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Health Care Expenditure And Gdp: An African Perspective

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  • JAUNKY, V.C

    ()

  • KHADAROO, A.J.

    ()

Abstract

This paper sheds light on the income elasticity of health care expenditure in Africa. The existing literature has to date focused on developed countries due to scarcity of health expenditure data in developing countries. We herein exploit panel data techniques, combining time-series and cross-section data, which enable a substantial increase in testing power. Income elasticity of health care expenditure for 28 African countries over the decade 1991 – 2000 is investigated. In addition to aggregate health expenditure, we model public and private health expenditures separately. In both the short-run and long-run, public health expenditure is found to be a luxury while private health expenditure a necessity. This is not too surprising in the context of Africa, where the public sector has to strive hard to provide basic health care to the poor majority but where a rich minority can easily afford hi-tech private health care. Furthermore the income elasticity of public health expenditure is found to be pro-cyclical while that of private health expenditure is counter-cyclical, thereby reinforcing our previous finding.

Suggested Citation

  • Jaunky, V.C & Khadaroo, A.J., 2008. "Health Care Expenditure And Gdp: An African Perspective," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 131-146.
  • Handle: RePEc:eaa:aeinde:v:8:y:2008:i:1_11
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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 70(1), pages 65-94.
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    Cited by:

    1. Seher Sülkü & Asena Caner, 2011. "Health care expenditures and gross domestic product: the Turkish case," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 12(1), pages 29-38, February.
    2. Nadide Sevil Halıcı-Tülüce & İbrahim Doğan & Cüneyt Dumrul, 2016. "Is income relevant for health expenditure and economic growth nexus?," International Journal of Health Economics and Management, Springer, pages 23-49.
    3. repec:wly:hlthec:v:26:y:2017:i:7:p:863-874 is not listed on IDEAS
    4. Badi H. Baltagi & Raffaele Lagravinese & Francesco Moscone & Elisa Tosetti, 2017. "Health Care Expenditure and Income: A Global Perspective," Health Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 863-874, July.
    5. DO ANGO, Simplicio & AMBA OYON, Claude Marius, 2016. "Health expenditure and Real disposable Income in the ECCAS: A Causal Study using spatial panel approach," MPRA Paper 79684, University Library of Munich, Germany.

    More about this item

    Keywords

    Health care expenditure; panel cointegration; Africa;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • I10 - Health, Education, and Welfare - - Health - - - General

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