Abstract:
Health is one of the most important conditions of human life. People may borrow to cover health expenses if out of pocket payments do not correspond to the resources available to them, this will further worsen their poor welfare condition. Ill-health burden has been estimated to have pushed millions of people into poverty. Poverty in Nigeria is associated with the absence of health facilities and lack of sufficient nutrition which directly lead to ill-health. The impoverishment effect of health care cost is obvious in the literature. This paper provided an explicit empirical evidence of the causality between poverty and ill-health in Nigeria. Johansen Co-integration Technique and Granger Causality Test econometric methods were used to analyse the times series data for this study. Evidence of causality between poverty and health was established in the study. However, it confirmed the uni-directional causality from poverty to health. The economic implication of the results obtained is that poverty leads to ill-
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