scholarly journals The Role of Institutional Quality in Health Expenditure-Labour Force Participation Nexus in Africa

Author(s):  
Olaide Sekinat Opeloyeru ◽  
Temitope Olanike Faronbi ◽  
Isiaka Akande Raifu

Abstract The study investigated the role of institutional quality in the relationship between health expenditure and labour force participation (LFP) in Africa, taking into consideration two forms of health expenditures (government health expenditure (GHE) and out-of-pocket health expenditure (OOPHE)) and gender labour force participation dichotomy. We employed data of 39 African countries for the period between 2000 and 2018 using Panel Fixed Effects with Driscoll and Kraay standard errors and two-stage System Generalised Method of Moments (GMM). The results revealed that government health expenditure yields an increasing effect on total, female, and male LFP. OOPHE, in most cases, leads to a decline in LFP. The institutional quality was found to be detrimental to LFP. The magnitude of the positive effect of government health expenditure on LFP is reduced by the interaction of institutional quality with government expenditure. In conclusion, we advocate for the improvement in institutional apparatuses across African countries. JEI CODE: E62; H51; J21; O43

Author(s):  
Rusmawati Said ◽  
Abdullahi Sani Morai

The historically lower level of public health expenditure of sub-Saharan African (SSA) countries could be partly explained by the mounting debt burden of this region. This consumes a sizable proportion of their domestic resources to debt servicing and potentially decreases their overall budgetary allocations to various sectors in the economy and health expenditure in particular. Using the Generalized Method of Moments (GMM) approach on a sample of 43 sub-Saharan African countries, we examined the relationship between the public debt burden and health expenditure highlighting the role of institutional quality for the period 2000 – 2014. The empirical result confirms that the relationship between public debt burden and health expenditure in sub-Saharan Africa is negative. Interestingly, however, the marginal effect of the relationship between the public debt burden and health expenditure has shown that such a negative relationship turns out to be positive when the quality of the institutions is at maximum. This suggests that the relationship between the public debt burden and health expenditure in sub-Saharan Africa is a function of institutional quality.  Therefore, to minimize the negative impact of public debt on health expenditure in sub-Saharan Africa, governments should take determine stand to minimize its debt accumulation and intensify efforts toward the improvement of institutional quality in the region comprehensively.


2004 ◽  
Vol 9 (1) ◽  
pp. 1-25
Author(s):  
Imran Ashraf Toor ◽  
Muhammad Sabihuddin Butt

For the provision of better social services, the health sector has been an important part of national strategy for reducing poverty and income disparities among different income groups in Pakistan. The distribution of access to and use of health among households has been a long-standing concern among policy makers. In this study, government health expenditure is treated as a fixed factor that influences household health behaviour, conditional on such factors as household income, education, and family size. The results of the study suggest that government health expenditure is associated with higher use of both preventive and curative health services by children. The results also indicate that increased government expenditure is actually associated with lower use of health services by the children of the poor, although this negative association is generally weak. However, if increased government spending improves health care opportunities for the nonpoor more than for the poor, the total effect of government spending on the health outcomes of the poor could be less even though they have a higher marginal product of health care inputs.


Author(s):  
Jesus Salgado-Vega ◽  
Fatima Y. Salgado-Naime

The authors examine the trajectory of health expenditures in Latin American countries. The authors apply standard fixed effects and dynamic models to explore the factors associated with the growth of total health expenditures as well as its main components namely, government health expenditures and out-of-pocket payments. Their results suggest that, after taking other factors into consideration, health expenditures in general do not grow faster than the Gross National Product (GNP). The authors confirm the existence of fungibility, where external aid for health reduces government health spending and out-of-pocket expenses from domestic sources. The study also finds that government health expenditure and out-of-pocket payments follow the same paths in time but vary for countries at different levels of economic development; the same is true for health expenditure growth.


2021 ◽  
Vol 28 (2) ◽  
pp. 323-363
Author(s):  
Johannes Blum ◽  
Florian Dorn ◽  
Axel Heuer

AbstractWe examine how political institutions influence health expenditure by using a panel of 151 developing and developed countries for the years 2000 to 2015 and four measures of democracy. Our pooled OLS analysis shows that democracies have 20–30% higher government health expenditure relative to GDP than their autocratic counterparts. An instrumental variable approach which exploits the regional diffusion of democracy confirms the positive effect of democracy on government health expenditure. Panel fixed effects and event study models also suggest a positive within-country effect of democratization on government health expenditure within a short period after regime transition. Democratic rule, however, does not turn out to significantly influence private health expenditure compared to autocracies. We conclude that democracies may care more for their citizens and strive to decrease inequalities in the access to health care.


2021 ◽  
Vol 18 (1) ◽  
pp. 15-31
Author(s):  
Folorunsho M. Ajide

Abstract Research purpose: This study investigates the impact of financial inclusion on female labour force participation in Africa. It also complements the existing studies by evaluating how advancement in information and communication technology (ICT) and Trade openness (TO) modulate the relationship between financial inclusion and female economic participation in selected African countries. Design/methodology/approach: The study focuses on twelve African countries while the empirical evidence is based on Fixed Effects, Random Effects and Generalised Least Square estimators (GLS). Data over the period of 2005-2016 are sourced from the World Bank Development database and IMF international Financial Statistics. Findings: The results show that financial inclusion has a non-monotonic relationship with female labour force participation. The study establishes that if the level of financial inclusion can be increased to the range of 33-57 per cent, it would improve the level of women participation in economic activities. The results further show that ICT moderates the nexus between financial inclusion and female economic participation at a threshold level of 38.17 per cent. These findings persist when the TO is used as the moderating factor at a threshold value of 80.90 per cent. The results are robust enough to suggest an alternative proxy for female labour force participation and alternative estimation techniques. Originality/value/practical implications: Ending gender inequality has become one of the priorities in the global development policies in which most African nations domesticate the same for their national planning. There are voices at every corner in Africa demanding the possibility of achieving gender equality in employment, among others. This article is one of the few articles that evaluate whether financial inclusion can be used to accelerate female economic participation in Africa.


2021 ◽  
Vol 49 (1) ◽  
Author(s):  
Yusuff Adebayo Adebisi ◽  
Aishat Alaran ◽  
Abubakar Badmos ◽  
Adeola Oluwaseyi Bamisaiye ◽  
Nzeribe Emmanuella ◽  
...  

Abstract Background The goal of Universal Health Coverage (UHC) is to ensure that everyone is able to obtain the health services they need without suffering financial hardship. UHC remains a mirage if government health expenditure is not improved. Health priority refers to general government health expenditure as a percentage of general government expenditure. It indicates the priority of the government to spend on healthcare from its domestic public resources. Our study aimed to assess health priorities in the Economic Community of West African States (ECOWAS) using the health priority index from the WHO’s Global Health Expenditure Database. Method We extracted and analysed data on health priority in the WHO’s Global Health Expenditure Database across the 15 members of the ECOWAS (Benin, Burkina Faso, Cabo Verde, Cote d'Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo) from 2010 to 2018 to assess how these countries prioritize health. The data are presented using descriptive statistics. Results Our findings revealed that no West African country beats the cutoff of a minimum of 15% health priority index. Ghana (8.43%), Carbo Verde (8.29%), and Burkina Faso (7.60%) were the top three countries with the highest average health priority index, while Guinea (3.05%), Liberia (3.46%), and Guinea-Bissau (3.56%) had the lowest average health priority in the West African region within the period of our analysis (2010 to 2018). Conclusion Our study reiterates the need for West African governments and other relevant stakeholders to prioritize health in their political agenda towards achieving UHC.


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