GOOD GOVERNANCE, PUBLIC HEALTH EXPENDITURE AND INCLUSIVE GROWTH IN AFRICA NATIONS: A PANEL DATA APPROACH

  • TOPE JOSHUA OJO DOCTORAL STUDENT OF OLABISI ONABANJO UNIVERSITY, AGO-IWOYE, OGUN STATE
Keywords: Public Health Expenditure, Good Governance, Inclusive growth

Abstract

This study aims to reassess good governance, public health expenditure and inclusive growth in Africa nations using eight (8) countries that constitute 65 percent of Africa whose economies were largely affected during covid-19 crisis. The countries were drawn from the five regions of Africa (Northern Africa, Middle Africa, West Africa, Eastern Africa and South Africa) using panel data which spans between 1996 - 2020. The study includes the following variables real gross domestic product which is dependent variable while, export, import, total health expenditure, education and governance proxied government effectiveness that 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 to analyse the data at both each and overall countries. It was revealed from cointegration test that, there is presence of long run nexus among the variables during the periods under review. It was equally discovered from the from 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. On this note, the study therefore concludes with policy recommendations which will definitely promulgate beyond sustainable development goals which ill det achievable targets in the selected countries. More so, there is urgent to improve health sector, especially in the area quality of the investment and prompt deliverance. Inadequate transparency and counterproductive goals for overall health expenditures are the cause of low performance. Thus, health sector investments, particularly healthcare quality, should be carefully examined and monitored in order to improve health condition by investing in health care.

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Published
2024-06-15
How to Cite
OJO, T. (2024). GOOD GOVERNANCE, PUBLIC HEALTH EXPENDITURE AND INCLUSIVE GROWTH IN AFRICA NATIONS: A PANEL DATA APPROACH. Empirical Economic Review, 7(1). https://doi.org/10.29145/eer.71.01
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Articles