Health Expenditures and Health Outcomes in Africa*

John C. Anyanwu, Andrew E. O. Erhijakpor

African Development Review · 2009 · 269 citations · 93 references

Concepts

TL;DR

The study examines how per capita total and government health expenditures, along with per capita income, affect infant and under‑five mortality in African countries, and discusses the data implications. The authors use econometric analysis of data from 47 African countries between 1999 and 2004 to link health expenditures and income to infant and under‑five mortality. Health expenditures significantly lower infant and under‑five mortality, with elasticity estimates matching prior studies, total and public spending are key contributors, while mortality is higher in sub‑Saharan Africa and lower in North Africa, and factors like HIV prevalence and ethnolinguistic fractionalization raise mortality while physician density and female literacy lower it, highlighting implications for Millennium Development Goals.

Abstract

Abstract : This paper provides econometric evidence linking African countries’ per capita total as well as government health expenditures and per capita income to two health outcomes: infant mortality and under‐five mortality. This relationship is examined using data from 47 African countries between 1999 and 2004. Health expenditures have a statistically significant negative effect on infant and under‐five mortality rates. The magnitude of our elasticity estimates are in consonance to those reported in the literature. For African countries, our results imply that total health expenditures (as well as the public component) are certainly important contributors to health outcomes. In addition, we find that both infant and under‐five mortality are positively and significantly associated with sub‐Saharan Africa. The reverse is true for North Africa. While ethnolinguistic fractionalization and HIV prevalence positively and significantly affect the health outcomes, higher numbers of physicians and female literacy significantly reduce these health outcomes. These results have important implications for attaining the targets envisioned by the Millennium Development Goals. The data implications are also discussed.

References

93