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Financial Liberalization and Health ‎Outcomes in Nigeria: A Case of ‎Infant Mortality

Dr. Sede I Peter ‎ and Mr. Ogiemudia Aigbedo Omorose

Volume 3 Issue 1 | Mar 2020

DOI: 10.31841/KJEMS.2021.40

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Abstract

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