Implications of Public Health Expenditure on Organizational Resilience: An Empirical Analysis

Abstract

This study investigates the macroeconomic determinants of organisational resilience in Nigeria, focusing on the transmission mechanism from public health expenditure to corporate-sector stability through the mediating role of employee well-being. Using annual time-series data from 1990 to 2024, the study employs the Autoregressive Distributed Lag (ARDL) bounds-testing approach and mediation analysis. The empirical results reveal a significant positive long-run relationship between public health expenditure and organisational resilience. Furthermore, the mediation analysis confirms that employee well-being partially mediates this relationship, accounting for approximately 42% of the total effect. The findings suggest that public health infrastructure is not merely a social-welfare cost but a critical macroeconomic investment that enhances human capital, preserves employee resources, and ultimately strengthens the corporate sector against economic shocks. The study concludes that organisational resilience in developing economies is fundamentally constrained by the quality of public health infrastructure and recommends increased budgetary allocation to the health sector and strategic public-private partnerships to enhance corporate sustainability.