ABSTRACT 

Health financing has enjoyed significant academic research visibility in recent years and experts judge that this will continue for many coming decades. Accordingly, this study investigated the impact of health financing on economic development of Nigeria and Ghana. The specific objectives were to; ascertain the effect of health financing on real gross domestic product of Nigeria and Ghana, examine the influence of education financing on real gross domestic product of Nigeria and Ghana, determine the impact of per capita health on real gross domestic product of Nigeria and Ghana, assess the effect of health financing on school enrolment of Nigeria and Ghana, assess the effect of health financing on life expectancy of Nigeria and Ghana. In order to achieve these objectives, the study adopted data covering the period of 1986 – 2018, and utilized Panel Data regression analysis as the data analysis method incorporating Unit root test, and co-integration. Health financing (HFIN), Education Financing (EFIN), and Per Capita Health (PCAH) were the independent variables, while Real Gross Domestic Product (RGDP), School Enrolment (SCHE), and Life Expectancy (LEXP) were the dependent variables. The result reveals that the independent variables have mixed relationship with RGDP in both countries. This is a pointer to the fact that an increase in the level of healthcare financing in Nigeria and Ghana will bring about a level of productivity in the nations when all strategic indices are well considered. The study concludes that the  mixed coefficients that exists among the health financing variable as it relates to economies of Nigeria and Ghana call for financial strategy adjustment in order to explore the potential growth virtues embedded in the health sector that are starved of fund, and therefore recommends that there is need for continuous financing into the health sector of the countries in order to achieve the desired significant effect necessary to boost economic productivity in the countries. Education financing from our study showed positive coefficient and significant effect. We advocate for increase in education financing as the variable sustained significance after incidental increment to 30 percent. Furthermore, the study advocate that health expenditure in the countries should consider the population size during implementation. Furthermore, the study advocate for the creation of a continuous literacy and research advancement by government in the nations that will enable smooth transfer of knowledge and promote innovations at various level of production in the countries. Finally, effective and efficient access to health care services, health infrastructure and enlightenment is advocated to address the issue of varying life expectancy in the countries.