IDEAS home Printed from https://ideas.repec.org/p/agd/wpaper/21-080.html
   My bibliography  Save this paper

The Impact of Financial Inclusion on Household Health Expenditures in Africa

Author

Listed:
  • Ofeh M. Edoh

    (University of Dschang, Cameroon)

  • Tii N. Nchofoung

    (University of Dschang, Cameroon)

  • Ofeh E. Anchi

    (University of Bamenda, Cameroon)

Abstract

This study examines the impact of financial inclusion on household health expenditure in 17 African countries. It argues that financial inclusion is an active influencer of individuals’ health demand and that Gross Domestic Product (GDP) per capita and voluntary health insurance schemes tend to be active transmission channels through which financial inclusion affects household health expenditures. The study used an instrumental variable (2SLS) technique for the analysis over a period from 2008 to 2017.Results from the study show that being financially included leads to increase household health expenditures. Suggestions for policy emerging from this study to governments in Africa are on the aspect of fostering financial inclusion to a wider population alongside enhancing the Universal Health Coverage (UHC) plan to ease the burden of out-of-pocket payments on households.

Suggested Citation

  • Ofeh M. Edoh & Tii N. Nchofoung & Ofeh E. Anchi, 2021. "The Impact of Financial Inclusion on Household Health Expenditures in Africa," Working Papers of the African Governance and Development Institute. 21/080, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:21/080
    as

    Download full text from publisher

    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/The-Impact-of-Financial-Inclusion-on-Household-Health-Expenditures-in-Africa.pdf
    File Function: Revised version, 2021
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "Finance, governance and inclusive education in Sub-Saharan Africa," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 17(8), pages 1044-1061, July.
    2. John Ele-Ojo Ataguba & Jane Goudge, 2012. "The Impact of Health Insurance on Health-care Utilisation and Out-of-Pocket Payments in South Africa," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 37(4), pages 633-654, October.
    3. Vanessa S. Tchamyou & Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "The Role of ICT in Modulating the Effect of Education and Lifelong Learning on Income Inequality and Economic Growth in Africa," African Development Review, African Development Bank, vol. 31(3), pages 261-274, September.
    4. Nchofoung, Tii N. & Achuo, Elvis Dze & Asongu, Simplice A., 2021. "Resource rents and inclusive human development in developing countries," Resources Policy, Elsevier, vol. 74(C).
    5. Weliswa Matekenya & Clement Moyo & Leward Jeke, 2021. "Financial inclusion and human development: Evidence from Sub-Saharan Africa," Development Southern Africa, Taylor & Francis Journals, vol. 38(5), pages 683-700, September.
    6. Silvia Fedeli, 2015. "The Impact of GDP on Health Care Expenditure: The Case of Italy (1982–2009)," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(2), pages 347-370, June.
    7. Tinh Doan & John Gibson & Mark Holmes, 2011. "Impacts of Household Credit on Education and Healthcare Spending by the Poor in Peri-urban Areas in Vietnam," Working Papers in Economics 11/06, University of Waikato.
    8. 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.
    9. Popoola, Oladayo Timothy, 2019. "Financial Inclusion and Health Shocks: A Panel Data Analysis of 36 African Countries," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(1), pages 45-51.
    10. Popoola, Oladayo Timothy, 2019. "Financial Inclusion and Health Shocks: A Panel Data Analysis of 36 African Countries," Asian Journal of Economics and Empirical Research, Asian Online Journal Publishing Group, vol. 6(1), pages 45-51.
    11. Jaison Chireshe & Matthew K. Ocran & Francesco Tajani, 2020. "Financial development and health care expenditure in Sub Saharan Africa Countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1771878-177, January.
    12. Anthanasius F. Tita & Meshach J. Aziakpono, 2017. "The effect of financial inclusion on welfare in sub-Saharan Africa: Evidence from disaggregated data," Working Papers 679, Economic Research Southern Africa.
    13. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    14. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    15. Isaac Koomson & Renato A. Villano & David Hadley, 2020. "Intensifying financial inclusion through the provision of financial literacy training: a gendered perspective," Applied Economics, Taylor & Francis Journals, vol. 52(4), pages 375-387, January.
    16. Jalilian, Hossein & Kirkpatrick, Colin, 2002. "Financial Development and Poverty Reduction in Developing Countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 7(2), pages 97-108, April.
    17. Sterling Edmonds & Mohammad Hajizadeh, 2019. "Assessing progressivity and catastrophic effect of out-of-pocket payments for healthcare in Canada: 2010–2015," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(7), pages 1001-1011, September.
    18. Hacer Özgen Narcı & İsmet Şahin & Hasan Yıldırım, 2015. "Financial catastrophe and poverty impacts of out-of-pocket health payments in Turkey," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 255-270, April.
    19. Isaac Koomson & Abdallah Abdul-Mumuni & Anthony Abbam, 2021. "Effect of financial inclusion on out-of-pocket health expenditure: empirics from Ghana," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1411-1425, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "The role of inclusive education in governance for inclusive economic participation: gender evidence from sub-Saharan Africa," Research Africa Network Working Papers 21/097, Research Africa Network (RAN).
    2. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    3. Jean‐Claude Kouladoum, 2023. "Technology and control of corruption in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1163-1180, August.

    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. Isaac Koomson & Abdallah Abdul-Mumuni & Anthony Abbam, 2021. "Effect of financial inclusion on out-of-pocket health expenditure: empirics from Ghana," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(9), pages 1411-1425, December.
    2. Hilaire Gbodja Houeninvo, 2022. "Effects of health expenditures on infant and child mortality rates: A dynamic panel data analysis of 37 African countries," African Development Review, African Development Bank, vol. 34(2), pages 255-267, June.
    3. Isaac Koomson & Raymond Elikplim Kofinti & Esther Laryea, 2024. "Financial inclusion and multidimensional child poverty," Review of Economics of the Household, Springer, vol. 22(1), pages 237-260, March.
    4. Tadadjeu, Sosson & Njangang, Henri & Asongu, Simplice A. & Kamguia, Brice, 2023. "Natural resources, child mortality and governance quality in African countries," Resources Policy, Elsevier, vol. 83(C).
    5. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Female unemployment, mobile money innovations and doing business by females," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-26, December.
    6. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "The role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana," Working Papers of the African Governance and Development Institute. 23/035, African Governance and Development Institute..
    7. Kossi Atsutsè Dziédzom Tsomdzo & Yacobou Sanoussi & Kodjo Evlo, 2022. "Investissement en santé et état de santé dans les pays de l'UEMOA: entre contribution publique et privée?," African Development Review, African Development Bank, vol. 34(2), pages 244-254, June.
    8. Simplice A. Asongu & Jean R. F. K. Bouanza & Armand F. Akpa, 2024. "Governance and Structural Transformation in Africa: Thresholds of Lifelong Gender Inclusive Education," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 24/010, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    9. Elvis Dze Achuo & Tii N. Nchofoung & Simplice A. Asongu & Gildas Dohba Dinga, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," Research Africa Network Working Papers 21/073, Research Africa Network (RAN).
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "Microfinance institutions and female entrepreneurship in Sub-Saharan Africa: avoidable female unemployment thresholds," Working Papers of the African Governance and Development Institute. 23/018, African Governance and Development Institute..
    11. Hermann Ndoya & Simplice A. Asongu, 2022. "Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 20(1), pages 1-19, October.
    12. Simplice A. Asongu, 2023. "Mobile Phone Innovation and Doing Business in Sub-Saharan Africa," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 9(2), pages 238-269, July.
    13. Asongu, Simplice & Amari, Mouna & Jarboui, Anis & Mouakhar, Khaireddine, 2021. "ICT dynamics for gender inclusive intermediary education: Minimum poverty and inequality thresholds in developing countries," Telecommunications Policy, Elsevier, vol. 45(5).
    14. Elvis Dze Achuo & Simplice A. Asongu & Vanessa S. Tchamyou, 2022. "Women empowerment and environmental sustainability in Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 22/003, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    15. Tii N. Nchofoung & Simplice A. Asongu & Arsène A. Njamen Kengdo & Elvis D. Achuo, 2022. "Linear and non‐linear effects of infrastructures on inclusive human development in Africa," African Development Review, African Development Bank, vol. 34(1), pages 81-96, March.
    16. Kossova, Elena & Kosorukova, Mariia, 2023. "Estimation of the treatment effect of higher education on health: Comparison of the multivariate recursive probit model and matching," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 69, pages 65-90.
    17. Vanessa S. Tchamyou & Juste Some & Simplice A. Asongu, 2022. "The African Continental Free Trade Area and Financial Development for Women Economic Participation in Africa," Working Papers of the African Governance and Development Institute. 22/040, African Governance and Development Institute..
    18. Asongu, Simplice A. & le Roux, Sara, 2023. "The role of mobile money innovations in transforming unemployed women to self-employed women in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    19. Simplice A. Asongu & Jean R. F. K. Bouanza & Peter Agyemang-Mintah, 2024. "Globalization in Lifelong Gender Inclusive Education for Structural Transformation in Africa," Working Papers 24/013, European Xtramile Centre of African Studies (EXCAS).
    20. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "The Comparative Economics of Globalisation and Governance in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 22/050, African Governance and Development Institute..

    More about this item

    Keywords

    Financial inclusion; Health expenditure; Out-of-pocket (OOP) payments; 2SLS;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:agd:wpaper:21/080. 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: Asongu Simplice (email available below). General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    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.