The Effect of Remittances and Health Expenditure on Economic Growth

The research investigates how remittances and public health expenditure affect economic growth in Nigeria by analyzing annual time-series data from 1992 to 2023. The study depends on Endogenous Growth Theory to investigate how internal factors, including remittance capital inflows and health expenditure investments in human capital, drive short- and long-term economic development. The research uses Autoregressive Distributed Lag (ARDL) modeling to analyze dynamic relationships among variables with different degrees of integration. The diagnostic tests validate the model while demonstrating its strong performance as a reliable testing tool. The results demonstrate that remittances have a positive long-term effect on economic growth by providing a consistent external funding for households and the economy. Government health expenditure has negative long-term economic effects because the sector suffers from both wasteful spending and operational flaws, yet it provides short-term benefits to the economy. Control of corruption as a governance proxy demonstrates short-term economic benefits through its positive relationship with growth, which shows the crucial role that institutional quality plays in converting financial investments into economic progress. The study recommends that sustainable economic growth can be achieved through a coordinated policy approach that combines remittance investment development with the efficient use of public health spending.