Akomolafe, K. J. and Awoyemi, B. O. and Yusufu, F. O. (2021) The Effect of Private and Public Health Expenditure on Economic Growth in Sub-Saharan Africa. Journal of Economics, Management and Trade. pp. 26-39. ISSN 2456-9216
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Abstract
This study examined the relationship between health expenditure and economic growth in sub-Saharan Africa. The General Method of Moments (GMM) estimation technique was used and the data covered the period 2000-2019 for forty-six countries. The results of the difference GMM-1 and GMM-2 steps indicate that a 1% change in public health expenditure per capita (LPUHE_PC) is associated with a 0.1362% and 0.1521% rise in GDP per capita (GDP_PC) in the short run. The system GMM-1 and GMM-2 steps indicate that a percentage change in LPUHE_PC is associated with a respective 0.0148% and 0.0109% rise in GDP_PC in the short run at a 1% level of significance, on average ceteris paribus. In the long run, the difference GMM-2 step indicates that a 1% change in the LPUHE_PC has a larger positive effect on the GDP_PC (1.34899%) than in the short-run (0.1521%). The result of the system GMM-1 and GMM-2 step indicates that a 1% change in LPUHE_PC has a larger positive effect on the GDP_PC in the long run (0.39967% and 0.24135%) than in the short-run (0.0148% and 0.0109%) respectively. This analysis indicates that a rise in government health spending will stimulate economic growth with a larger effect in the long run than in the short run in Sub-Saharan Africa. Thus, the government should increase health budgetary allocations.
Item Type: | Article |
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Subjects: | Asian Repository > General Subject > Multidisciplinary 0 Subject > Multidisciplinary |
Depositing User: | Managing Editor |
Date Deposited: | 29 Jul 2022 08:00 |
Last Modified: | 29 Jul 2022 08:00 |
URI: | http://eprints.asianrepository.com/id/eprint/1917 |