The interaction effect of health expenditure and institutional quality on maternal and child health in Nigeria between 1978 and 2023

Abstract

Poor budget allocation has been identified as one of the reasons for poor health outcomes in Nigeria. Recently, government expenditure on the health sector has increased across all tiers of government to enhance health service deliveries. However, the performance of health indicators suggests otherwise. This study examined the interactive effects of democracy and corruption, measured as institutional indicators, alongside government expenditure on health outcomes in Nigeria. The study employed a generalised method of moments to analyse data on health expenditure, maternal and child health, inflation, human capital, and gross domestic product between 1978 and 2023. The results showed that health expenditure and institutional quality complement each other in improving health outcomes rather than being substitutes. The study concluded that health expenditure and institutional quality were central to improving health outcomes in Nigeria.