Health Expenditure, Institutional Quality and Health Outcomes in Nigeria

Abstract

The study investigated the interplay among government health expenditure, institutional quality, and health outcomes in Nigeria. The Autoregressive Distributed Lag (ARDL) model was used to analyse data from 1981 to 2021 for the assessment of how government recurrent expenditure affects life expectancy, maternal mortality rate, and infant mortality rate in both short and long run. Anchored in the health production function model, the findings demonstrated a significant positive impact of increased government health spending on long-term life expectancy, emphasizing the critical role of public investment in healthcare infrastructure. However, the study pointed out inconsistencies in the long-term effects of corruption on life expectancy. It also revealed a positive correlation between government health expenditure and health outcomes, especially infant mortality, while showing a long-term negative impact on maternal mortality. The study highlighted the complexity of health determinants in Nigeria, stressing the necessity for continuous healthcare investments and addressing corruption to optimize health expenditure outcomes. Also, efforts should also focus on improving access to maternal and child healthcare services, immunization programs, and skilled healthcare professionals to reduce infant mortality rates and improve life expectancy.