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Does Economic Freedom Influence Major Health Indicators in India? Cross-state Panel Estimation Results

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  • Saleema Razvi
  • Debashis Chakraborty

Abstract

It is widely acknowledged that inadequacies in public sector health systems can only be overcome by substantial structural and institutional reforms. In India, the need for reforms in the health sector has been highlighted and stressed upon in recent period. While there is a growing belief that public and private sectors in health can potentially gain from one another, there is also recognition that, given their respective strengths and weaknesses, neither the public sector nor the private sector alone can operate in the best interest of the health system. The current study attempts to analyse the impact of enabling environments measured by the economic freedom index in 20 Indian states on select healthcare outcomes, through a panel data model. The empirical results confirm that rise in economic freedom lowers maternal mortality and infant mortality, as the resulting conducive environment enables greater private sector participation. However, the crucial role to be played by the public sector is also underlined in no uncertain terms. The obtained results strongly indicate that the health scenario in India can improve only through closer co-ordination between the public and the private sectors.

Suggested Citation

  • Saleema Razvi & Debashis Chakraborty, 2016. "Does Economic Freedom Influence Major Health Indicators in India? Cross-state Panel Estimation Results," Journal of Development Policy and Practice, , vol. 1(2), pages 203-221, July.
    • Handle: RePEc:sae:jodepp:v:1:y:2016:i:2:p:203-221
    DOI: 10.1177/2455133316648052
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    Cited by:

    1. Deepak Kumar Behera & Umakant Dash, 2020. "Is health expenditure effective for achieving healthcare goals? Empirical evidence from South-East Asia Region," Asia-Pacific Journal of Regional Science, Springer, vol. 4(2), pages 593-618, June.
    2. Arvind Kumar Yadav & Susanta Nag & Pabitra Kumar Jena & Kirtti Ranjan Paltasingh, 2021. "Determinants of Antenatal Care Utilisation in India: A Count Data Modelling Approach," Journal of Development Policy and Practice, , vol. 6(2), pages 210-230, July.
    3. Marson, Marta & Migheli, Matteo & Saccone, Donatella, 2022. "Free to Die: Economic Freedoms and Influenza Mortality," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202210, University of Turin.
    4. De Luca, Giacomo Davide & Lin, Xi, 2024. "The role of health and health systems in promoting social capital, political participation and peace: A narrative review," Health Policy, Elsevier, vol. 141(C).
    5. Anand Sharma & Vipin Sharma & Shekhar Tokas, 2022. "Institutional quality and health outcomes: evidence from the EU countries," Economics and Business Letters, Oviedo University Press, vol. 11(2), pages 70-78.
    6. Marson, Marta & Migheli, Matteo & Saccone, Donatella, 2023. "Free to die: Economic freedoms and influenza mortality," Economics & Human Biology, Elsevier, vol. 49(C).

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