IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v26y2017i7p844-852.html
   My bibliography  Save this article

Evolving Health Expenditure Landscape of the BRICS Nations and Projections to 2025

Author

Listed:
  • Mihajlo Jakovljevic
  • Elena Potapchik
  • Larisa Popovich
  • Debasis Barik
  • Thomas E. Getzen

Abstract

Global health spending share of low/middle income countries continues its long‐term growth. BRICS nations remain to be major drivers of such change since 1990s. Governmental, private and out‐of‐pocket health expenditures were analyzed based on WHO sources. Medium‐term projections of national health spending to 2025 were provided based on macroeconomic budgetary excess growth model. In terms of per capita spending Russia was highest in 2013. India's health expenditure did not match overall economic growth and fell to slightly less than 4% of GDP. Up to 2025 China will achieve highest excess growth rate of 2% and increase its GDP% spent on health care from 5.4% in 2012 to 6.6% in 2025. Russia's spending will remain highest among BRICS in absolute per capita terms reaching net gain from $1523 PPP in 2012 to $2214 PPP in 2025. In spite of BRICS' diversity, all countries were able to significantly increase their investments in health care. The major setback was bold rise in out‐of‐pocket spending. Most of BRICS' growing share of global medical spending was heavily attributable to the overachievement of People's Republic of China. Such trend is highly likely to continue beyond 2025. Copyright © 2016 John Wiley & Sons, Ltd.

Suggested Citation

  • Mihajlo Jakovljevic & Elena Potapchik & Larisa Popovich & Debasis Barik & Thomas E. Getzen, 2017. "Evolving Health Expenditure Landscape of the BRICS Nations and Projections to 2025," Health Economics, John Wiley & Sons, Ltd., vol. 26(7), pages 844-852, July.
    • Handle: RePEc:wly:hlthec:v:26:y:2017:i:7:p:844-852
    DOI: 10.1002/hec.3406
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.3406
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.3406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alok Bhargava & Dean T. Jamison & Lawrence J. Lau & Christopher J. L. Murray, 2006. "Modeling the effects of health on economic growth," World Scientific Book Chapters, in: Econometrics, Statistics And Computational Approaches In Food And Health Sciences, chapter 20, pages 269-286, World Scientific Publishing Co. Pte. Ltd..
    2. Bärnighausen, Till & Sauerborn, Rainer, 2002. "One hundred and eighteen years of the German health insurance system: are there any lessons for middle- and low-income countries?," Social Science & Medicine, Elsevier, vol. 54(10), pages 1559-1587, May.
    3. McIntyre, Diane & Thiede, Michael & Dahlgren, Göran & Whitehead, Margaret, 2006. "What are the economic consequences for households of illness and of paying for health care in low- and middle-income country contexts?," Social Science & Medicine, Elsevier, vol. 62(4), pages 858-865, February.
    4. Ronald Lee, 2003. "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 167-190, Fall.
    5. Mihajlo Jakovljevic, 2013. "Resource allocation strategies in Southeastern European health policy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 153-159, April.
    6. Bloom, Gerald & McIntyre, Diane, 1998. "Towards equity in health in an unequal society," Social Science & Medicine, Elsevier, vol. 47(10), pages 1529-1538, November.
    7. Luca Lorenzoni & David Morgan & Yuki Murakami & Chris James, 2015. "Public Expenditure Projections for Health and Long-Term Care for China Until 2030," OECD Health Working Papers 84, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Osmani, Ahmad Reshad & Okunade, Albert, 2021. "A Double-Hurdle Model of Healthcare Expenditures across Income Quintiles and Family Size: New Insights from a household Survey," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(6), pages 246-246.
    2. Tao Liu & Benjamin Quasinowski & André Soares, 2020. "The Emulation and Adaptation of a Global Model of Clinical Practice Guidelines on Chronic Heart Failure in BRICS Countries: A Comparative Study," IJERPH, MDPI, vol. 17(5), pages 1-21, March.
    3. Tomoki Fujii, 2018. "Sources of health financing and health outcomes: A panel data analysis," Health Economics, John Wiley & Sons, Ltd., vol. 27(12), pages 1996-2015, December.
    4. Mihajlo Jakovljevic & Arcadio A. Cerda & Yansui Liu & Leidy García & Yuriy Timofeyev & Kristijan Krstic & John Fontanesi, 2021. "Sustainability Challenge of Eastern Europe—Historical Legacy, Belt and Road Initiative, Population Aging and Migration," Sustainability, MDPI, vol. 13(19), pages 1-18, October.
    5. Deepak Kumar Behera & Dil B. Rahut & Herosh T. Haridas & Shaik Husna Tasneem, 2024. "Public Versus Private Health Financing Transition in Low- and Middle-Income Countries: Exploring the Crowding-Out Effects," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 957-986, August.
    6. Mihajlo Jakovljevic & Paula Odete Fernandes & João Paulo Teixeira & Nemanja Rancic & Yuriy Timofeyev & Vladimir Reshetnikov, 2019. "Underlying Differences in Health Spending Within the World Health Organisation Europe Region—Comparing EU15, EU Post-2004, CIS, EU Candidate, and CARINFONET Countries," IJERPH, MDPI, vol. 16(17), pages 1-15, August.
    7. Vladimir Reshetnikov & Evgeny Arsentyev & Sergey Bolevich & Yuriy Timofeyev & Mihajlo Jakovljević, 2019. "Analysis of the Financing of Russian Health Care over the Past 100 Years," IJERPH, MDPI, vol. 16(10), pages 1-5, May.
    8. Viktoriia Vovk & Lyudmila Beztelesna & Olha Pliashko, 2021. "Identification of Factors for the Development of Medical Tourism in the World," IJERPH, MDPI, vol. 18(21), pages 1-17, October.
    9. Tingying Chen & Haitian Lu & Rong Chen & Lina Wu, 2021. "The Impact of Marketization on Sustainable Economic Growth—Evidence from West China," Sustainability, MDPI, vol. 13(7), pages 1-24, March.
    10. Macinko, James & Seixas, Brayan V. & de Oliveira, Cesar & Lima-Costa, Maria Fernanda, 2022. "Private health insurance, healthcare spending and utilization among older adults: Results from the Brazilian Longitudinal Study of Aging," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    11. Arvind Pandey & Aseem Prakash & Rajeev Agur & Ganesh Maruvada, 2021. "Determinants of COVID-19 pandemic in India: an exploratory study of Indian states and districts," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(2), pages 248-279, September.
    12. Juan Du & Shuhong Cui & Hong Gao, 2020. "Assessing Productivity Development of Public Hospitals: A Case Study of Shanghai, China," IJERPH, MDPI, vol. 17(18), pages 1-9, September.
    13. Yewande Kofoworola Ogundeji & Babatunde Akomolafe & Kelechi Ohiri & Nuhu Natie Butawa, 2019. "Factors influencing willingness and ability to pay for social health insurance in Nigeria," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-10, August.
    14. Stefan Fetzer & Stefan Moog, 2021. "Indicators for Measuring Intergenerational Fairness of Social Security Systems—The Case of the German Social Health Insurance," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    15. Onur Dogan & Gizem Kaya & Aycan Kaya & Hidayet Beyhan, 2019. "Catastrophic Household Expenditure for Healthcare in Turkey: Clustering Analysis of Categorical Data," Data, MDPI, vol. 4(3), pages 1-10, July.
    16. Ren, Bo & Li, Huajiao & Shi, Jianglan & Liu, Yanxin & Qi, Yajie, 2022. "Identifying the key sectors and paths of the embodied energy in BRICS nations: A weighted multilayer network approach," Energy, Elsevier, vol. 239(PB).
    17. Xueli Chen & Vivian Valdmanis & Tuotuo Yu, 2020. "Productivity Growth in Chinese Medical Institutions during 2009–2018," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    18. Priya Gauttam & Nitesh Patel & Bawa Singh & Jaspal Kaur & Vijay Kumar Chattu & Mihajlo Jakovljevic, 2021. "Public Health Policy of India and COVID-19: Diagnosis and Prognosis of the Combating Response," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    19. Pragyan Monalisa Sahoo & Himanshu Sekhar Rout & Mihajlo Jakovljevic, 2023. "Dynamics of Health Financing among the BRICS: A Literature Review," Sustainability, MDPI, vol. 15(16), pages 1-21, August.
    20. Kristijan Krstic & Ronny Westerman & Vijay Kumar Chattu & Natalia V. Ekkert & Mihajlo Jakovljevic, 2020. "Corona-Triggered Global Macroeconomic Crisis of the Early 2020s," IJERPH, MDPI, vol. 17(24), pages 1-9, December.
    21. Rudi Rocha & Isabela Furtado & Paula Spinola, 2021. "Financing needs, spending projection, and the future of health in Brazil," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 1082-1094, May.
    22. Chak Hung Jack Cheng & Nopphol Witvorapong, 2021. "Health care policy uncertainty, real health expenditures and health care inflation in the USA," Empirical Economics, Springer, vol. 60(4), pages 2083-2103, April.
    23. Daniel Badulescu & Ramona Simut & Alina Badulescu & Andrei-Vlad Badulescu, 2019. "The Relative Effects of Economic Growth, Environmental Pollution and Non-Communicable Diseases on Health Expenditures in European Union Countries," IJERPH, MDPI, vol. 16(24), pages 1-19, December.
    24. Tissa Wijeratne & Carmela Sales & Rohit Menon & Leila Karimi & Mihajlo Jakovljevic, 2021. "Highlighting the Role of Universally Available and Innate Immune Cell Counts in Acute Ischemic Stroke: A Scoping Review," Sustainability, MDPI, vol. 13(7), pages 1-10, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fumagalli, Elena & Pinna Pintor, M & Suhrcke, Marc, 2024. "The impact of health on economic growth: A narrative literature review," Health Policy, Elsevier, vol. 143(C).
    2. Mihajlo Jakovljevic & Paula Odete Fernandes & João Paulo Teixeira & Nemanja Rancic & Yuriy Timofeyev & Vladimir Reshetnikov, 2019. "Underlying Differences in Health Spending Within the World Health Organisation Europe Region—Comparing EU15, EU Post-2004, CIS, EU Candidate, and CARINFONET Countries," IJERPH, MDPI, vol. 16(17), pages 1-15, August.
    3. Ghosh, sudeshna, 2017. "Education Attainment Forecasting and Economic Inequality United States," MPRA Paper 89712, University Library of Munich, Germany.
    4. Rosa Aísa & Fernando Pueyo, 2004. "Endogenous longevity, health and economic growth: a slow growth for a longer life?," Economics Bulletin, AccessEcon, vol. 9(3), pages 1-10.
    5. Akram, Naeem, 2009. "Short run and long run dynamics of impact of health status on economic growth Evidence from Pakistan," MPRA Paper 15454, University Library of Munich, Germany.
    6. de Menil, Victoria & Knapp, Martin & McDaid, David & Njenga, Frank Gitau, 2014. "Service use, charge, and access to mental healthcare in a private Kenyan inpatient setting: the effects of insurance," LSE Research Online Documents on Economics 56444, London School of Economics and Political Science, LSE Library.
    7. Mihajlo Jakovljevic & Mirjana Jovanovic & Nemanja Rancic & Benjamin Vyssoki & Natasa Djordjevic, 2014. "LAT Software Induced Savings on Medical Costs of Alcohol Addicts' Care - Results from a Matched-Pairs Case-Control Study," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-8, November.
    8. Karlsson, Martin & Nilsson, Therese & Pichler, Stefan, 2014. "The impact of the 1918 Spanish flu epidemic on economic performance in Sweden," Journal of Health Economics, Elsevier, vol. 36(C), pages 1-19.
    9. McNamara, Paul E. & Ulimwengu, John M. & Leonard, Kenneth L., 2010. "Do health investments improve agricultural productivity? Lessons from agricultural household and health research," IFPRI discussion papers 1012, International Food Policy Research Institute (IFPRI).
    10. Bourguignon, Francois, 2005. "The Effect of Economic Growth on Social Structures," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 27, pages 1701-1747, Elsevier.
    11. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    12. Zsofia Barany & Nicolas Coeurdacier & Stéphane Guibaud, 2015. "Fertility, Longevity and International Capital Flows," Working Papers hal-01164462, HAL.
    13. David Lam, 2011. "How the World Survived the Population Bomb: Lessons From 50 Years of Extraordinary Demographic History," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1231-1262, November.
    14. Pablo Gottret & George Schieber, 2006. "Health Financing Revisited : A Practitioner's Guide," World Bank Publications - Books, The World Bank Group, number 7094.
    15. Astrida Miceikienė & Laima Skauronė & Ričardas Krikštolaitis, 2021. "Assessment of the Financial Autonomy of Rural Municipalities," Economies, MDPI, vol. 9(3), pages 1-21, July.
    16. Costantini, Valeria & Monni, Salvatore, 2008. "Environment, human development and economic growth," Ecological Economics, Elsevier, vol. 64(4), pages 867-880, February.
    17. Xiaowei Yang & Jianmin Gao & Zhongliang Zhou & Jue Yan & Sha Lai & Yongjian Xu & Gang Chen, 2016. "Assessing the Effects of the New Cooperative Medical Scheme on Alleviating the Health Payment-Induced Poverty in Shaanxi Province, China," PLOS ONE, Public Library of Science, vol. 11(7), pages 1-12, July.
    18. Mónica L. Azevedo & Óscar Afonso & Sandra T. Silva, 2017. "Endogenous Growth and Intellectual Property Rights: A North–South Modelling Proposal with Population Ageing," Australian Economic Papers, Wiley Blackwell, vol. 56(1), pages 72-94, March.
    19. Obermann, Konrad & Jowett, Matthew R. & Alcantara, Maria Ofelia O. & Banzon, Eduardo P. & Bodart, Claude, 2006. "Social health insurance in a developing country: The case of the Philippines," Social Science & Medicine, Elsevier, vol. 62(12), pages 3177-3185, June.
    20. Bloom, David E. & Canning, David & Kotschy, Rainer & Prettner, Klaus & Schünemann, Johannes, 2024. "Health and economic growth: Reconciling the micro and macro evidence," World Development, Elsevier, vol. 178(C).

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:26:y:2017:i:7:p:844-852. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.