ABSTRACT
This research
work is an empirical effort attempting to examine the impact of healthcare
delivery on agricultural sector output using the ordinary least squares (OLS)
with annual secondary data from 1980 to 2016 sourced from Central Bank of
Nigeria Statistical Bulletin and Index Mundi Database. The co integration and
regression analysis of the variables were used to analyze the data.The result of this study shows the independent variables
(life expectancy and mortality rate) have significant impact on the
agricultural sector output in Nigeria which means that agricultural output is
dependent on healthcare. From this study the government are advised to grant
free medical care to large scale farmers to sustain their capacity in engaging
in the activities of the agricultural sector; they should also set up agencies
that will ensure accessibility of good health care.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Better
health care is a primary human need. According to the World Health Organization
(WHO, 2005), fifty percent of economic development differentials between
developed and developing nation is attributable to ill-health and low life
expectancy. Provision of health is seen as a key element of a policy to promote
broad-based national development. The burden of diseases such as HIV/AIDS is
known to slow the human productivity of developing countries. Therefore, every
country primarily aims to devote huge public fund to health sector so as to
empower its human capital. Hence, the
importance of health as a form of human capital cannot be over emphasized. Good
health and productive agriculture are important in the economy of any nation;
good health enhances work effectiveness and the productivity of an individual
through increase in physical and mental capabilities. Disease significantly
reduces the productivity of agricultural labor in developing countries due to
the loss of labor and know-how of productive adults (World Bank, 2008).
On
the basis of economic analysis, there appears to be an inextricable link
between health care and human labor productivity channeled to the agricultural
sector. Over the years in Nigeria, there have been some financial commitments
by the government in the area of health sector which is believed to also affect
human productivity exhumed in the agricultural sector. The financial
commitments of government to the health sector are both the recurrent and
capital expenditure on health. The capital expenditure of government decrease
from N7.3million in 1970 to N4.88 million in 1972 before it rose again to
N126.75 in 1974. It sharply dropped to N79.2 million in 1982. From 1982 to
1987, capital expenditure on health declined from N72.9m in 1982 to an all-time
low of N17.2m in 1987. This development is occasioned by the fact government
was more preoccupied in the business of paying workers’ salaries with less
attention being paid to capital expenditure. In 1988 there was a significant
rise to N297.96m. By 1991, the statistic dropped to N137.3m but plummeted to
N33.72m in 1992. The figure rose steadily from N586.2 million in 1993 to
N17,717.42m, N33,396.97m and N34,647.9m
in 2003, 2005 and 2007 respectively the capital expenditure on health
stood at N64,922.9m in 2008, N79,321.09m in 2011 and increased to N82.98m in
2015.
The
recurrent expenditure on health also follows a similar trend. It rose gradually
from N12.48 m in 1970 to N59.47m in 1977
but fell to N40.48m in the successive year. The pattern of health
expenditure at this period is a reflection of both the product of the
disposition of government policy towards health issue and the determination of
the Federal Government to improve the health care system with the wind fall of
oil revenue. From 1984 to 1986,
recurrent expenditure rose from N101.55m to N134.12m when the recurrent
expenditure as a percentage of total expenditure stood at 77.4 percent. The
value of recurrent health expenditure reduced significantly in 1987 to N41.31m
before it rose steadily from N422.80 in 1988 to N24,522.27m in 2001. This
figure rose again from N40,621.42 in 2002 to N44,551.63, N58,686.56 and
N72,290.07 in 2005, 2006 and 2007 respectively. Recurrent expenditure on health
stood at N18,200.0 million in 2008 and N21,542.9m in 2011, N179.99m in 2013 and
N257.72m in 2015.
On
the other hand, the agricultural output in Nigeria in 2011 totaled in monetary
value as N14,037.83m, and N15,816.00, N16,816.555m, N18.018.61 and N19,936.97m
in 2012 to 2015 respectively. Health problems apart from affecting the state of
welfare of affected households, affects agriculture and economic growth
negatively through the reduction of available labor hours for economic
activities, premature loss of human
resources and high cost of diseases treatment which adds to the economic burden
of the rural households. Research focusing on agriculture has revealed the
negative impact of ill health especially on the welfare of agricultural
household affects overall economic development. Against this background, this
study is aimed at carrying out an empirical analysis of the impact of
healthcare on agricultural output in Nigeria from 1980-2016.
1.2 Statement of the Problem
Many programs like the River Basin Development
Authorities, Green Revolution Scheme have been initiated by the government in
order to cut down the issue of food scarcity but to no avail. Agricultural
production decreases as a result of several factors such as disease, climate
change which invariably affects human health and thereby deepens poverty in
Nigeria. Majority (over 70%) of Nigerians depends on agriculture for their
means of livelihood and there has been a case of food insecurity which has led
to malnutrition and again affects human health. Poor health as a result of
ailment and diseases diminish economic opportunities for a large number of the
farming household that form majority in the study area and this in turn affects
the poor negatively who are stuck in the vicious cycle of poverty. In spite of
huge government spending, coupled with bilateral and multilateral assistance in
the health sector, the patterns of health status in Nigeria mirror many other
Sub-Saharan African nations but are worse than would be expected given
Nigeria’s GDP per capital. Poor human resources and policy management have led
to unprecedented brain drain in the health sector as health professionals in
search for better conditions of service abroad often vote with their feet in
droves.
The
Nigerian health system is in comatose; health care financing is worse hit
especially in the poor continent where health care faces serious problem.
Effects of ill health on farm households include three broad impacts:
absenteeism from work due to morbidity (and eventual death); diversion of
family b time to caring of the sick; and the loss of savings and assets in the
course of dealing with diseases and its consequences. Against these problems
listed above this research work tends to be an aid in proffering solutions.
1.3 Research
Questions
In
the course of this study, the following research questions will be addressed:
1.
To what extent has health care
affected the level of agricultural sector output in Nigeria?
2.
How has life expectancy influenced
agricultural sector output in Nigeria?
3.
What extent has infant mortality
affected agricultural sector output in Nigeria?
4.
What direction of causality exists
between health care delivery and agricultural sector output in Nigeria?
1.4 Objectives of the Study
The
broad objective of this study is to determine the impact of healthcare delivery
on agricultural output. In line with this, the specific objectives of the study
are:
1. To
evaluate the effect of life expectancy on agricultural sector output in
Nigeria.
2. To
analyze the impact of infant mortality on agricultural sector output in
Nigeria.
3. To
examine the causal relationship between healthcare delivery and agricultural
sector output.
1.5 Research Hypotheses
The
following hypotheses will be tested in the course of this study:
Ho: Healthcare delivery has no significant impact
on agricultural sector output in Nigeria.
H1: Healthcare delivery has
significant impact on agricultural sector output in Nigeria.
Ho:
Life expectancy has no significant impact on agricultural sector output in
Nigeria.
H1:
Life expectancy has significant impact on agricultural sector output in
Nigeria.
Ho:
Infant mortality has no significant impact on agricultural sector output in
Nigeria.
Hi: Infant mortality has significant impact on agricultural
sector output in Nigeria.
Ho:
There is no causal relationship between healthcare delivery and agricultural
sector output in Nigeria.
Hi:
There is a causal relationship between healthcare delivery and agricultural
sector output in Nigeria.
1.6
Significance
of the Study
This
research work apart from achieving its objective will be significance in the
following ways:
Firstly;the
federal government will find this study highly relevant as it will provide a
picture of the impact of health care budgetary allocation on agricultural
output in Nigeria. This research will also find its relevance in the coffers of
health and agricultural authorities given that the subject under study is
purely on health and agricultural matters.
Secondly;this
investigation will also be highly significant to subsequent researchers as this
research will provide them with relevant literatures on the concept of health
care and agricultural output.
Thirdly;this
research has the ingredient of expanding the knowledge of research students on
the concept of under study.
Finally,
this research is considered relevant given that it will be an addition to the
existing stock of knowledge and hence creates a capacity building input to the
education sector.
1.7
Scope
and Limitations of the Study
The
focus of this study is to carry out an empirical analysis on the impact of
health care on agricultural output in Nigeria covering the period 1980-2016.
The research while being conducted was threatened by some factors which posed
as limitations to the smoothness of the research. Out of all the factors, the
most significant ones are access to research material, statistical data and
financial constraints.
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Item Type: Project Material | Attribute: 50 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
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