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Dr. Sede I Peter and Mr. Ogiemudia Aigbedo Omorose
Volume 3 Issue 1 | Mar 2020
DOI: 10.31841/KJEMS.2021.40
Views: 606
Total Downloads: 7
This study empirically examines the effect of financial liberalization on health outcomes, taking on the case of infant mortality in Nigeria. The time series data adapted for the study spanned between 1980 and 2016. This was with a view to assessing the effects of monetary policies within this period on infant mortality. Diagnostic tests from the data show that all variables were integrated at order two [1(2)] as indicated by Augmented Dickey Fuller (ADF) unit root test statistics. The trace statistic shows two co-integrating equations. On the other hand, the maximum Eigen value shows one co-integrating equation. The Granger causality test shows that interest rate, as an instrument of financial liberalization, granger causes infant mortality rate. The VECM satisfied the a-priori expectation and was statistically significant at 5% level. It was found, among other things, that one period lag value of exchange and literacy rates, respectively, had non-significant positive effect on the current year value of infant mortality rate. Interest rate as a financial instrument is statistically significant at 5% level and correctly signed. Broad money supply and trade openness are also correctly signed but not statistically significant in their impact on infant mortality rate. Recommendation from the foregoing was that policy effort should be intensified on monetary policy instrument as they indicate desirable potentials to mitigating infant health in the economy. Keywords: Financial liberalization, Literacy, Infant Health and Granger causality