Life expectancy describe quality of life lived right from birth till the time of death. Health economics literature indicated that life expectancy is affected by genetics, lifestyles, environment and socio-economic factors and that, socio-economic circumstances are strong predictors of life expectancy, as they are more evident in their health status. Empirical literature on the socio-economic determinants of life expectancy have focused on micro perspectives, involving partial equilibrium analysis, to the neglect of macroeconomic considerations, such as household income and lifestyle. This study, therefore, examined the macroeconomic determinants of life expectancy in Nigeria between 1980 and 2017.
The paper was predicated on the Grossman analytical framework ischolar_mained in the human capital development theory. A macroeconomic model incorporating major macroeconomic variables in explaining health outcomes was explored. The model examined the influence of literacy rate, government health expenditure, total number of health workers and per capita income on life expectancy. Ordinary least square estimation technique that took into consideration error correction mechanism was used. Tests of the model’s reliability were carried out using descriptive statistics, unit ischolar_main and co-integration tests. All estimates were validated at p≤ 0.05.
Government health expenditure, per capita income and literacy rate had positive significant effects on life expectancy. A 0.4% increase in literacy rate increased life expectancy by one year, while 0.3% and 2.6% increase in government health expenditure and per capita income, respectively, increased life expectancy by one year. The total number of health workers had a positive but insignificant relationship with life expectancy.
Socio-economic factors were critical to improving life expectancy as a health outcome in Nigeria. Therefore, government should strive towards increasing literacy rate and per capita income, as well as target its health expenditures towards improved life.