muideen Adejare ISIAKA, Kamilu RAHEEM, Hassan Yusuf AVOVOME

Abstract


The study focused on the impact of health and agriculture financing on economic growth   in Nigeria from 1981 to 2019. The study utilized the time series data which was extracted from Central Bank of Nigeria annual statistical bulletin. Unit Root test was performed with the use of Augmented Dickey-Fuller test in order to ascertain the stationarity of all the variables and they were all found to be stationary at order 1 in the two specified models (composite and disaggregated). Error Correction Model (ECM) was used to analyze the data in order to determine the speed of adjustment from the short run to the long run equilibrium state.  Casualty test was used to confirm causal relationship among the variables of interests. The study revealed that Federal Government expenditure in Health sector has a significant effect on economic growth in Nigeria.  Federal Government expenditure in Agricultural sector equally had a positive effect on economic growth but surprisingly not significant.  Considering the disaggregated form, Federal Government capital expenditure in both Health and Agricultural sectors have positive and statistically significant effect on economic growth while Federal Government recurrent expenditure on health has a positive and statistically insignificant effect in economic. It was also revealed that there is causal relationship among the variables. Based on the findings, the study concluded that Federal Government Expenditure in Health Sectors and Agriculture Sectors have effect on economic growth in Nigeria.


Keywords


Federal government financing, Health and Agricultural sectors, Error correction model, Economic growth

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