Does Economic Freedom Influence Major Health Indicators in India? Cross-state Panel Estimation Results

Abstract

It is widely acknowledged that inadequacies in public sector health systems can only be overcome by substantial structural and institutional reforms. In India, the need for reforms in the health sector has been highlighted and stressed upon in recent period. While there is a growing belief that public and private sectors in health can potentially gain from one another, there is also recognition that, given their respective strengths and weaknesses, neither the public sector nor the private sector alone can operate in the best interest of the health system. The current study attempts to analyse the impact of enabling environments measured by the economic freedom index in 20 Indian states on select healthcare outcomes, through a panel data model. The empirical results confirm that rise in economic freedom lowers maternal mortality and infant mortality, as the resulting conducive environment enables greater private sector participation. However, the crucial role to be played by the public sector is also underlined in no uncertain terms. The obtained results strongly indicate that the health scenario in India can improve only through closer co-ordination between the public and the private sectors.

Does economic freedom improve health outcomes in sub-Saharan Africa?

“…These findings are consistent in both the specifications (fixed effects and 2SLS) and confirm the results of previous studies (e.g. Esposto and Zaleski, 1999;Razvi and Chakraborty, 2016;Stroup, 2007). These results imply that sub-Saharan African countries should focus on improving the quality of economic institutions, which may include policies to strengthen the legal system, establish a system of property rights, reduce trade barriers and ease the regulatory burden.…”

“…Esposto and Zaleski, 1999) and panel regression (e.g. Razvi and Chakraborty, 2016). One reason for this is that valid instruments are difficult to find, as shown by Feldmann (2017).…”

“…Several studies have reported favourable effects of economic freedom at the regional level (e.g. Belasen and Hafer, 2012;Razvi and Chakraborty, 2016). Some studies have obtained a positive impact of economic freedom on well-being and happiness (e.g.…”

“…Most importantly, the existing studies use either cross-sectional or panel regression and thus do not account for the possible endogeneity issues (e.g. Esposto and Zaleski, 1999;Gehring, 2013;Razvi and Chakraborty, 2016;Stroup, 2007). To the best of our knowledge, no study has assessed the effect of economic freedom on health outcomes in the case of sub-Saharan Africa.…”

Determinants of Antenatal Care Utilisation in India: A Count Data Modelling Approach

“…It is found that women having bank accounts and mobile phones have made significant ANC visits compared to women with no bank account or mobile phone. Razvi and Chakraborty (2016) have found that economic empowerment significantly enhances healthcare utilisation by households. Most of the explanatory variables significantly affect the rate of ANC utilisation except the place of residence, religion and caste hierarchy.…”