IMPACT OF HEALTHCARE FUNDING

It is near impossible, for any country to witness significant growth in its economy without a well-developed and dynamic industrial sector. The mainstay on industrial development aspects of government spending in modern structures of economic development derives from the fact that industrial sector is the vehicle or channel for sustained growth in the long run due to the fact that industrial sector brings about a structural transformation of the economy. The overall objective of this study is to examine the role of the industrial sector in the development of the Nigerian economy. The variables considered are the ratio of private sector credit to GDP, a proxy for financial growth, as the dependent variable while real GDP per capita, a proxy for
GDP, industrial output, a proxy for industrial growth and investment as the independent variables for the study. Augmented Dickey-fuller (ADF) test was used for the unit root test and the variables were found to be stationary at second difference. Then Johansen (1988) technique was used to establish if the stationary variables are co-integrated. Further, ECMis employed to correct any form of disequilibrium in the short run. The result of stationarity and normality test reveals that the model is fairly well specified and could be used for policy analysis. The analysis was based on data extracted from Central Bank of Nigeria (CBN) statistical bulletin and World Development
Indicators (WDI). The result of the analysis shows that all the variables were statistically significant at 5%. The results reveal that there is, overall, a positive relationship between financial growth and industrial growth. The study therefore suggest that the government should adopt policies capable of stimulating industrial activities which will ensure sustainable financial growth.