Socio-Economic, Demand and Supply-Driven Determinants of Health Care Expenditures in Sub-Sahara Africa

Abstract

This study examined the real determinants of health care expenditure in Sub-Sahara Africa. Considering the determining factors from socio-economic, demand and supply sides, data for the study were sourced from World Health Organization and World Development indicators published by World Bank. The study employed Westerlund Error-correction Based Panel Cointegration test to examine the relationship between the determining factors of health expenditure and the health expenditure itself. Findings from the study confirmed that there are long-term co-movements between the determining factors of health expenditure and health expenditure itself. Also, the study revealed that all variables from socio-economic, demand and supply sides have significant impacts on health expenditure in both short and long- run. In addition, most variables in the demand and supply sides have negative and significant impacts on health expenditure while all variables from socio-economic side have positive and significant impacts on health expenditure in both short and long-run in the selected Sub-Sahara African countries.

Keywords: Health Expenditure, Socio-economic Side, Demand Side, Supply Side, Panel Unit Root test, Error Correction Based Panel Cointegration.

DOI: 10.7176/RHSS/10-10-07

Publication date:May 31^st 2020