Health Expenditures in Latin America 1995-2010

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.

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

This chapter explores the factors associated with the growth of total health expenditure, in addition to its main components, government health expenditure and out-of-pocket payments. Results suggest that health expenditure in general does not grow faster than gross national product (GNP). No difference is found in health expenditure between tax-based and insurance-based health financing mechanisms. The authors confirm the existence of fungibility, where external aid for health reduces government health spending and out-of-pocket payments from domestic sources. The study also finds that government health expenditure and out-of-pocket payments follow the same paths in time, but are different for countries at different levels of economic development and the same for health expenditure growth. In Latin American countries, the relationship between health expenditure and GNP per capita is positive; there is a quick adjustment in the short run to obtain long-run behavior.


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

This chapter explores the factors associated with the growth of total health expenditure, in addition to its main components, government health expenditure and out-of-pocket payments. Results suggest that health expenditure in general does not grow faster than gross national product (GNP). No difference is found in health expenditure between tax-based and insurance-based health financing mechanisms. The authors confirm the existence of fungibility, where external aid for health reduces government health spending and out-of-pocket payments from domestic sources. The study also finds that government health expenditure and out-of-pocket payments follow the same paths in time, but are different for countries at different levels of economic development and the same for health expenditure growth. In Latin American countries, the relationship between health expenditure and GNP per capita is positive; there is a quick adjustment in the short run to obtain long-run behavior.


2020 ◽  
Vol 5 (1) ◽  
pp. 54-73
Author(s):  
Micheal Kofi Boachie ◽  
Tatjana Põlajeva ◽  
Albert Opoku Frimpong

The issue of whether government health spending improves health outcomes has been a matter of contention over the years. There have been calls for governments to reduce their financing role in the health sector since such funding do not produce better health. This article examines the effect of public (i.e., government) health expenditure on infant mortality, a proxy of health outcomes, in low- and middle-income countries. We use data from the World Bank’s World Development Indicators database and employ fixed effects estimation technique, with three-stage least squares as a robustness check. The data cover the period 1995–2014. We find that public health expenditure improves health outcomes significantly, as it reduces infant mortality. The results further show that rising income and access to safe water are some of the reasons for improved health outcomes in low- and middle-income countries. Based on these results and the expected redistributive impact of government spending, governments in low- and middle-income countries may consider increasing health spending for better healthcare systems and improved health.


2021 ◽  
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


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.


2020 ◽  
Vol 3 (2) ◽  
pp. p57
Author(s):  
Issa Dianda

In Sub-Saharan Africa (SSA), access to essential health care services remains problematic. The financing of health care is mainly provided by private sources, mainly out-of-pocket payments which represent respectively 53.12% and 36.73% of total health expenditure in 2016. As for public health expenditure, essential for ensuring universal health coverage, it represents only about 35% of health expenditure. Thus, the increase in public spending on health from domestically sources proves to be a major challenge for the countries of the region in the prospect of reaching the SDG relating to health by 2030. This paper aims to analyse the determinants of domestic government health spending in SSA by focusing on political factors. We use data from 39 SSA countries covering the period 2010-2016 and panel-corrected standard errors method for empirical investigation. The results show that democracy favours an increase in government health spending. Furthermore, a political competitive environment, the guarantee and the protection of civil liberties and political right, accountability, government effectiveness and political stability are decisive for increasing government health spending. The results also showed that political participation does not affect public health spending. These results indicate that improving political factors is essential to increase public spending in SSA.


2021 ◽  
pp. 089826432110023
Author(s):  
Florencia Borrescio-Higa ◽  
Patricio Valenzuela

Objective: To examine whether the effect of population aging on healthcare expenditures as a share of Gross Domestic Product (GDP) is attenuated in more educated countries. Method: The analysis is based on a dataset of 22 Latin American countries between 1995 and 2013. We estimate panel data models with country and time fixed effects, and control for potential nonlinear effects of population aging on health expenditure. Results: We find population aging increases health expenditure as a share of GDP in economies characterized by low levels of education, but this effect is mitigated in economies with higher levels of education. Results are driven by private health expenditures. Discussion: Results suggest population aging and education have a stronger influence on healthcare expenditures in less developed countries. This finding is important in a context in which the rapid growth of the aging population is likely to lead to significant costs in terms of health expenditures, but less so in more educated societies.


2018 ◽  
Vol 11 (2) ◽  
pp. 149-164
Author(s):  
Joseph David

Abstract This study employs Autoregressive Distributed Lag (ARDL) bounds testing approach to co-integration and Granger causality technique to empirically examines the nature of relationship between infant mortality and public expenditure on health in Nigeria from 1980 – 2016. In addition, the study considers the roles of immunization, private health expenditure and external health resources on infant mortality in Nigeria. Among other things, the empirical results indicate the presence of significant conintegrating (long-run) relationship between infant mortality and government health expenditure (and private health expenditure, immunization and external health resources), coupled with the existence of bi-directional causal relationship between infant mortality and government health expenditure. In addition, the results also demonstrate that, government health expenditure, private health expenditure, immunization, and external health resources significantly influence infant mortality negatively both in the long and short term. Although, private health spending is shown as the major determinant of the reduction of infant mortality rate in Nigeria, due to the size of the coefficient of private health expenditure. In essence, the total overhaul of the Nigerian health sector, so as to improve the efficiency of the sector, as well curb the incidents of fund mismanagement which has plagued the sector overtime, coupled with the intensifying of immunization programs and activities are however recommended.


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.


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.


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