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Healthcare expenditure, good governance and human development

Banik, Banna ; Roy, Chandan Kumar ; Hossain, Rabiul

Economia (Associação Nacional dos Centros de Pós-Graduação em Economia : 2000), 2023-01, Vol.24 (1), p.1-23 [Periódico revisado por pares]

Brasilia: Emerald Group Publishing Limited

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  • Título:
    Healthcare expenditure, good governance and human development
  • Autor: Banik, Banna ; Roy, Chandan Kumar ; Hossain, Rabiul
  • Assuntos: Corruption ; Economic development ; Economic growth ; Economic theory ; Education ; Government spending ; Health care expenditures ; Human capital ; Infrastructure ; Labor productivity ; Life expectancy ; Poverty ; Public health
  • É parte de: Economia (Associação Nacional dos Centros de Pós-Graduação em Economia : 2000), 2023-01, Vol.24 (1), p.1-23
  • Descrição: Purpose This study aims to investigate the consequence of the quality of governance (QoG) in moderating the effect of healthcare spending on human development. Design/methodology/approach The authors employ a two-step Windmeijer finite sample-corrected system-generalized method of moments (sys-GMM) estimation technique on a panel dataset of 161 countries from 2005 to 2019. The authors use healthcare expenditure as the main explanatory variable and the Human Development Index (HDI) as the dependent variable and also consider voice and accountability (VnA), political stability and absence of terrorism (PSnAT), governance effectiveness (GoE), regulatory quality (ReQ), rules of law (RLaw) and control of corruption (CoC) dimensions of governance indicators as proxies of good governance. The authors develop a new measure of good governance from these six dimensions of governance using principal component analysis (PCA). Findings The authors empirically revealed that allocating more healthcare support alone is insufficient to improve human development. Individually, PSnAT has the highest net positive effect on health expenditure that helps to increase human welfare. Further, the corresponding interaction effect between expenditure and the Good Governance Index (GGI) is negative but insignificant for low-income countries (LICs); negative and statistically significant for sub-Saharan African (SSA) economies and positive but insignificant for South Asian nations. Originality/value This study is an in-depth analysis of how governance impacts the effectiveness of healthcare expenditure to ensure higher human development, particularly in a large panel of 161 countries. The authors have developed a new index of good governance and later extended the analysis by separating countries based on the income level and geographical location, which are utterly absent in existing literature.
  • Editor: Brasilia: Emerald Group Publishing Limited
  • Idioma: Inglês
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  • Realização: ABCD-USP USP   Logos de Redes Sociais: Freepik

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