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Impact of Remittances on Healthcare Development: Empirical Evidence from a Nigerian Data

. Victoria Hauwa Ibrahim, Divine Ndubuisi Obodoechi & Sumaila Adavani Joseph Obansa


Abstract

The study assessed the impact of remittances on healthcare development in Nigeria for the period 1990 to 2020. The specific objectives were to determine if foreign remittance, foreign direct investment and foreign direct aid have a major impact on government health expenditure in Nigeria. The data source for the objectives analysis was collected from the database of the Central Bank of Nigeria, the National Bureau of Statistics and the World Development Indicators, which were analyzed through multiple linear regression. The findings revealed that both foreign direct investment and foreign direct aid had a significant and positive impact on government health expenditure in Nigeria while foreign direct remittances had a negative and insignificant impact on government health expenditure in Nigeria. The study, therefore, suggests that the Nigerian government should formulate a health insurance scheme that would cut across the citizens irrespective of age, status, and gender; to reduce the health burden on foreign direct remittances. Only then can remittances outperform their complementary role in the economy. Also, the government should invest more in the healthcare sector to attract foreign investors; and at the same time create policies that would limit cash outflows in the form of profit repatriation from the Nigerian economy.

Keywords: Foreign Aid, Foreign Direct Investment, Foreign Direct Remittance, Health Development, Multiple Linear Regression, Nigeria.

JEL Classification: C22, F22, F24, H51, I15.

                 

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