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The Growth of Health Expenditure in Lesotho

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  • Ramashamole, Paseka B.
  • Thamae, Retselisitsoe I.

Abstract

The study analyses the factors behind the growth of health expenditure in Lesotho over the period 1980 to 2011. The cointegration test results reveal that income is one of the important factors explaining the growth of health spending in Lesotho, with public health expenditure being more responsive to changes in income than private health spending. Although the government’s role in disease patterns may be overshadowed by increased external funding, the findings highlight that Lesotho is still committed to improving the overall healthiness of its people. On the other hand, public and private health expenditure are found to follow different paths, with the ability of the citizens to finance their healthcare needs reducing the government’s pressure to offer more health services. External aid programmes also seem to have impacted positively on Lesotho’s public health spending while reducing a burden for privately-financed health services.

Suggested Citation

  • Ramashamole, Paseka B. & Thamae, Retselisitsoe I., 2015. "The Growth of Health Expenditure in Lesotho," African Journal of Economic Review, African Journal of Economic Review, vol. 3(2), July.
  • Handle: RePEc:ags:afjecr:264374
    DOI: 10.22004/ag.econ.264374
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    References listed on IDEAS

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    4. Retselisitsoe I. Thamae, 2013. "The Growth of Government Spending in Lesotho," Economic Analysis and Policy, Elsevier, vol. 43(3), pages 339-352, December.
    5. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    6. Facchini, François & Melki, Mickaël, 2013. "Efficient government size: France in the 20th century," European Journal of Political Economy, Elsevier, vol. 31(C), pages 1-14.
    7. François Facchini & Mickaël Melki, 2011. "Optimal Government Size and Economic Growth in France (1871-2008): An explanation by the State and Market Failures," Documents de travail du Centre d'Economie de la Sorbonne 11077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
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    Cited by:

    1. Byaro, Mwoya & Kinyondo, Abel & Michello, Charles & Musonda, Patrick, 2018. "Determinants of Public Health Expenditure Growth in Tanzania: An Application of Bayesian Model," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    2. Yoojin Lim & Youngwan Kim & Daniel Connolly, 2023. "Assessing the impact of aid on public health expenditure in aid recipient countries," Development Policy Review, Overseas Development Institute, vol. 41(1), January.

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