The European Conference on Politics, Economics and Law 2015, Brighton,
United Kingdom
Official Conference Proceedings

The European Conference on Politics, Economics and Law 2015, Brighton,
United Kingdom
Official Conference Proceedings

The European Conference on Politics, Economics and Law 2015, Brighton,
United Kingdom
Official Conference Proceedings

This study estimates the impact of health on labour productivity in Nigeria from 1970
to 2012, applying the standard neo-classical growth framework. Using ordinary Least
Square (OLS) technique, Cointegration and Granger Causality test procedures, the
Unit root test result shows that five of the variables, PERCAPITA, LABFORCE,
EDUCATIO, AGRICULT and HEALTH are not stationary at level (order zero)except
INVEST, indicating no propensity for the variables to move together towards
equilibrium. The cointegration test procedures conducted indicates at most three
cointegrating equations. The causality test result conducted indicates a unilateral
causality from LABFORCE to PERCAPITA, PERCAPITA to HEALTH,
PERCAPITA to EDUCATIO and PERCAPITA to AGRICULT. The result table also
shows no direction of causality between PERCAPITA and INVEST. The OLS test
result shows that the empirical evidence strongly indicates that healthy labour force is
one factor that determines productivity. Statistically, the
2
R
result shows that the
independent variables explain the dependent variable to the tune of 90%. The t-value
of the variables, LABFORCE, EDUCATIO and AGRICULT are statistically
significant while others are not. The stability and residual diagnostic tests results
indicates that the CUSUM and CUSUMQ test results reveal satisfactory plot of the
recursive residuals at 95 percent significance level. The study therefore recommends
that the Federal Government as well as the authorities in every state of the country
must focus on the improvement of labour productivity in order to raise the standard of
living of the people in Nigeria

JEL CLASSIFICATION: C12, C51, J24.I12, N3, N37

Keywords: Health, Labour Productivity, Granger Causality, Cointegration, OLS,
Nigeria

Ephraim Ikechukwu Ugwu
Yakubu Suleiman