IDEAS home Printed from https://ideas.repec.org/a/sae/vikjou/v47y2022i3p205-216.html
   My bibliography  Save this article

Health Expenditures, Health Infrastructure and Health Status in SAARC Countries: A Panel Data Analysis

Author

Listed:
  • Subhalaxmi Mohapatra

Abstract

Scholars in health economics have been studying the relationship between healthcare expenditure and health outcomes for the last half-century. Researchers emphasized the increase of public health expenditure towards providing primary healthcare based on the logic that health expenditure has a direct effect on the health outcomes of the people. However, such studies have a lot of inconsistencies. Given the background, the present study has three research objectives. First, to investigate the effect of healthcare spending on multiple health outcomes in SAARC nations after controlling for country-specific health infrastructures and economic conditions. Second, to undertake a differential analysis of the effect of public and private healthcare spending (both aggregate and out of pocket) on specific health outcomes. Third, to explore the presence (if any) of the differential effect of health expenditure and health infrastructure variables on specific health outcome variables, including mortality and morbidity indicators. Based on a 20-year (1993–2012) panel data from seven SAARC countries, health expenditure was found to influence improved health outcomes in SAARC nations. In addition, the differential effect of public, private and out-of-pocket (OOP) health expenditure was observed on different health outcomes. Thus, OOP expenditures was found to be the major influencer of life expectancy, death rate and TB instances, while public expenditure was found to be influential for improving infant mortality rate (IMR). The present study supports the notion that disaggregated effects of health expenditure (by including the effect of public, private and OOP expenditures) are needed to get a complete understanding of the health expenditure–health outcome linkage. In addition, the findings emphasize on the role of proximal predictors of health outcomes (alongside expenditure variables in the same model) as important inclusion in the health expenditure-health outcome investigation.

Suggested Citation

  • Subhalaxmi Mohapatra, 2022. "Health Expenditures, Health Infrastructure and Health Status in SAARC Countries: A Panel Data Analysis," Vikalpa: The Journal for Decision Makers, , vol. 47(3), pages 205-216, September.
    • Handle: RePEc:sae:vikjou:v:47:y:2022:i:3:p:205-216
    DOI: 10.1177/02560909221113382
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/02560909221113382
    Download Restriction: no
    File URL: https://libkey.io/10.1177/02560909221113382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jacob Novignon & Solomon Olakojo & Justice Nonvignon, 2012. "The effects of public and private health care expenditure on health status in sub-Saharan Africa: new evidence from panel data analysis," Health Economics Review, Springer, vol. 2(1), pages 1-8, December.
    2. Gerdtham, Ulf-G. & Jonsson, Bengt, 2000. "International comparisons of health expenditure: Theory, data and econometric analysis," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 1, pages 11-53, Elsevier.
    3. John Anyanwu & Andrew E. O. Erhijakpor, 2009. "Health Expenditures and Health Outcomes in Africa," African Development Review, African Development Bank, vol. 21(2), pages 400-433.
    4. Kaushalendra Kumar & Ashish Singh & Santosh Kumar & Faujdar Ram & Abhishek Singh & Usha Ram & Joel Negin & Paul R Kowal, 2015. "Socio-Economic Differentials in Impoverishment Effects of Out-of-Pocket Health Expenditure in China and India: Evidence from WHO SAGE," PLOS ONE, Public Library of Science, vol. 10(8), pages 1-19, August.
    5. Farasat A. S. Bokhari & Yunwei Gai & Pablo Gottret, 2007. "Government health expenditures and health outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 16(3), pages 257-273, March.
    6. Potrafke, Niklas, 2010. "The growth of public health expenditures in OECD countries: Do government ideology and electoral motives matter?," Journal of Health Economics, Elsevier, vol. 29(6), pages 797-810, December.
    7. Sherry Glied & Adriana Lleras-Muney, 2003. "Health Inequality, Education and Medical Innovation," NBER Working Papers 9738, National Bureau of Economic Research, Inc.
    8. David Cutler & Angus Deaton & Adriana Lleras-Muney, 2006. "The Determinants of Mortality," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 97-120, Summer.
    9. Cai, Lixin, 2010. "The relationship between health and labour force participation: Evidence from a panel data simultaneous equation model," Labour Economics, Elsevier, vol. 17(1), pages 77-90, January.
    10. Sherry Glied & Adriana Lleras-Muney, 2003. "Health Inequality, Education and Medical Innovation," Working Papers 255, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
    11. Adam Wagstaff & Mariam Claeson, 2004. "The Millennium Development Goals for Health : Rising to the Challenges," World Bank Publications - Books, The World Bank Group, number 14954, December.
    12. Masha F. Somi & James R. G. Butler & Farshid Vahid & Joseph D. Njau & Salim Abdulla, 2009. "Household responses to health risks and shocks: A study from rural Tanzania raises some methodological issues," Journal of International Development, John Wiley & Sons, Ltd., vol. 21(2), pages 200-211.
    13. Burnside, Craig & Dollar, David, 1998. "Aid, the incentive regime, and poverty reduction," Policy Research Working Paper Series 1937, The World Bank.
    14. J. Paul Elhorst, 2003. "Specification and Estimation of Spatial Panel Data Models," International Regional Science Review, , vol. 26(3), pages 244-268, July.
    15. Sonia Bhalotra, 2007. "Spending to save? State health expenditure and infant mortality in India," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 911-928, September.
    16. Francesco Grigoli & Javier Kapsoli, 2018. "Waste not, want not: The efficiency of health expenditure in emerging and developing economies," Review of Development Economics, Wiley Blackwell, vol. 22(1), pages 384-403, February.
    17. Mark Berger & Jodi Messer, 2002. "Public financing of health expenditures, insurance, and health outcomes," Applied Economics, Taylor & Francis Journals, vol. 34(17), pages 2105-2113.
    18. Mahfuz Kabir, 2008. "Determinants of life expectancy in developing countries," Journal of Developing Areas, Tennessee State University, College of Business, vol. 41(2), January-M.
    19. Fred Goldman & Michael Grossman, 1988. "The Impact of Public Health Policy: The Case of Community Health Centers," Eastern Economic Journal, Eastern Economic Association, vol. 14(1), pages 63-72, Jan-Mar.
    20. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc.
    21. Marijn Verhoeven & Mr. Sanjeev Gupta & Mr. Erwin H Tiongson, 1999. "Does Higher Government Spending Buy Better Results in Education and Health Care?," IMF Working Papers 1999/021, International Monetary Fund.
    22. repec:pri:cheawb:adriana_healthinequality is not listed on IDEAS
    23. Paul M. Romer, 1994. "The Origins of Endogenous Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 3-22, Winter.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Subhalaxmi Mohapatra, 2017. "Health inequity and health outcome: a causal linkage study of low and middle income countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(6), pages 2475-2488, November.
    2. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2224, African Development Bank.
    3. AfDB AfDB, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 2304, African Development Bank.
    4. Jaison Chireshe & Matthew K. Ocran, 2020. "Health care expenditure and health outcomes in sub‐Saharan African countries," African Development Review, African Development Bank, vol. 32(3), pages 349-361, September.
    5. Noshaba Aziz & Jun He & Tanwne Sarker & Hongguang Sui, 2021. "Exploring the Role of Health Expenditure and Maternal Mortality in South Asian Countries: An Approach towards Shaping Better Health Policy," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    6. S.N. Yashin & N.I. Yashina & E.V. Poyushcheva & E.S. Malysheva & N.N. Pronchatova-Rubtsova & O.I. Kashina, 2018. "Evaluating the Effectiveness of Public Health Financing Based on Financial and Non-Financial Indicators in Terms of the Knowledge Economy," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 112-123.
    7. Micheal Kofi Boachie & K. Ramu & Tatjana Põlajeva, 2018. "Public Health Expenditures and Health Outcomes: New Evidence from Ghana," Economies, MDPI, vol. 6(4), pages 1-25, October.
    8. Fiseha Gebregziabher & Miguel Niño-Zarazúa, 2014. "Social Spending and Aggregate Welfare in Developing and Transition Economies," WIDER Working Paper Series wp-2014-082, World Institute for Development Economic Research (UNU-WIDER).
    9. Zechariah Langnel & Ponlapat Buracom, 2020. "Governance, health expenditure and infant mortality in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 32(4), pages 673-685, December.
    10. Gebregziabher, Fiseha & Niño-Zarazúa, Miguel, 2014. "Social spending and aggregate welfare in developing and transition economies," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    11. Carl Grekou & Romain Perez, 2014. "Child Mortality in sub-Saharan Africa: Why Public Health Spending Matters," EconomiX Working Papers 2014-28, University of Paris Nanterre, EconomiX.
    12. Micheal Kofi Boachie & Tatjana Põlajeva & Albert Opoku Frimpong, 2020. "Infant Mortality in Low- and Middle-income Countries: Does Government Health Spending Matter?," Journal of Development Policy and Practice, , vol. 5(1), pages 54-73, January.
    13. Mohanty, Ranjan Kumar & Behera, Deepak Kumar, 2020. "How Effective is Public Health Care Expenditure in Improving Health Outcome? An Empirical Evidence from the Indian States," Working Papers 20/300, National Institute of Public Finance and Policy.
    14. Kato, Kepha & Mugarura, Alex & Keberuka, Will & Matovu, Fred & Yawe, Bruno L., 2018. "The Effect of Public Health Spending on Under-five Mortality Rate in Uganda," African Journal of Economic Review, African Journal of Economic Review, vol. 6(1), January.
    15. Yusuf, Shahid & Nabeshima, Kaoru & Wei Ha, 2007. "What makes cities healthy ?," Policy Research Working Paper Series 4107, The World Bank.
    16. Bienvenido Ortega & Jesús Sanjuán & Antonio Casquero, 2017. "Determinants of efficiency in reducing child mortality in developing countries. The role of inequality and government effectiveness," Health Care Management Science, Springer, vol. 20(4), pages 500-516, December.
    17. Ji, Sisi & Zhu, Zheyi, 2022. "Does higher education matter for health?," Cardiff Economics Working Papers E2022/4, Cardiff University, Cardiff Business School, Economics Section.
    18. Seemab Gillani & Muhammad Nouman Shafiq & Tusawar Iftikhar Ahmad, 2019. "Military Expenditures and Health Outcomes: A Global Perspective," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 1(1), pages 1-20, June.
    19. Dhrifi, Abdelhafidh, 2018. "Health-care expenditures, economic growth and infant mortality: evidence from developed and developing countries," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    20. Agénor, Pierre-Richard & Canuto, Otaviano & da Silva, Luiz Pereira, 2014. "On gender and growth: The role of intergenerational health externalities and women's occupational constraints," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 132-147.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:vikjou:v:47:y:2022:i:3:p:205-216. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.