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Health Expenditures, Institutional Quality and Economic Growth

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  • Syeda Anam Fatima Rizvi

    (CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

The study aims to determine the effect of health expenditures on economic growth while taking into account the quality of health institutions, keeping in view the fact that it's not just the level, rather quality of expenditures or institutions that matters. Our hypothesis was where institutions are better health investment in health brings more economic growth as compared to those with low quality institutions. To attain that objective the standard neo-classical Solow Growth Model at steady-state level was taken as theoretical framework and made a production function adding institutional quality proxied by government effectiveness along with other variables like health expenditure, primary education completion rate, population growth etc. For estimation purposes, data for the sample of 20 South, East Asian and Pacific developing countries was used for the period 1995-2017. It was found that if health expenditures adjusted for the quality of government expenditures increase by 100%, then the economic growth will increase by 5%.

Suggested Citation

  • Syeda Anam Fatima Rizvi, 2019. "Health Expenditures, Institutional Quality and Economic Growth," Post-Print hal-03341703, HAL.
    • Handle: RePEc:hal:journl:hal-03341703
    DOI: 10.29145/eer/21/020103
    Note: View the original document on HAL open archive server: https://hal.science/hal-03341703
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    References listed on IDEAS

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