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Health Spending Efficiency in Developing Asia

Author

Listed:
  • Bajaro, Donna Faye

    (Asian Development Bank)

  • Jinjarak, Yothin

    (Asian Development Bank)

  • Myoda, Yuho

    (Asian Development Bank)

  • Park, Donghyun

    (Asian Development Bank)

  • Quising, Pilipinas

    (Asian Development Bank)

Abstract

The coronavirus disease (COVID-19) pandemic placed health-care systems around the world under great stress. The sharp increase in demand for health care highlighted the importance of efficient health spending. The negative impact of the pandemic on global economic growth further strengthened the case for efficient health spending. In this paper, we examine health spending efficiency in developing Asia. Using data envelopment analysis, we find that East Asia has the highest average output- and input-oriented technical efficiency scores among the subregions. Universal health coverage service coverage index and population density have the strongest effect on health spending efficiency. In addition, using the novel framework of macro-level efficiency analysis, we find that developing Asia falls short of optimal total health expenditures. Caucasus and Central Asia has the highest average allocative efficiency score among the subregions. Overall, developing Asia has substantial room for improvement in both technical and allocative efficiency.

Suggested Citation

  • Bajaro, Donna Faye & Jinjarak, Yothin & Myoda, Yuho & Park, Donghyun & Quising, Pilipinas, 2023. "Health Spending Efficiency in Developing Asia," ADB Economics Working Paper Series 699, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0699
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    Keywords

    health spending; data envelopment analysis; technical efficiency; allocative efficiency;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I10 - Health, Education, and Welfare - - Health - - - General

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