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Financial development and health care expenditure in Sub Saharan Africa Countries

Author

Listed:
  • Jaison Chireshe
  • Matthew K. Ocran
  • Francesco Tajani

Abstract

The study aimed to examine the relationship between financial development and health care expenditure in 46 Sub Saharan Africa (SSA) countries. The paper argues that health care expenditure is a key transmission mechanism through which financial development influences better health outcomes. The study used random and fixed effects as well as instrumental variable estimation methods using data from 1995 to 2014. The results showed that financial development leads to increased health care expenditure. In terms of policy implications, the findings underscore the need to foster financial development in SSA economies to assist with domestic resource mobilisation to finance health care expenditure.

Suggested Citation

  • Jaison Chireshe & Matthew K. Ocran & Francesco Tajani, 2020. "Financial development and health care expenditure in Sub Saharan Africa Countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1771878-177, January.
    • Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1771878
    DOI: 10.1080/23322039.2020.1771878
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    Citations

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    Cited by:

    1. Uweis Abdulahi Ali Bare & Yasmin Bani & Normaz Wana Ismail & Anitha Rosland, 2021. "Remittances And Health Outcomes In Sub-Saharan African Countries: Understanding The Role Of Financial Development And Institutional Quality," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(229), pages 119-144, April – J.
    2. Alssadek, Marwan & Benhin, James, 2023. "Natural resource curse: A literature survey and comparative assessment of regional groupings of oil-rich countries," Resources Policy, Elsevier, vol. 84(C).
    3. Dhahri, Sabrine & Omri, Anis & Mirza, Nawazish, 2024. "Information technology and financial development for achieving sustainable development goals," Research in International Business and Finance, Elsevier, vol. 67(PA).
    4. Ofeh M. Edoh & Tii N. Nchofoung & Ofeh E. Anchi, 2021. "The Impact of Financial Inclusion on Household Health Expenditures in Africa," Research Africa Network Working Papers 21/080, Research Africa Network (RAN).
    5. Hilaire Gbodja Houeninvo, 2022. "Effects of health expenditures on infant and child mortality rates: A dynamic panel data analysis of 37 African countries," African Development Review, African Development Bank, vol. 34(2), pages 255-267, June.
    6. repec:zib:zjhcdc:v:2:y:2022:i:1:p:20-25 is not listed on IDEAS
    7. Donou-Adonsou, Ficawoyi, 2022. "The effects of health conditions on financial sector development," Economic Modelling, Elsevier, vol. 114(C).

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