TITLE:
The Impact of Health Expenditure on the Economic Growth in Sub-Saharan Africa
AUTHORS:
Badamassi Aboubacar, Deyi Xu
KEYWORDS:
Health Expenditure, Economic Growth, GMM, Sub-Saharan Africa
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.3,
April
27,
2017
ABSTRACT: This
paper examined the nexus between health care expenditure and economic growth in
Sub-Saharan Africa over the period 1995-2014. We use the system General Method of Moments
(GMM) technique to estimate the results. The findings reveal the existence of a
positive and a statistically significant relationship between the two variables,
precisely; health expenditure has a significant impact on the economic growth
of the region. Regarding the control variables, while the effect of official
development assistance on economic growth is insignificant, foreign direct
investment, the active population and gross domestic savings appear as key
determinants of economic growth in the region. Additionally, the results show
that health care is a necessity rather than a luxury in Sub-Saharan Africa. It
is therefore necessary to develop effective and efficient health care programs,
increase health expenditure, make an effective use of the young population and
create better environment for foreign direct investment in order to foster
economic growth in Sub-Saharan Africa.