The Impact of Health Care on Industrial Productivity in Nigeria
CHAPTER ONE
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To examine the impact of government health care financing on workforce productivity in Nigeria
- To assess the direction of causality between workforce productivity and health care expenditure in Nigeria.
- To ascertain the relationship between health care and industrial productivity in Nigeria
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The literature relating health to labour market outcomes according to Campolieti and Krashinsky(2006), originates with Becker’s (1964) discussion of human capital and health capital , in which he argues that motivation for investment in general human capital, such as education is similar to the rational for investing in health capital. According to the authors, Grossman (1972) formalised this idea with a model in which health directly affects consumption and labour market outcome. Mankiw, Romer and Weil(1992) extended the Solow growth model by adding human capital, specifying that this variable has significant impact on economic growth. According to Galleg(2000), following a Ramsey scheme, Baro (1996) develops a growth model including physical capital and quantity of hours worked. The author noted that by obtaining first order conditions, Baro finds that increase in health indicators raises the incentives to invest in education and a raise health capital lowers the rate of depreciation of health; adding that there are diminishing marginal return to investment in health. Aguayo-Rico,Guera,Iris and Ricardo(2005) in their study noted that Grossman (1972) developed a model that allow health capital formation seen as capital good, to be able to work ,to earn money and to produce domestic goods. He showed that an increase in the quantity of health capital reduces the time loss of being sick. The model assumes people are born with initial endowment of health which depreciate with age and grow with investment in health (Aguayo-Rico et.al, 2005). In their study, Bloom and Canning (2000) described how healthy population tends to have higher productivity due to their greatest physical energy and mental clearness. Also Strauss and Thomas (1998) reviewed the empirical evidence of the relationship between health and productivity, establishing correlations between physical productivity and some health indicators especially those related to nutrition or specific disease. In health economics, the endogenous causality between health and income has been the topic of several studies whose purpose is to establish the direction of the causality. Luft(1978) gives an informal explanation of this causality, according to the author, a lot of people who otherwise wouldn’t be poor are, simply because they are sick; few people who otherwise would be healthy are sick because they are poor. In explanation of the direction of causality of the impact of health over income, Smith (1999) uses life cycle models which links health condition with future income, consumption and welfare. Bloom and Canning (2000) noted that healthy people live more and higher incentives to invest in their abilities since the present value of the human capital formation is higher.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of health care on industrial productivity in Nigeria
Sources of data collection
Data were collected from two main sources namely:
Primary source and Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain The impact of health care on industrial productivity in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of health care on industrial productivity in Nigeria
Summary
This study was on the impact of health care on industrial productivity in Nigeria. Three objectives were raised which included: To examine the impact of government health care financing on workforce productivity in Nigeria, to assess the direction of causality between workforce productivity and health care expenditure in Nigeria, to ascertain the relationship between health care and industrial productivity in Nigeria. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of ministry of labour and productivity. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made directors, administrative staff, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
This study examines the relationship between health outcome, labour productivity and industrial output in Nigeria with the aid of a simultaneous regression model. The study shows that health outcome significantly and positively impacts on labour productivity and labour productivity significantly impacts on industrial output as expected. Therefore health outcomes must be sustained to ensure labour productivity and labour productivity must be optimized to improve industrial output in Nigeria. Nevertheless, health outcome is not significantly influence by health expenditure due to the poor funding in the sector and population growth rate significantly and negatively affects it. This implies that governments at all levels pay attention to the proportion of health expenditure in their annual budgets.
Recommendation
The Federal Governments as well as the authorities in every states of the country must focus on the improvement of labour productivity if they wish to raise the standard of living of people in Nigeria. There is need for an increase in health and education expenditures at all levels of government in Nigeria in order to enhance development
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