Abstract
Purpose: This study examines the impacts of health expenditures on infant mortality. Design/methodology/approach: This study is based on a comprehensive panel data of 100 countries (31 developed and 69 developing countries) for 18 years (2000-2017) and, based on the Hausman Test, applies fixed effect analyses. Findings: Not only a negative relationship between health expenditures and the infant mortality rate but its diminishing returns are found. This pattern turns out to be stronger in developing countries, particularly in Sub-Saharan Africa. It appears that a country can easily target the most needed class or region to effectively minimize infant mortality given a limited amount of health expenditure, but that same amount may not suffice in reaching defined goals. Research limitations/implications: This implies that the rising amounts of health expenditure would be needed if countries seek to decrease infant mortality at the same rate as they had previously done. To expedite a response, multi-agency or multi-national coordination is essential, and an effective means of mobilizing resources, such as basket funding or program-based approaches, would be desirable. Originality/value: With an up-to-date dataset, this study confirms the effectiveness of health expenditure disburse-ment with its diminishing returns, which may shed light to developing countries in designing relevant policies.
Original language | English |
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Pages (from-to) | 25-32 |
Number of pages | 8 |
Journal | Global Business and Finance Review |
Volume | 25 |
Issue number | 4 |
DOIs | |
State | Published - 2020 |
Bibliographical note
Publisher Copyright:© 2020 People and Global Business Association.
Keywords
- Diminishing Returns
- Health Expenditure
- Infant Mortality
- Sub-Saharan Africa