Financial Development and Health Outcomes in Sub-Saharan African Countries

Chireshe, Jaison; Ocran, Matthew Kofi

doi:10.1353/jda.2020.0030

Cited by 7 publications

(6 citation statements)

References 19 publications

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“…Also, the findings indicate that bank deposits and accounts positively enhance healthcare in Africa. Bank deposits and bank accounts are indicators of financial penetration and growth in the activity that helps to reduce financial exclusion, corroborating the findings of Immurana et al (2021) and Chireshe (2018). Their significant positive role in enhancing life expectancy is justifiable given that an increase in deposits and the creation of bank accounts increase the amount of money in circulation, which is accessed by households at affordable interest for financing their basic needs, corroborating the findings of Gyasi et al (2019), M. S. Alam et al (2021), and Chireshe (2018).…”

Section: Resultssupporting

confidence: 83%

“…This study suggests that financial inclusion will help solve healthcare difficulties by covering health expenditures through channels that facilitate financial development. Similarly, Chireshe (2018) found that financial development enhances healthcare in sub‐Saharan Africa, specifically by reducing mortality through an increase in healthcare coverage between 1995 and 2014. In the United States, Aguila et al (2016) concluded that financial inclusion helps reduce health disparities and mortality rates through immunisation campaigns.…”

Section: Literature Reviewmentioning

confidence: 99%

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Financial inclusion and healthcare in Africa: Examining the moderating role of education

Wirajing,

Haruna,

Nchofoung

2023

Review Development Economics

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The 2023 Sustainable Development Goal Report reveals that Africa is still struggling in its pursuit to achieve universal healthcare coverage. However, financial risk protection and human capital development could come to the rescue by facilitating the attainment of quality healthcare services. This study examines the effect of financial inclusion on healthcare in Africa, spanning from 2000 to 2021. Healthcare is proxied by life expectancy at birth, the immunisation rate, and the lifetime risk of maternal death. Financial inclusion is approached through access and usage of financial services. After controlling for the problem of potential endogeneity through the system generalised method of moment (GMM), the findings reveal that financial inclusion enhances healthcare in Africa, signifying that financially included individuals have a higher conditional probability of spending more on improving their health relative to the financially excluded individuals. Moreover, the findings indicate that education and technology diffusion are imperative in the quest for enhancing healthcare in Africa. In addition, after testing for sensitivity analysis by adopting different indicators of healthcare, the results remain consistent throughout the study, confirming the role of financial inclusion in enhancing healthcare in Africa. After computing the marginal effects, the findings depict that education and financial inclusion interact to produce positive synergy effects, signifying that the positive role of financial inclusion and education in enhancing healthcare outweighs the negative conditional effect. The results recommend policymakers establish a framework that promotes financial literacy for the enhancement of healthcare in Africa.

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Section: Resultssupporting

confidence: 83%

Section: Literature Reviewmentioning

confidence: 99%

Financial inclusion and healthcare in Africa: Examining the moderating role of education

Wirajing,

Haruna,

Nchofoung

2023

Review Development Economics

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“…It has been observed that in Africa and beyond, there are funding challenges faced by the public healthcare sector that negatively affect public health service delivery. For instance, poor quality healthcare service delivery is attributed to financing challenges (Chireshe & Ocran 2020;Grigoli & Kapsoli 2018;Novak & Bridwell 2019). Despite an observed trend of increased healthcare expenditure over the years (Chu, Kwon & Cowley 2019), healthcare funding is still limited and inadequate (Boachie et al 2018;Islam, Akhter & Islam 2018;Kiross et al 2020).…”

Section: Funding In the Public Healthcare Delivery Sectormentioning

confidence: 99%

An evaluation of funding challenges in the Malawian public healthcare delivery sector

Hanif¹,

Musvoto²

2023

Africa’s Public Service Delivery and Performance Review

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Background: Reliable and adequate healthcare funding is crucial in public healthcare service delivery. However, district hospitals in Malawi, face funding challenges as evidenced by poor service delivery.Aim: This study aimed at investigating funding challenges experienced by public district hospitals of Malawi in the provision of healthcare services and proposing strategies for improved funding.Setting: The research presented in this article evaluates funding challenges in the public healthcare sector in Malawi, a developing country.Method: An exploratory sequential mixed method design was used. Qualitative data were collected through semi-structured interviews with 10 purposively selected individuals and were analysed thematically. Quantitative data were collected using questionnaires from 328 respondents. Quantitative data underwent factor and univariate analysis.Results: The study revealed that government funding is received late and is inadequate; donor funding was declining and earmarked for specific health activities; while income generation capacity of hospitals and Councils is weak. The study suggests that hospitals should introduce fees for service, government should be lobbied for increased funding allocations, and revenue–generating capacity of hospitals and Councils should be enhanced.Conclusion: The study concludes that there is an urgent need for government to prioritise the healthcare delivery sector and increase its funding. Hospitals and Councils should be innovative in order to generate additional funding for operations and the revenue generation capacity of hospitals and Councils should thus, be enhanced.Contribution: The study adds to the healthcare funding debate in developing countries by providing a context–specific analysis of healthcare funding challenges and suggesting improvement strategies.

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“…At the macro‐level, financial development supports improved government fiscal and monetary policy arrangements and tax revenue capabilities which facilitates greater investment in social infrastructure and has a concomitant effect on population health. Evidence suggests that better access to and depth of financial services, such as number of bank branches and ATMs, the size of domestic credit/GDP and broad money, leads to higher health outcomes (Bhatta, 2013; Chireshe & Ocran, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Importantly, recent research demonstrates the positive nexus between financial development 1 and health which has close links with financial inclusion (Chireshe & Ocran, 2020). For instance, a well-developed financial system can lead to improved health outcomes through its impact on public infrastructure, income, education and risk management (Bhatta, 2013;Claessens & Feijen, 2006;Hakeem & Oluitan, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

Does higher financial inclusion lead to better health outcomes? Evidence from developing and transitional economies

Banerjee

Maruta²,

Donato

2022

Econ of Transit and Inst Chang

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This study critically examines the effect of financial inclusion on life expectancy and infant mortality rates, and whether the effect is conditioned by possible threshold effects determined by the degree of income inequality and poverty levels. We draw our conclusions based on 61 developing and transitional economies in the period 2011-2017. Using an aggregate hybrid financial inclusion index, we show that financial inclusion exerts a direct positive effect on health outcomes. Furthermore, the effectiveness of financial inclusion as a policy tool to achieve better health outcomes is higher in societies where poverty and income inequality are more prevalent. These are significant findings from a policy perspective as greater financial inclusion offers the scope to invest in health capital and enhances the capacity for risk management among the most vulnerable populations in the face of health shocks.

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Financial Development and Health Outcomes in Sub-Saharan African Countries

Cited by 7 publications

References 19 publications

Financial inclusion and healthcare in Africa: Examining the moderating role of education

Financial inclusion and healthcare in Africa: Examining the moderating role of education

An evaluation of funding challenges in the Malawian public healthcare delivery sector

Does higher financial inclusion lead to better health outcomes? Evidence from developing and transitional economies

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