Abstract
This study evaluates the impact of health care expenditure by the government on health sector outcomes in Pakistan by using data from the period 1982 to 2016. To examine whether the variables are stationary, the ADF test is run whereas the relationship among the variables is tested through the ARDL model technique. The empirical result from the regression equation shows that healthcare expenditure affects significantly the health sector outcome i.e., a decrease in infant deaths in the long run. Bilateral and multilateral fund assistance becomes a part of health expenditure in less progressive countries which is helpful for increasing the resource allocation in the vital segment of the economy. Hence funds allocated for health care expenditure need to be sensibly utilized because it will help in achieving a portion of the Millennium Development Goals. Improved wellbeing can be achieved as an outcome of enhanced capacities of the health sector as a result of the proper allocation of public healthcare funds.
Highlights
This study evaluates the impact of health care expenditure by the government on health sector outcomes in Pakistan by using data from the period 1982 to 2016
The empirical result from the regression equation shows that healthcare expenditure affects significantly the health sector outcome i.e., a decrease in infant deaths in the long run
When we talk about economic development, we find a strong link between economic development and health improvement because when an economy starts to grow, it results in an overall improvement in health quality and equity
Summary
When we talk about economic development, we find a strong link between economic development and health improvement because when an economy starts to grow, it results in an overall improvement in health quality and equity. Effective health care programs contribute significantly to the reduction of infant mortality and reduced death rate and increased life expectancy despite poor policies and mismanagement of funds. Increasing life expectancy and decreasing child mortality in developing countries is related to increased health care expenditure. The result that high government expenditure increase mortality rates distributed and allocated less productively were significant in samples. By using panel data, Bokhari et al (2007) econometrically evaluated that economic growth was undoubtedly an important factor to affect health outcomes and government spending on health was a significant factor in developing countries. Based on data from 17 OECD countries for the time between 1973 and 2000, Kim and Lane (2013) find that government health expenditure decreases infant mortality rate and has a positive impact on life expectancy at birth. The per capita income caused a strong significant impact on health outcomes rather than other factors
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