International Journal of Social Science & Economic Research
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EWUBARE, Dennis Brown and AJISAFE, Femi Sammy

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EWUBARE, Dennis Brown & AJISAFE, Femi Sammy
Department of Agricultural and Applied Economics, Rivers State University, Port Harcourt.

Brown, EWUBARE, Dennis, and AJISAFE, Femi Sammy. "IMPACT OF GOVERNMENT EXPENDITURE ON HEALTH SECTOTR DEVELOPMENT IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 3, no. 11, Nov. 2018, pp. 6383-6398, Accessed Nov. 2018.
Brown, E., & Sammy, A. (2018, November). IMPACT OF GOVERNMENT EXPENDITURE ON HEALTH SECTOTR DEVELOPMENT IN NIGERIA. Int. j. of Social Science and Economic Research, 3(11), 6383-6398. Retrieved from
Brown, EWUBARE, Dennis, and AJISAFE, Femi Sammy. "IMPACT OF GOVERNMENT EXPENDITURE ON HEALTH SECTOTR DEVELOPMENT IN NIGERIA." Int. j. of Social Science and Economic Research 3, no. 11 (November 2018), 6383-6398. Accessed November, 2018.

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This research work examined the impact of Government expenditure on Health sector development in Nigeria from 1980 to 2017. The specific objectives were to: investigate the effects of capital and recurrent expenditures and per capita GDP on life expectancy in Nigeria. Data was generated from the World Bank World Development Indicators (WDI) and Central Bank of Nigeria Statistical Bulletin. The study conducted first and second order test. The study relied on the combinations of Ordinary Least Squares (OLS) and error correction mechanism (ECM) for estimating both long run and short run between the dependent and explanatory variables. The unit root test result shows that all the variables except life expectancy are stationary at first difference. Thus, life expectancy is found to be integrated of order zero [I(0)] while the other variables are integrated of order one [I(1)]. The cointegration test result shows evidence of two cointegrating vectors among the series. This indicates that the variables have long run relationship. The parsimonious ECM indicates that the lagged of life expectancy has significant positive effect on current level of life expectancy. This is an indication that the average number of years accruable to Nigerians is partly influenced by the previous life expectancy. The contemporaneous capital expenditure is found to exert significant positive effect on life expectancy. Again, the contemporaneous and lagged values of recurrent expenditure generated significant positive influence on life expectancy. This suggests that the effectiveness of overhead cost on life expectancy in Nigeria tend to manifest in the short run. Contrarily, the lagged values of per capita GDP seem not to significantly influence life expectancy in the short run, but its long term impact on life expectancy is positive and significant at 5 percent level therefor the study recommended that budgetary allocations to the health sector should be improved and optimally put into use.