IDEAS home Printed from https://ideas.repec.org/a/vrs/subboe/v69y2024i1p21-36n1002.html
   My bibliography  Save this article

Effects of Financial Inclusion and Out of Pockets Cost on Human Health (1990 - 2020)

Author

Listed:
  • Akintunde Temitope Sade

    (Osun State University, Nigeria)

  • Oladimeji Ifeade Adetutu

    (Osun State University, Nigeria)

  • Aribatise Adekunle

    (Wesley University Ondo, Nigeria)

Abstract

This study examined the dynamic relationship amongst financial inclusion, out of pocket expenditure and health outcome proxied by life expectancy. This was with the view to investigate the effects of financial inclusion and out-of-pocket medical expenses on health outcomes as well as the causal connections between various variables in Nigeria. Time series data from 1990 through 2020 were analysed using Autoregressive Distributed Lag (ARDL) and pairwise granger causality as the estimation technique. The study found a positive relationship between financial inclusion and health outcomes and there was a bidirectional causal relationship between financial inclusion and life expectancy and a unidirectional causal relationship running from out-ofpocket expenditure to life expectancy at 5% significance level and vice versa. The study also revealed that financial inclusion had a positive and significant effect on life expectancy in Nigeria. Also, out of pocket expenditure had revealed not to be statistically significant on life expectancy in the long-run.

Suggested Citation

  • Akintunde Temitope Sade & Oladimeji Ifeade Adetutu & Aribatise Adekunle, 2024. "Effects of Financial Inclusion and Out of Pockets Cost on Human Health (1990 - 2020)," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 69(1), pages 21-36.
    • Handle: RePEc:vrs:subboe:v:69:y:2024:i:1:p:21-36:n:1002
    DOI: 10.2478/subboec-2024-0002
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/subboec-2024-0002
    Download Restriction: no
    File URL: https://libkey.io/10.2478/subboec-2024-0002?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. Appleton, Simon, 1995. "The Interaction between Poverty and Gender in Human Capital Accumulation: The Case of the Primary Leaving Examination in Cote d'Ivoire," Journal of African Economies, Centre for the Study of African Economies, vol. 4(2), pages 192-224, October.
    2. Martin Brown & Benjamin Guin & Karolin Kirschenmann, 2016. "Microfinance Banks and Financial Inclusion," Review of Finance, European Finance Association, vol. 20(3), pages 907-946.
    3. Michael N Onah & Veloshnee Govender, 2014. "Out-of-Pocket Payments, Health Care Access and Utilisation in South-Eastern Nigeria: A Gender Perspective," PLOS ONE, Public Library of Science, vol. 9(4), pages 1-11, April.
    4. Razak M Gyasi & David R Phillips & Daniel Buor & Deborah Carr, 2020. "The Role of a Health Protection Scheme in Health Services Utilization Among Community-Dwelling Older Persons in Ghana," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 75(3), pages 661-673.
    5. Kim, Kwangkee & Moody, Philip M., 1992. "More resources better health? A cross-national perspective," Social Science & Medicine, Elsevier, vol. 34(8), pages 837-842, April.
    6. Demirguc-Kunt, Asli & Klapper, Leora, 2012. "Financial inclusion in Africa : an overview," Policy Research Working Paper Series 6088, The World Bank.
    7. Woldemichael, Andinet & Gurara, Daniel Zerfu & Shimeles, Abebe, 2016. "Community-Based Health Insurance and Out-of-Pocket Healthcare Spending in Africa: Evidence from Rwanda," IZA Discussion Papers 9922, Institute of Labor Economics (IZA).
    8. Amy Finkelstein & Sarah Taubman & Bill Wright & Mira Bernstein & Jonathan Gruber & Joseph P. Newhouse & Heidi Allen & Katherine Baicker, 2012. "The Oregon Health Insurance Experiment: Evidence from the First Year," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(3), pages 1057-1106.
    9. Aguila, Emma & Angrisani, Marco & Blanco, Luisa R., 2016. "Ownership of a bank account and health of older Hispanics," Economics Letters, Elsevier, vol. 144(C), pages 41-44.
    10. Burnside, Craig & Dollar, David, 1998. "Aid, the incentive regime, and poverty reduction," Policy Research Working Paper Series 1937, The World Bank.
    11. Titus Galama, 2011. "A Contribution to Health Capital Theory," Working Papers WR-831, RAND Corporation.
    12. Meike Irene Nakovics & Stephan Brenner & Grace Bongololo & Jobiba Chinkhumba & Olivier Kalmus & Gerald Leppert & Manuela De Allegri, 2020. "Determinants of healthcare seeking and out-of-pocket expenditures in a “free” healthcare system: evidence from rural Malawi," Health Economics Review, Springer, vol. 10(1), pages 1-12, December.
    13. Michael Grossman, 1972. "The Demand for Health: A Theoretical and Empirical Investigation," NBER Books, National Bureau of Economic Research, Inc, number gros72-1, May.
    14. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, 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. 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).
    2. ATAKE, Esso - Hanam, 2014. "Financement Public des dépenses de santé et survie infantile au Togo [Public funding of health expenditure and infant survival in Togo]," MPRA Paper 59320, University Library of Munich, Germany, revised 26 Oct 2014.
    3. 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).
    4. Marwa Farag & A. Nandakumar & Stanley Wallack & Dominic Hodgkin & Gary Gaumer & Can Erbil, 2013. "Health expenditures, health outcomes and the role of good governance," International Journal of Health Economics and Management, Springer, vol. 13(1), pages 33-52, March.
    5. 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.
    6. Ma Yuan & Cao Yue-qun & Wang Hao & Xiang Hong, 2022. "Does Social Capital Promote Health?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(2), pages 501-524, July.
    7. Bolin, Kristian & Lindgren, Björn, 2016. "Non-monotonic health behaviours – implications for individual health-related behaviour in a demand-for-health framework," Journal of Health Economics, Elsevier, vol. 50(C), pages 9-26.
    8. John Cawley & Alex Susskind & Barton Willage, 2020. "The Impact of Information Disclosure on Consumer Behavior: Evidence from a Randomized Field Experiment of Calorie Labels on Restaurant Menus," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 39(4), pages 1020-1042, September.
    9. Galama, T. & Hullegie, P. & Meijer, E. & Outcault, S., 2012. "Empirical evidence for decreasing returns to scale in a health capital model," Health, Econometrics and Data Group (HEDG) Working Papers 12/05, HEDG, c/o Department of Economics, University of York.
    10. Mr. Emanuele Baldacci & Mr. Larry Q Cui & Mr. Benedict J. Clements & Mr. Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    11. 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.
    12. Jung, Juergen & Tran, Chung, 2022. "Social health insurance: A quantitative exploration," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    13. Mansour Farahani & S. V. Subramanian & David Canning, 2010. "Effects of state‐level public spending on health on the mortality probability in India," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1361-1376, November.
    14. Titus J. Galama & Hans van Kippersluis, 2015. "A Theory of Education and Health," CINCH Working Paper Series 1503, Universitaet Duisburg-Essen, Competent in Competition and Health, revised Mar 2015.
    15. Audrey Verdier‐Chouchane & Karagueuzian Charlotte, 2016. "Working Paper 239 - Concept and measure of inclusive health across countries," Working Paper Series 2347, African Development Bank.
    16. Yusuke Kamiya, 2010. "Determinants of Health in Developing Countries:Cross-Country Evidence," OSIPP Discussion Paper 10E009, Osaka School of International Public Policy, Osaka University.
    17. Md. Samsul Alam & Muhammad Shahbaz & Sudharshan Reddy Paramati, 2016. "The Role of Financial Development and Economic Misery on Life Expectancy: Evidence from Post Financial Reforms in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 481-497, September.
    18. Pilar García-Goméz & Titus Galama & Eddy van Doorslaer & à ngel López-Nicholás, 2017. "Interactions between Financial Incentives and Health in the Early Retirement Decision," Working Papers 2017-038, Human Capital and Economic Opportunity Working Group.
    19. Titus J. Galama & Hans van Kippersluis, 2013. "Health Inequalities through the Lens of Health-Capital Theory: Issues, Solutions, and Future Directions," Research on Economic Inequality, in: Health and Inequality, volume 21, pages 263-284, Emerald Group Publishing Limited.
    20. Titus J Galama & Hans van Kippersluis, 2019. "A Theory of Socio-economic Disparities in Health over the Life Cycle," The Economic Journal, Royal Economic Society, vol. 129(617), pages 338-374.

    More about this item

    Keywords

    Financial inclusion; Out-of-pocket expenditure; life expectancy; ARDL; pairwise granger causality;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    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:vrs:subboe:v:69:y:2024:i:1:p:21-36:n:1002. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.