Income Inequality Prevalence and Health Indicators: Implication For Economic Growth in Nigeria

• Adegbola, Omobolanle ^[1] ; Abiodun Lawal, Nurudeen ^[1] ; Oluwasegun Okikiola, Samuel ^[1]
  1. [1] University of Education

     University of Education

     Pakistán

     
• Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 42, Nº 3, 2024 (Ejemplar dedicado a: New challenges for economy policy: re-globalization vs de-globalization)
• Idioma: inglés
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  • This study explores the income inequality prevalence and health indicators implication for Nigeria economic growth between 1980 and 2022 using the Auto Regressive Distributive Lag Model. Time series secondary data on health indicators (life expectancy and infant mortality rate), Gini coefficient, economic growth and unemployment rate were sourced from the World Development Indicator Database. The Bounds test's F-statistics revealed that health indicators, income inequality, and unemployment rate have long-run relationship with economic growth in Nigeria. The ARDL estimation result shows that in the short run, income inequality and unemployment rate jointly affect economic growth while unemployment reduced national productivity in Nigeria. However, in the long run, there is a more encompassing effect of unemployment rate in the Nigerian economy. The results shows that the interactive role of unemployment and infant mortality in stimulating economic growth in Nigeria is evident, so when unemployment rate decrease, same as infant mortality, it automatically stimulates economic growth in Nigeria. Income inequality shows a negative relationship with economic growth which implies that it is a statistically significant variable that reduces the economic growth of Nigeria. This study therefore recommends that there should be proper plan, design, and implementation measures to reduce income inequality by targeting social and economic policies that promote equitable distribution of resources and opportunities. In addition, access to quality healthcare should be enhanced by increasing investment in healthcare infrastructure and expansion of health services in the nation. More importantly, creation of streams of income for the unemployed should be targeted, and policies to combat unemployment should be developed par time.