Good Governance, Public Health Expenditure and Economic Growth in Africa Nations: A Panel Data Approach
Abstract
The study investigates the good governance, public health expenditure and economic growth in eight countries (Algeria, Cameroon, Egypt, Ghana, Kenya, Morocco, Nigeria and South Africa) in Africa, using panel data which spans between 1996-2020. The study data gathered are real gross domestic product which is dependent variable while, export, import, total health expenditure, education and governance proxied government effectiveness which were sourced from WDI and WGI database, 2021. The study adopted Hausman and Wald, Pedroni residual cointegration, fixed and random effects and Dumitrescu Hurlin panel causality tests as an estimating technique. It was revealed from outcome that cointegration test indicates long run nexus among the variables during the periods under review. Also, Hausman and Wald findings that fixed effects as an estimating technique proved to be appropriate for the analysis. Thus, the result revealed from fixed effects findings that public health expenditure is inversely significant affect economic growth in each country. While it was revealed that both public health expenditure and government effectiveness exert negative significant effect on economic growth. Meanwhile lagged of public health expenditure, government effectiveness and population exert positive effect on economic growth. From panel causality findings revealed that there is bidirectional causal nexus among the variables. In light of this, the study ends with policy suggestions that will undoubtedly, go beyond the sustainable development objectives, which are not even close to being realistic in the chosen nations. Furthermore, the health sector has to be improved immediately, particularly in the areas of timely delivery and high-quality investment. Low performance is a result of insufficient transparency and unproductive targets for total health spending. Thus, in order to enhance health condition via investing in health care, investments in the health sector, particularly those related to healthcare quality, should be closely scrutinised and managed.
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