Effects of Economic and Population Factors on Health Expenditures: Special Case of Pakistan

Author(s):  
Tanzeela Yaqoob ◽  
Rahat Bibi ◽  
Junaid S. Siddiqui

<p>This paper aims to explore the factors affecting the health care expenditures of Pakistan by employing the Multivariate techniques for the annual data series from 1960 to 2010 .The variables we considered are Gross Domestic Product (GDP) as an economic indicator, Population of age 65 and above (P≥65), Population of age 0 to 14 (P(0-14)), Life expectancy at Birth (LE), Crude Birth rate (CBR) and population growth rate (GR) as population indicator and Total Health Expenditure (THE) as an influencing factor. Multiple regression considering Total Health Expenditure (THE) is applied as dependent on the variables mentioned above. Since Variance Inflation Factor (VIF) for all independent variables are very high, the smallest VIF is around 11 goes up to 65. The results obtained by Principal components reveal the effect of population structure and the age factor effect oppositely on Total Health Expenditures (THE). Factor Analysis suggests that the behavior of Health Expenditures is common with Gross Domestic Product (GDP), population of age 65 and above (P≥65) and life expectancy at Birth (LE) in Pakistan while population of age 0 to 14 (P (0-14)), population growth rate (GR) and Crude Birth rate (CBR) are moving in opposite direction i.e. as GDP, P≥65 and LE of Pakistan increases P (0-14), GR and CBR will decreases.</p>

2017 ◽  
Vol 1 (2) ◽  
pp. AU7-AU12 ◽  
Author(s):  
Sojib Bin Zaman ◽  
Naznin Hossain ◽  
Varshil Mehta ◽  
Shuchita Sharmin ◽  
Shakeel Ahmed Ibne Mahmood

Introduction: Gradual  total health expenditure (THE) has become a major concern. It is not only the increased THE, but also its unequal growth in  overall economy, found among the developing countries. If increased life expectancy is considered as a leverage for an individual’s investment in health services, it can be  expected that as the life expectancy increases, tendency of health care investment will also experience a boost up. Objective: The aim of the present study was to explore and identify the association of healthcare expenditure with the life expectancy and Gross Domestic Product (GDP) in developing countries, especially that of Bangladesh. Methodology: Data were retrospectively collected from “Health Bulletin 2011” and “Sample Vital Registration System 2010” of Bangladesh considering the fiscal year 1996 to fiscal year 2006. Using STATA, multivariable logistic regression was performed to find out the association of total health expenditure with GDP and life expectancy. Results: A direct relationship between GDP and total health expenditure was found through analysing the data. At the individual level, income  had a direct influence on health spending. However, there was no significant relationship between total health expenditure with increased life expectancy. Conclusion: The present study did not find any association between life expectancy and total health expenditure. However, our analysis found out that total health expenditure is more sensitive to gross domestic product rather than life expectancy.


2021 ◽  
Vol 13 (8) ◽  
pp. 4467
Author(s):  
Alessandro Danovi ◽  
Stefano Olgiati ◽  
Alessandro D’Amico

This work focuses on the economic implications of the relationship between life expectancy, the number of years lost to disability and per-capita total health expenditure. The primary goal of the paper is to identify and plot the correlation between healthcare expenditure and the global increase in life expectancy, in order to assess if, and how, the way longer average lifespans are achieved affects healthcare sustainability. Datasets regarding the United States, the European Union and the five largest emerging healthcare systems (i.e., Brazil, the Russian Federation, India, China and South Africa) were obtained from the Institute for Health Metrics and Evaluation and the WHO Health Expenditure Statistics Repository. All analysis was performed on 2017 data. The results of the analysis showed the number of years lost to disability to be a linear function of life expectancy at birth (male R2 = 0.61; female R2 = 0.47), and per-capita total health expenditure to be an exponential function of the number of years lost to disability (male R2 = 0.60; female R2 = 0.65). This implies that improving life expectancy via social policies bears negative consequences in terms of healthcare sustainability, unless the number of years lost to disability is reduced too. Further studies should narrow the sample of countries and causes of years lost due to disability, to better inform future policy efforts.


Economies ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 58 ◽  
Author(s):  
Micheal Kofi Boachie ◽  
K. Ramu ◽  
Tatjana Põlajeva

The effect of government spending on population’s health has received attention over the past decades. This study re-examines the link between government health expenditures and health outcomes to establish whether government intervention in the health sector improves outcomes. The study uses annual data for the period 1980–2014 on Ghana. The ordinary least squares (OLS) and the two-stage least squares (2SLS) estimators are employed for analyses; the regression estimates are then used to conduct cost-effectiveness analysis. The results show that, aside from income, public health expenditure contributed to the improvements in health outcomes in Ghana for the period. We find that, overall, increasing public health expenditure by 10% averts 0.102–4.4 infant and under-five deaths in every 1000 live births while increasing life expectancy at birth by 0.77–47 days in a year. For each health outcome indicator, the effect of income dominates that of public spending. The cost per childhood mortality averted ranged from US$0.20 to US$16, whereas the cost per extra life year gained ranged from US$7 to US$593.33 (2005 US$) during the period. Although the health effect of income outweighs that of public health spending, high (and rising) income inequality makes government intervention necessary. In this respect, development policy should consider raising health sector investment inter alia to improve health conditions.


2020 ◽  
Vol 12 (2) ◽  
pp. 87-102
Author(s):  
Panan Danladi Gwaison ◽  
Livinus Nkuri Maimako

Health is a very important aspect of an individual’s wellbeing, and since individuals make a nation, therefore, healthcare expenditure could be regarded as one of the necessary conditions to achieving a sustainable long-term economic development. This study examined the effects of government health expenditures on the performance of health Sector in Nigeria. The study employed expo facto research design. The annual time series data from 1979 to 2017 was used in this study from Statistical Bulletin of the Central Bank of Nigeria and World Development Indicators, 2018. The pre estimation test like the descriptive statistics, Augmented Dickey-Fuller (ADF) unit root test Johensen cointegration test and Error correction model test. The OLS estimation technique was used to determine the coefficient of the variables and test the four hypothesis. The results indicated that government total health expenditures, capital health expenditure and recurrent health expenditures are positively related to the performance of health sector proxy by life expectancy rate and statistically insignificant. However capital health expenditure was statistically significant to life expectancy. The study recommends that more emphasis should be placed on the capital expenditures on health as this will facilitate rapid development of the sector and adequate Machinery should be put in place by all sectors of government to arrest corruption and penalize those who divert and embezzle public health fund among other recommendations were made.


2016 ◽  
Vol 9 (5) ◽  
pp. 105 ◽  
Author(s):  
Fatin Aminah Hassan ◽  
Nobuaki Minato ◽  
Shuichi Ishida ◽  
Norashidah Mohamed Nor

<p>Despite remarkable improvements in health over the past 50 years, there still remain a great number of health challenges around the world. This study examined the relationship between life expectancy rate (as a proxy for health status) with health expenditure, gross domestic product, education index, improved water coverage, and improved sanitation facilities in 108 selected developing countries using annual panel data within the period of 2006–2010. The empirical results from using the panel data approach showed a positive relationship between life expectancy rate and all of those explanatory variables. The relationship between life expectancy with education index and gross domestic product were significant at 1% and 5% significance levels, respectively. Furthermore, the causality finding showed that there is no short-run causality between life expectancy and its determinants. There is a unidirectional causality running from the independent variables of health expenditure, education index, improved water, and improved sanitation to life expectancy at birth. On the other hand, bidirectional causality exists between life expectancy and income in the long-run by employing VECM test.  These independent variables can be considered as important determinants for investment in health status in the long-run. This study could be used as a guideline and may be significant for future researchers and policy makers who aim to improve the life expectancy in developing countries.</p>


2021 ◽  
Vol 6 (2) ◽  
pp. 280
Author(s):  
Ayu Sapitri

This study aims to analyze and determine the effect of population factors on economic growth in the Province of the Bangka Belitung Islands. The analysis method used is panel data regression. The type of data is quantitative data in the form of ADHK GRDP data by Regency/City, population growth rate, labor force participation rate, average length of schooling and life expectancy from 2010-2019. The data source is secondary obtained from the Central Bureau of Statistics of the Bangka Belitung Islands Province. The results showed that the population growth rate had a negative and significant effect on economic growth while the labor force participation rate had a positive and insignificant effect on economic growth, the average length of schooling had a positive and significant effect on economic growth and life expectancy had a positive and significant effect on growth. the economy of the Bangka Belitung Islands Province. Simultaneously the population growth rate, labor force participation rate, average length of schooling and life expectancy have a positive and significant impact on economic growth in the Province of the Bangka Belitung Islands.Keywords: Economic Growth, Population Growth Rate, Labor Force Participation Rate, Average Length of Schooling, and Life Expectancy.JEL :  O40, J11, J21, P36


Author(s):  
Luis Currais

This paper firstly deals with the evolution of the literature on fertility and mortality growth rates and secondly discusses the extent to which both fertility and mortality affect the population growth rate as an endogenous variable. We develop an economic growth model using an infinite horizon setup in which economic development and health status influence the population growth rate. Mortality depends on health expenditure and fertility is endogenously determined. Each generation of family is linked altruistically and adults within each household take into account the welfare and resources of their actual and future descendants. The current generation maximizes utility and incorporates a budget constraint over an infinite horizon. Their decisions determine not also the evolution of the population growth rate but even the evolution of the per capita income.


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