Healthcare expenditure and life expectancy in Cameroon

Abstract

Healthcare is a serious issue confronting governments and households and calling for repeated deliberations in international forums. Ensuring good health for all was the predominant call of the millennium development goals (MDGs), re-echoed again in the sustainable development goals (SDGs). The first objective of this study is to evaluate and compare the impact of public and private health spending on life expectancy, and the second objective is to examine the causal link among public health expenditure, private health expenditure and life expectancy in Cameroon. We used annual time series data from 1980 to 2014. Ordinary least squares (OLS) regression was employed to evaluate the effect of public and private health expenditure on life expectancy while the Toda and Yamamoto causality test was used to examine the relationship among public health expenditure, private health expenditure and life expectancy in Cameroon. The result shows that private health expenditure has a positive and significant impact on life expectancy while public health expenditure has no significant impact on life expectancy in Cameroon. The results of the causality test show a bidirectional causality between private health expenditure and life expectancy and a unidirectional causality running from life expectancy to public health expenditure. The findings of this study suggest that the Cameroonian government should continue to embark on its poverty reduction strategy elaborated in its Growth and Employment Strategy Paper (GESP) and in pursuing its vision of attaining the SDGs by 2030. In addition, establishing effective public-private partnerships in developing the health sector could go a long way to improve the health status of the population.