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Public health expenditure and economic development: The case of South Africa between 1996 and 2016

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  • Emeka A Ndaguba
  • Anathi Hlotywa
  • Christian Nsiah

Abstract

A nation’s financial commitment to health investment and expenditure has a corresponding effect on its economic growth and development. Understanding the interplay and underlying connection between health expenditure and national development is critical in forecasting the wellbeing of a nation, vis-à-vis health preparedness. In this paper, we explore the impact of public healthcare expenditure on economic development in South Africa between 1996 and 2016. The autoregressive distributed lag model, error-correction model and a time series panel were adopted in analysing this effect. Empirical findings demonstrate a positive relationship between PHE and HDI in South Africa. Further, health investment may increase the income of health workers and provide for better working conditions and facilities to save lives. In addition, the relationship between CPI and economic development is insignificant, however CPI mediates PG.

Suggested Citation

  • Emeka A Ndaguba & Anathi Hlotywa & Christian Nsiah, 2021. "Public health expenditure and economic development: The case of South Africa between 1996 and 2016," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1905932-190, January.
    • Handle: RePEc:taf:oaefxx:v:9:y:2021:i:1:p:1905932
    DOI: 10.1080/23322039.2021.1905932
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    Cited by:

    1. Fredrick Nsambu Kijjambu & Benjamin Musiita & Asaph Kaburura Katarangi, 2024. "Human Capital Development and Unemployment in Uganda: The Keynesian Theory of Unemployment in Perspective," Journal of Economics and Behavioral Studies, AMH International, vol. 16(1), pages 94-108.

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