HEALTHCARE AND EDUCATION SPENDING: COMPLIMENTS OR SUBSTITUTES IN ECONOMIC GROWTH?

Abstract

This Study (1981-2020) Modeled The Human Capital-economic Growth Nexus Using Contemporary Data Evidence. In Pursuit Of Addressing A Pivotal Inquiry Regarding The Interplay Of Education And The Healthcare Sector In The Economic Growth Context Of Nigeria, The Study Employed A Set Of Variables Encompassing Real Gdp, Gross Capital Formation, Population Growth, Government Expenditure On Healthcare, Government Expenditure On Education, And Their Interaction. Thestudy Further Checked For Variable Stability Using The Augmented Dickeyfuller (adf) And Found That Only Capital Formation Remained Stable At Its Level. Cointegration Analysis From The Ardl Bounds Test Revealed That One Model Showed A Long-run Relationship While The Other Did Not. Though It Was Discovered That, In The Short Term, The Impact Contribution Of Both Health And Education Expenditure May Not Be Obvious, In The Long Run, They Make A Significant Contribution To Economic Growth. In The Long Term, Investment, Healthcare And Education Spending Significantly Contribute To Economic Growth. Itwas Found Out That Concurrent Investment In Healthcare And Education Is Vital, Aligning With The Importance Of Knowledge And Technology In Economic Growth Theory. Continuous Investment In
Both Areas Also Helps Offset The Impact Of Population Growth. This Supports The Idea That Educated, Healthy Individuals Contribute To Economic Growth, Echoing Prior Research Of Lustig (2006) And Schultz (2002). As A Result, Thisstudy Advocates For More Government Investment In Both Education And Healthcare.