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Impact of Health Expenditure on Achieving the Health-related MDGs

Author

Listed:
  • Clovis Freire

    (Macroeconomic Policy and Financing for Development Division, ESCAP)

  • Nobuko Kajiura

    (Macroeconomic Policy and Financing for Development Division, ESCAP)

Abstract

This paper analyses the effect of public and private health expenditures on the achievement of health-related MDGs. It finds that three quarters of the variation of health-related MDG indicators can be explained by public and private health expenditure per capita when controlling for levels of income and demographic factors such as age dependency ratio, urbanization and population density. In addition, the analysis finds that marginal gain in health performance is higher for countries with low per capita public health expenditures. The paper also estimates country’s potential for increasing health expenditure and suggests that some of the countries that are behind in their progress towards the achievement of the MDGs have the potential to complement the shortfall through increasing their public health expenditure to levels that are compatible with their per capita income and demographic structure.

Suggested Citation

  • Clovis Freire & Nobuko Kajiura, 2011. "Impact of Health Expenditure on Achieving the Health-related MDGs," MPDD Working Paper Series WP/11/19, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    • Handle: RePEc:unt:wpmpdd:wp/11/19
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    File URL: http://www.unescap.org/pdd/publications/workingpaper/wp_11_19.pdf
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    References listed on IDEAS

    as
    1. Mr. Emanuele Baldacci & Mr. Larry Q Cui & Mr. Benedict J. Clements & Mr. Sanjeev Gupta, 2004. "Social Spending, Human Capital, and Growth in Developing Countries: Implications for Achieving the MDGs," IMF Working Papers 2004/217, International Monetary Fund.
    2. Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2002. "Public spending and outcomes : does governance matter?," Policy Research Working Paper Series 2840, The World Bank.
    3. Gupta, Sanjeev & Verhoeven, Marijn & Tiongson, Erwin R., 2002. "The effectiveness of government spending on education and health care in developing and transition economies," European Journal of Political Economy, Elsevier, vol. 18(4), pages 717-737, November.
    4. McGuire, James W., 2006. "Basic health care provision and under-5 mortality: A Cross-National study of developing Countries," World Development, Elsevier, vol. 34(3), pages 405-425, March.
    5. Mr. Sanjeev Gupta & Alejandro Hajdenberg & Mr. Javier Arze del Granado, 2010. "Is Social Spending Procyclical?," IMF Working Papers 2010/234, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mohammad Javad Razmi & Ezatollah Abbasian & Sahar Mohammadi, 2012. "Investigating the Effect of Government Health Expenditure on HDI in Iran," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(5), pages 1-8, October.
    2. Akinlo, Anthony E. & Sulola, Abiola O., 2019. "Health care expenditure and infant mortality in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 168-178.
    3. Akinlo, Anthony E. & Odusanya, Ibrahim A., 2016. "Effects of Food Prices on Under-five and Infant Mortality Rates in Sub-Saharan Africa," African Journal of Economic Review, African Journal of Economic Review, vol. 4(1), January.

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    More about this item

    Keywords

    MDGs; public health expenditure; fiscal policy;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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