scholarly journals The Effects of Health Expenditure on Health Outcomes Based on the Classification of Public Health Expenditure: A Panel Data Approach

2019 ◽  
Vol 20 (12) ◽  
Author(s):  
Aziz Rezapour ◽  
Abdoreza Mousavi ◽  
Farhad Lotfi ◽  
Maryam Soleimani Movahed ◽  
Samira Alipour
Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 58 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
K. Ramu ◽  
Tatjana Põlajeva

The effect of government spending on population’s health has received attention over the past decades. This study re-examines the link between government health expenditures and health outcomes to establish whether government intervention in the health sector improves outcomes. The study uses annual data for the period 1980–2014 on Ghana. The ordinary least squares (OLS) and the two-stage least squares (2SLS) estimators are employed for analyses; the regression estimates are then used to conduct cost-effectiveness analysis. The results show that, aside from income, public health expenditure contributed to the improvements in health outcomes in Ghana for the period. We find that, overall, increasing public health expenditure by 10% averts 0.102–4.4 infant and under-five deaths in every 1000 live births while increasing life expectancy at birth by 0.77–47 days in a year. For each health outcome indicator, the effect of income dominates that of public spending. The cost per childhood mortality averted ranged from US$0.20 to US$16, whereas the cost per extra life year gained ranged from US$7 to US$593.33 (2005 US$) during the period. Although the health effect of income outweighs that of public health spending, high (and rising) income inequality makes government intervention necessary. In this respect, development policy should consider raising health sector investment inter alia to improve health conditions.


2017 ◽  
Vol 8 (2) ◽  
pp. 59 ◽  
Author(s):  
Lin Li ◽  
Maoguo Wu ◽  
Zhenyu Wu

Public health expenditure is an indispensable part of social economy. The public has always paid close attention to public health expenditure. In order to study the quantitative relation between public health expenditure and social economic development, this paper investigates prefecture-level cities in Shandong Province, due to the unique characteristics of Shandong Province. Making theoretical and empirical contributions, this paper augments the Cobb-Douglas production function with public health expenditure and empirically analyzes economic development of prefecture- level cities in Shandong Province. A panel data set is established, followed by multivariate regression analysis. Empirical results find that public health expenditure per capita and coverage of medical insurance can significantly promote social economic development. However, the expansion and growth of the number of health institutions does not necessarily promote economic development. Instead, it may even hold back economic development by causing personnel redundancy and waste of resources. If the government transfers its investment focus from the scale and the speed of development of medical services to their fairness and efficiency, public health expenditure may vastly improve both public health and economic development.


Author(s):  
Besuthu Hlafa ◽  
Kin Sibanda ◽  
Dumisani MacDonald Hompashe

Health holds an important position in maintaining economic development since it is both a prerequisite for and an outcome of economic development. This means that health contributes greatly to the attainment of sustainable development and health outcomes. The importance of health is demonstrated in the Millennium Development Goals (MDGs) where three of the eight goals are aimed at improving health outcomes. Despite progress made by other middle-income countries in achieving health-related MDGs, South Africa is still worse off in respect of health outcomes and experiences a challenge in attaining positive outcomes for these goals. This study’s main focus was to identify the association between public health expenditure and health outcomes in South Africa’s nine provinces from 2002 to 2016. The study implemented fixed effects and a random effects panel data estimation technique to control for time effects and individual provincial heterogeneity. This was followed by employing the Hausman specification test to identify the fixed effects model as the appropriate estimator for the study. The study also employed the seemingly unrelated regression (SUR) model and the least squares dummy variable (LSDV) model to examine the impact of public health expenditure on each province separately. The findings elucidated that the relationship between public health expenditure and health outcomes in South Africa varied across provinces depending on provincial management and infrastructure availability.


2019 ◽  
Vol 46 (9) ◽  
pp. 1137-1154
Author(s):  
Chamunorwa Nyamuranga ◽  
Jaeun Shin

Purpose The purpose of this paper is to empirically assess the effect of public health expenditure on child mortality in the Southern African Development Community (SADC) region in comparison to the developing world as a whole and the region of Sub-Saharan Africa (SSA). Design/methodology/approach This study used panel data extracted from the World Development Indicators database for the period 2000–2013 for 98 developing countries including 15 SADC countries. A dynamic panel data model of child mortality was estimated using the system generalized method of moments technique. Findings Results indicate that public health expenditure has a statistically significant effect on reducing infant and under-five mortality rates in the developing world, and that this effect is strongest in the SADC. Immunization and female literacy contributed significantly to the prevention of deaths of infants and children under five in developing countries. In the region of SSA, improved water sources and the reduction in the prevalence of HIV were found to be effective in reducing childhood mortality. There was little evidence for the benefit of higher GDP per capita. Practical implications The findings of this study suggest four policy areas which should be prioritized in public health spending to achieve better health among children: ensuring that females have better access to education, providing immunizations, intensifying interventions against the spread of HIV/AIDS, and improving water and sanitation infrastructure. Originality/value This study, which shows that the benefits of public health expenditure may be augmented by regional collaborations like the SADC, is one of the first to explore regional heterogeneity in the effectiveness of public health expenditure for the improvement of children’s health across the developing world.


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