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The Impact of Financial Inclusion on Household Health Expenditures in Africa

Author

Listed:
  • Ofeh M. Edoh

    (University of Dschang, Cameroon)

  • Tii N. Nchofoung

    (University of Dschang, Cameroon)

  • Ofeh E. Anchi

    (University of Bamenda, Cameroon)

Abstract

This study examines the impact of financial inclusion on household health expenditure in 17 African countries. It argues that financial inclusion is an active influencer of individuals’ health demand and that Gross Domestic Product (GDP) per capita and voluntary health insurance schemes tend to be active transmission channels through which financial inclusion affects household health expenditures. The study used an instrumental variable (2SLS) technique for the analysis over a period from 2008 to 2017.Results from the study show that being financially included leads to increase household health expenditures. Suggestions for policy emerging from this study to governments in Africa are on the aspect of fostering financial inclusion to a wider population alongside enhancing the Universal Health Coverage (UHC) plan to ease the burden of out-of-pocket payments on households.

Suggested Citation

  • Ofeh M. Edoh & Tii N. Nchofoung & Ofeh E. Anchi, 2021. "The Impact of Financial Inclusion on Household Health Expenditures in Africa," Working Papers 21/080, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:21/080
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    References listed on IDEAS

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    Cited by:

    1. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    2. Jean‐Claude Kouladoum, 2023. "Technology and control of corruption in Africa," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1163-1180, August.
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2021. "The role of inclusive education in governance for inclusive economic participation: gender evidence from sub-Saharan Africa," Research Africa Network Working Papers 21/097, Research Africa Network (RAN).

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    More about this item

    Keywords

    Financial inclusion; Health expenditure; Out-of-pocket (OOP) payments; 2SLS;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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