Good Governance, Public Health Expenditure and Economic Growth in Nigeria and South Africa

Abstract

The purpose of this study was to investigate the comparative effects of good governance and public health expenditure on the economic growth of Nigeria and South Africa, spanning 1996 to 2023. Secondary data were sourced from the Central Bank of Nigeria 2023 annual bulletin (CBN), World Development Indicators 2023 (WDI), and World Governance Indicators 2023 (WGI). The data underwent both pre- and post-estimation techniques to ascertain its reliability. The study employed a two-stage least square estimation technique to estimate the equation and pairwise Granger causality to check the spillover effect among both countries. At the end of the findings, the study discovered an inverse and statistically significant relationship between Corruption and actual gross domestic product in South Africa. Compared to the case of Nigeria, the findings indicate a positive and statistically significant relationship between Corruption and actual gross domestic product in Nigeria. However, public health expenditure positively correlated with actual gross domestic product in both South Africa and Nigeria. Furthermore, the findings show an inverse relationship between government effectiveness and real gross domestic product in South Africa compared to Nigeria; there is a positive relationship between government effectiveness and real gross domestic product. Based on the findings, the study recommended that the South African government create an environment that is less conducive to Corruption and more supportive of economic growth and development. It should also establish an independent and well-resourced anti-corruption agency to investigate and prosecute corruption cases. Also, the Nigerian government should increase its health sector budgetary allocation and ensure prudent and effective implementation to achieve long-term economic growth. Finally, Nigeria and South Africa's governments should implement transparent and accountable governance practices to build trust and confidence in government institutions.

Received: 18 July 2024 / Accepted: 27 August 2024 / Published: 7 September 2024