Dynamic inference of healthcare expenditure on economic growth in Sub-Saharan Africa: a dynamic heterogenous panel data analysis
Journal of Economic and Administrative Sciences
ISSN: 1026-4116
Article publication date: 18 January 2022
Abstract
Purpose
This article investigates the dynamic implication of healthcare expenditure on economic growth in the selected ten Sub-Saharan African countries over the period 2000–2018.
Design/methodology/approach
The study methodology included dynamic heterogenous panel, using mean group and pooled mean group estimators. The investigation of the healthcare expenditure and economic growth nexus was achieved while controlling the effects of investment, savings, labor force and life expectancy via interaction terms.
Findings
The results from linear healthcare expenditure have a significant positive impact on economic growth, while the nonlinear estimates through the interaction terms between healthcare expenditure and investment have a negative statistically significant impact on growth. The marginal effect of healthcare expenditure evaluated at the minimum and maximum level of investment is positive, suggesting the impact of health expenditure on growth does not vary with the level of investments. This result responds to the primary objective of the article.
Research limitations/implications
In policy terms, the impact of investment on healthcare is essential to addressing future health crises. The impact of coronavirus disease 2019 (COVID-19) can never be separated from the shortages or low prioritization of health against other sectors of the economy. The article also provides an insight to policymakers on the demand for policy reform that will boost and make the health sector attractive to both domestic and foreign direct investment.
Originality/value
Given the vulnerability of SSA to the health crisis, there are limited studies to examine this phenomenon and first to address the needed investment priorities to the health sector infrastructure in SSA.
Keywords
Acknowledgements
The authors are indebted to the editor and reviewers for constructive comments.
Data availability statement: The data that support the findings of this article are available from the corresponding author upon request.
Conflict of interest: We declare that there is no funding as regards the work, and no potential conflict of interest on this article.
Citation
Abdulqadir, I.A., Sa'idu, B.M., Adam, I.M., Haruna, F.B., Zubairu, M.A. and Aboki, M. (2022), "Dynamic inference of healthcare expenditure on economic growth in Sub-Saharan Africa: a dynamic heterogenous panel data analysis", Journal of Economic and Administrative Sciences, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEAS-03-2021-0049
Publisher
:Emerald Publishing Limited
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