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Drivers of healthcare expenditure growth in West Africa: A panel data investigation

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  • Rasaki Stephen Dauda
  • Fiyinfoluwa Adeyinka Balogun

Abstract

Per capita health expenditure in West African countries appears to have assumed a growing trend over the years. This may not be unconnected with the critical role played by health in economic growth, sustainable development and human capital formation. This study analysed drivers of healthcare expenditure in West Africa, using panel data analysis. Random Effects estimating technique was preferred to pooled Ordinary Least Squares and Fixed Effects techniques based on Hausman and Breusch‐Pagan Lagrangian multiplier tests. Data employed were sourced from World Bank's world development indicators. The findings indicated that number of people using at least basic sanitation services, incidence of tuberculosis, malaria incidence, and per capita GDP, significantly increased healthcare expenditure in West Africa within the study period. Infant and under‐five mortality (UFM) rates raised healthcare expenditure but insignificantly in the sub‐region. The study recommends the need to reduce malaria and tuberculosis incidences as well as UFM rate in West Africa through appropriate policy enactment. Such policies should include adequate investment in education, increased per capita income, development of malaria vaccines, maintenance of hygienic environment and free treatment of tuberculosis patients.

Suggested Citation

  • Rasaki Stephen Dauda & Fiyinfoluwa Adeyinka Balogun, 2024. "Drivers of healthcare expenditure growth in West Africa: A panel data investigation," International Journal of Health Planning and Management, Wiley Blackwell, vol. 39(2), pages 461-476, March.
    • Handle: RePEc:bla:ijhplm:v:39:y:2024:i:2:p:461-476
    DOI: 10.1002/hpm.3735
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    References listed on IDEAS

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    1. Sachs,Jeffrey & Schmidt-Traub,Guido & Kroll,Christian & Lafortune,Guillaume & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2020," Cambridge Books, Cambridge University Press, number 9781108994651, November.
    2. Sachs,Jeffrey & Schmidt-Traub,Guido & Kroll,Christian & Lafortune,Guillaume & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2020," Cambridge Books, Cambridge University Press, number 9781108834209, November.
    3. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009098915, November.
    4. Pedro Pita Barros, 1998. "The black box of health care expenditure growth determinants," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 533-544, September.
    5. Sachs,Jeffrey & Kroll,Christian & Lafortune,Guillame & Fuller,Grayson & Woelm,Finn, 2021. "Sustainable Development Report 2021," Cambridge Books, Cambridge University Press, number 9781009102896, May.
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