The Macroeconomic Factors Driving The Need For Healthcare Demand In Nigeria

Abstract

Healthcare demand is influenced by various macroeconomic factors, and understanding these determinants is crucial for effective healthcare policy-making.

This study examines the impact of macroeconomic determinants on the demand for healthcare in Nigeria, focusing on vaccination and the study employs the autoregressive distributed lag (ARDL) method to analyze the short-term and long-term effects of macroeconomic variables on healthcare demand. The results show that GDP has a positive effect on vaccination in both the short term (β = 0.53, p < 0.05) and long term (β = 0.67, p < 0.01). Poverty index has a negative effect on vaccination, particularly in the short term (β = -0.21, p < 0.05). Inflation has a negligible positive effect on vaccination in both terms. Government health spending positively impacts immunization in both the short term (β = 0.31, p < 0.05) and long term (β = 0.45, p < 0.01).

The study concludes that macroeconomic determinants significantly influence healthcare demand in Nigeria. To improve healthcare outcomes, the government should prioritize increasing health spending, promote economic growth, and reduce poverty. A multi-faceted approach, including public-private partnerships and investments in the health sector, is recommended.