Effects of the Quality of Governance on Domestic Government Health Spending in West Africa Economic and Monetary Union Countries

Abstract

Government health spending is an important source of sustainable health funding in order to attain the health-related Sustainable Development Goals (SDGs). In low and middle-income countries, domestic government per capita spending on health needed to ensure universal coverage with the most essential health services is estimated at $112 according to Stenberg et al. (2017). In 2015, in West Africa Economic and Monetary Union (WAEMU), average domestic government spending on health per capita was $26 (about one quarter of all health spending), far short of the $112 target. The purpose of this paper is to analyze the determinants of domestic government health spending with emphasis on the quality of governance. We used panel data from the eight WAEMU member states covering the period 2000-2015 and the generalized least squares method for empirical investigation. The results show that an improvement in the quality of governance increases domestic government health spending. The study suggests the policy-makers of the WAEMU member state to improve the quality of governance in order to increase domestic government health spending and allow people to access essential health services and enjoy a better state of health.

ICT and the provision of social services in low-income countries: the moderating role of institutional quality

“…The chosen period is limited by the data availability of the ICT and institutional quality indices. Nevertheless, the selected variables are consistent with the literature (Jibir and Aluthge, 2019;Okafor and Eiya, 2011;Azolibe, 2020;Dianda and Ouedraogo, 2021) and economic theory. The primary data source for the analysis is the World Bank's (2022a) World Development Indicators.…”

“…Simultaneously, in line with a growing literature that investigates the effect of institutional quality on health and education as well as on government spending (Duerrenberger and Warning, 2018; Hsiao et al , 2019; Swaleheen et al , 2018; Saengchai et al , 2020; De Luca et al , 2021; Dianda and Ouedraogo, 2021), the study has revealed that institutional quality has a significant positive effect on the provision of social services in the short and long run for low-income countries. Thus, the second research hypothesis of this study stands to prove that institutional quality has a significant positive effect on institutional quality, which validates the findings of Saengchai et al (2020) based on Asian countries from 1990 to 2018, which showed that civil liberty, regulatory quality and voice and accountability improve the quality of education, as well as Dianda and Ouedraogo (2021) based on WAEMU countries from 2000 to 2015, which showed that institutional quality has positive effects on the accumulation of health capital. Thus, the current study’s findings imply that institutional quality fosters the provision of social services in low-income countries.…”

“…Duerrenberger and Warning (2018) revealed that corruption negatively affects the educational system in 88 developing countries by lowering school enrolment in these countries. Also, Dianda and Ouedraogo (2021) showed that improving institutional quality is a crucial requirement for maximizing returns from government health spending. Hence, the literature submits that rising institutional quality may foster the provision of social services.…”

Pattern of Public Healthcare Expenditure and Preparedness for COVID-19 in India: An Interstate Analysis

“…Using data from 19 OECD countries, Gerdtham et al (1992) identified the share of public financing to total health expenditure, per capita income, urbanisation as positive and significant determinants of health expenditure. The income elasticity of demand for healthcare being found to be less than unity implying health is a necessary good in the various empirical works (Baltagi & Moscone, 2010; Behera et al, 2020; Dianda & Sirpe, 2020; Font & Novell, 2006; Murthy & Okunade, 2009; Sen, 2005), while another group of scholars claimed health as luxury good, as its responsiveness is sensitive to income change (Gbesemete & Gerdtham, 1992; Hitris & Posnett, 1992; Kiymaz et al, 2006; Newhouse, 1977). Souliotis and Lionis (2005) stated, among the goals of social and economic development, the public health sector will be low priority area if the income elasticity of health expenditure is less than one.…”

“…,Dianda and Sirpe (2020),Behera et al (2020),Farag et al (2012),Sen (2005), Chakroun (2010),Gerdtham et al (1998),Baltagi and Moscone (2010), Fernandez et al (2014).…”