IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v76y2015icp165-179.html
   My bibliography  Save this article

The Effectiveness of Health Expenditure on the Proximate and Ultimate Goals of Healthcare in Sub-Saharan Africa

Author

Listed:
  • Ssozi, John
  • Amlani, Shirin

Abstract

Using the General Method of Moments technique we examine the effectiveness of health expenditure from 1995 to 2011 in 43 nations of Sub-Saharan Africa. Health expenditure is broken into resources to government and non-government entities, private not out-of-pocket, and private out-of-pocket, and we find that while it has a higher effect on the proximate targets such as immunization, malaria, HIV/AIDS, and nutrition, it has a lower effect on the ultimate goals which are life expectancy, infant, and child mortality. Public health expenditure would become more effective if public service delivery improves, in addition to more female education and inclusive healthcare systems.

Suggested Citation

  • Ssozi, John & Amlani, Shirin, 2015. "The Effectiveness of Health Expenditure on the Proximate and Ultimate Goals of Healthcare in Sub-Saharan Africa," World Development, Elsevier, vol. 76(C), pages 165-179.
    • Handle: RePEc:eee:wdevel:v:76:y:2015:i:c:p:165-179
    DOI: 10.1016/j.worlddev.2015.07.010
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X15001692
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2015.07.010?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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. Lant Pritchett & Lawrence H. Summers, 1996. "Wealthier is Healthier," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 841-868.
    3. Asongu Simplice, 2014. "Globalization and health worker crisis: what do wealth-effects tell us?," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 41(12), pages 1243-1264, November.
    4. Kosack, Stephen, 2003. "Effective Aid: How Democracy Allows Development Aid to Improve the Quality of Life," World Development, Elsevier, vol. 31(1), pages 1-22, January.
    5. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    6. Devarajan, Shantayanan & Swaroop, Vinaya & Heng-fu, Zou, 1996. "The composition of public expenditure and economic growth," Journal of Monetary Economics, Elsevier, vol. 37(2-3), pages 313-344, April.
    7. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    8. Joseph L. Dieleman & Casey M. Graves & Michael Hanlon, 2013. "The Fungibility of Health Aid: Reconsidering the Reconsidered," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1755-1762, December.
    9. 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.
    10. Bidani, Benu & Ravallion, Martin, 1997. "Decomposing social indicators using distributional data," Journal of Econometrics, Elsevier, vol. 77(1), pages 125-139, March.
    11. Nicolas Van de Sijpe, 2013. "Is Foreign Aid Fungible? Evidence from the Education and Health Sectors," The World Bank Economic Review, World Bank, vol. 27(2), pages 320-356.
    12. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    13. Thomas Ziesemer, 2016. "The Impact of Development Aid on Education and Health: Survey and New Evidence for Low‐income Countries from Dynamic Models," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(8), pages 1358-1380, November.
    14. Gomanee, Karuna & Morrissey, Oliver & Mosley, Paul & Verschoor, Arjan, 2005. "Aid, Government Expenditure, and Aggregate Welfare," World Development, Elsevier, vol. 33(3), pages 355-370, March.
    15. Justin Yifu Lin, 2013. "New structural economics: the third wave of development thinking," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(2), pages 1-13, November.
    16. Joseph L. Dieleman & Michael Hanlon, 2014. "Measuring The Displacement And Replacement Of Government Health Expenditure," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 129-140, February.
    17. Filmer, Deon & Pritchett, Lant, 1999. "The impact of public spending on health: does money matter?," Social Science & Medicine, Elsevier, vol. 49(10), pages 1309-1323, November.
    18. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    19. Claudia R. Williamson, 2008. "Foreign Aid and Human Development: The Impact of Foreign Aid to the Health Sector," Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 188-207, July.
    20. John Anyanwu & Andrew E. O. Erhijakpor, 2007. "Working Paper 91 - Health Expenditures and Health Outcomes in Africa," Working Paper Series 226, African Development Bank.
    21. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    22. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    23. Nicolas Van de Sijpe, 2013. "The Fungibility of Health Aid Reconsidered," Journal of Development Studies, Taylor & Francis Journals, vol. 49(12), pages 1746-1754, 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. Asongu, Simplice & Boateng, Agyenim & Akamavi, Raphael, 2016. "Mobile Phone Innovation and Inclusive Human Development: Evidence from Sub-Saharan Africa," MPRA Paper 75046, University Library of Munich, Germany.
    2. Guilherme Correa Petry & Ely José Mattos, 2023. "The Effects of Public Expenditure on Municipal Development: A Dynamic Panel Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 695-714, January.
    3. Simplice A. Asongu, 2021. "The Effects of Mobile Phone Technology, Knowledge Creation and Diffusion on Inclusive Human Development in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1367-1398, September.
    4. Nguimkeu, Pierre & Tadadjeu, Sosson, 2021. "Why is the number of COVID-19 cases lower than expected in Sub-Saharan Africa? A cross-sectional analysis of the role of demographic and geographic factors," World Development, Elsevier, vol. 138(C).
    5. Simplice A. Asongu, 2018. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 81-135, March.
    6. Fiorini, Matteo & Hoekman, Bernard, 2018. "Services trade policy and sustainable development," World Development, Elsevier, vol. 112(C), pages 1-12.
    7. Simplice Asongu & Jacinta C. Nwachukwu, 2016. "Mobile Phones in the Diffusion of Knowledge and Persistence in Inclusive Human Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 16/009, African Governance and Development Institute..
    8. Mallesh Ummalla & Asharani Samal & Abdulrasheed Zakari & Sathu Lingamurthy, 2022. "The effect of sanitation and safe drinking water on child mortality and life expectancy: Evidence from a global sample of 100 countries," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 778-797, December.
    9. 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.
    10. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Not all that glitters is gold: ICT and inclusive human development in Sub-Saharan Africa," International Journal of Happiness and Development, Inderscience Enterprises Ltd, vol. 3(4), pages 303-322.
    11. Bousmah, Marwân-al-Qays & Ventelou, Bruno & Abu-Zaineh, Mohammad, 2016. "Medicine and democracy: The importance of institutional quality in the relationship between health expenditure and health outcomes in the MENA region," Health Policy, Elsevier, vol. 120(8), pages 928-935.
    12. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa," Technovation, Elsevier, vol. 55, pages 1-13.
    13. Rezwanul Hasan Rana & Khorshed Alam & Jeff Gow, 2020. "The Impact of Immigration on Public and Out-of-Pocket Health Expenditure in OECD Countries," Journal of International Migration and Integration, Springer, vol. 21(2), pages 485-508, June.
    14. Mudassir Ali & Durdana Qaiser Gilani & An ul Abdin, 2020. "Public Health Care and Government Health Expenditures in Pakistan," Journal of Economic Impact, Science Impact Publishers, vol. 2(3), pages 93-98.
    15. Pereira, Miguel Alves & Marques, Rui Cunha, 2022. "The ‘Sustainable Public Health Index’: What if public health and sustainable development are compatible?," World Development, Elsevier, vol. 149(C).
    16. 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.
    17. Ramkissoon, Benjamin & Deonanan, Regan, 2023. "How do remittances impact child mortality and are there preconditions?," Social Science & Medicine, Elsevier, vol. 333(C).
    18. Pereira, Miguel Alves & Camanho, Ana Santos & Marques, Rui Cunha & Figueira, José Rui, 2021. "The convergence of the World Health Organization Member States regarding the United Nations’ Sustainable Development Goal ‘Good health and well-being’," Omega, Elsevier, vol. 104(C).
    19. Karim Barkat & Zouhair Mrabet & Mouyad Alsamara, 2016. "Does Official Development Assistance for health from developed countries displace government health expenditure in Sub-Saharan countries?," Economics Bulletin, AccessEcon, vol. 36(3), pages 1616-1635.
    20. Jiannan Li & Bocong Yuan, 2019. "Understanding the effectiveness of government health expenditure in improving health equity: Preliminary evidence from global health expenditure and child mortality rate," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(4), pages 1968-1979, October.
    21. Durdana Qaiser Gillani & Syed Ahmad Saad Gillani & Muhammad Zahid Naeem & Cristi Spulbar & Elizabeth Coker-Farrell & Abdullah Ejaz & Ramona Birau, 2021. "The Nexus between Sustainable Economic Development and Government Health Expenditure in Asian Countries Based on Ecological Footprint Consumption," Sustainability, MDPI, vol. 13(12), pages 1-15, June.

    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. 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).
    3. Yusuke Kamiya, 2010. "Determinants of Health in Developing Countries:Cross-Country Evidence," OSIPP Discussion Paper 10E009, Osaka School of International Public Policy, Osaka University.
    4. Abbas, Syed Ali & Selvanathan, Eliyathamby A. & Selvanathan, Saroja & Bandaralage, Jayatilleke S., 2021. "Are remittances and foreign aid interlinked? Evidence from least developed and developing countries," Economic Modelling, Elsevier, vol. 94(C), pages 265-275.
    5. Joseph L. Dieleman & Michael Hanlon, 2014. "Measuring The Displacement And Replacement Of Government Health Expenditure," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 129-140, February.
    6. 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.
    7. John Ssozi & Edward Bbaale, 2019. "The Effects of the Catch-Up Mechanism on the Structural Transformation of Sub-Saharan Africa," Economies, MDPI, vol. 7(4), pages 1-27, November.
    8. Thomas Ziesemer, 2016. "The Impact of Development Aid on Education and Health: Survey and New Evidence for Low‐income Countries from Dynamic Models," Journal of International Development, John Wiley & Sons, Ltd., vol. 28(8), pages 1358-1380, November.
    9. Ouedraogo, Idrissa & Ngoa Tabi, Henri & Atangana Ondoa, Henri & Jiya, Alex Nester, 2022. "Institutional quality and human capital development in Africa," Economic Systems, Elsevier, vol. 46(1).
    10. 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.
    11. Kosack, Stephen & Tobin, Jennifer L., 2015. "Which Countries’ Citizens Are Better Off With Trade?," World Development, Elsevier, vol. 76(C), pages 95-113.
    12. Devdatta Ray & Mikael Linden, 2020. "Health expenditure, longevity, and child mortality: dynamic panel data approach with global data," International Journal of Health Economics and Management, Springer, vol. 20(1), pages 99-119, March.
    13. Yousuf, Ahmed Sadek, 2012. "Assessing Impact of Health Oriented Aid on Infant Mortality Rates," EconStor Preprints 67391, ZBW - Leibniz Information Centre for Economics.
    14. Oto-Peralías, Daniel & Romero-Ávila, Diego & Usabiaga, Carlos, 2013. "Does fiscal decentralization mitigate the adverse effects of corruption on public deficits?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 205-231.
    15. Yousuf, Ahmed Sadek, 2012. "Impact of Health Aid on Infant Mortality Rate," MPRA Paper 42945, University Library of Munich, Germany, revised 12 Oct 2012.
    16. Blane D. Lewis, 2017. "Local government spending and service delivery in Indonesia: the perverse effects of substantial fiscal resources," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1695-1707, November.
    17. Olorunfemi Yasiru Alimi & Kazeem Bello Ajide, 2021. "The role of institutions in environment–health outcomes Nexus: empirical evidence from sub-Saharan Africa," Economic Change and Restructuring, Springer, vol. 54(4), pages 1205-1252, November.
    18. Dierk Herzer, 2019. "The long-run effect of aid on health: evidence from panel cointegration analysis," Applied Economics, Taylor & Francis Journals, vol. 51(12), pages 1319-1338, March.
    19. Daniel Ştefan Armeanu & Georgeta Vintilă & Ştefan Cristian Gherghina, 2017. "Empirical Study towards the Drivers of Sustainable Economic Growth in EU-28 Countries," Sustainability, MDPI, vol. 10(1), pages 1-22, December.
    20. Cho, Seo-young & Vadlamannati, Krishna Chaitanya, 2010. "Compliance for big brothers: An empirical analysis on the impact of the anti-trafficking protocol," University of Göttingen Working Papers in Economics 118, University of Goettingen, Department of Economics.

    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:eee:wdevel:v:76:y:2015:i:c:p:165-179. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.