Healthcare Financing And Changes In Health Status: Case Study Of Selected Sub-Saharan African Countries

Authors: Oladele O. Aluko Ph.D
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This paper empirically examined the link between healthcare financing and changes in health status in selected sub-Saharan African (SSA) countries. The persistent high mortality rate and low life expectancy in the region creating growth instability and human capital detours was the motivation for this paper. To carry out the empirical study, sixten SSA countries were selected based on the availability of required information. Data were collected from World Bank data catalog, world economic outlook and World Health Organization on key variables such as private and public health expenditure, mortality rate and life expectancy. A model was formulated which consist of a set of structural equation made up of two equations. Error correction estimation technique by Baltagi and Li was used to estimate the structural model. The result indicated that Private health expenditure and Per capita income do not have any significant impact on life expectancy and mortality rate in the region suggesting that private health financing have been inadequate in the region. Furthermore, recommendations were made, one of which is the promotion of more equitable income distribution measures in the region to improve health status.