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Divergence of healthcare expenditure in sub-Saharan Africa
Department of Accounting, Finance and Economics, School of Business, Management and Finance, University of Technology, Mauritius, La Tour Koenig, Pointe-auxSables, Mauritius; Centre for Competition, Regulation and Economic Development, University of Johannesburg, Johannesburg, South Africa.ORCID iD: 0000-0001-9648-9194
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Social Sciences.
2023 (English)In: Studies in Economics and Econometrics, ISSN 0379-6205, Vol. 47, no 1, p. 75-105Article in journal (Refereed) Published
Abstract [en]

The study examines the convergence patterns of real healthcare expenditure per capita (RHEPC) for 43 countries of sub-Saharan African (SSA) from the period 2000 and 2017. Conventional absolute and conditional β-convergence models are first applied. Several factors such as income, democracy, urbanisation and ageing population are found to significantly affect relative RHEPC (RRHEPC) within the conditional β-convergence model. The speed of convergence of RRHEPC is higher for the conditional β-convergence model than the absolute β-convergence one. In general, β-convergence and σ-divergence are detected while no support for the stochastic convergence hypothesis is uncovered. These neoclassical models impose restrictive assumptions that countries follow the same growth path. As such the dynamic distribution approach proposed by Quah is applied to analyse the dynamics of RRHEPC. This is followed by the club convergence test as proposed by Phillips and Sul which allows individual countries to follow distinctive growth paths. Both convergence tests point towards the existence of three clubs. In sum, we find strong evidence of divergence of RHEPC among the 43 SSA countries. Policy implementations based on model results are discussed while several aspects of policy reforms in the healthcare sector within the African continent are highlighted.

Place, publisher, year, edition, pages
Taylor & Francis, 2023. Vol. 47, no 1, p. 75-105
Keywords [en]
Convergence, healthcare expenditure, SSA
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-97048DOI: 10.1080/03796205.2023.2185664Scopus ID: 2-s2.0-85153092880OAI: oai:DiVA.org:ltu-97048DiVA, id: diva2:1756090
Note

Godkänd;2023;Nivå 0;2023-07-19 (sofila);

Available from: 2023-05-10 Created: 2023-05-10 Last updated: 2023-07-19Bibliographically approved

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Jaunky, Vishal Chandr

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