Public health expenditure of BRICS countries - an empirical analysis

Abstract

Background: Health expenditure is vital as it increases labor productivity which further induces growth and development. Health-care expenses in BRICS countries are not only inadequate and access to them varies across countries which are mainly influenced by the socioeconomic conditions as well as by the health policies in place. Objective: The purpose of this study was to analyze the per capita public health expenditure of BRICS countries in relation to exogenous explanatory variables. Materials and Methods: The study used panel data of five countries from 1995 to 2013. Data for the per capita public health expenditure, per capita GDP, and the other six variables were obtained from the World Bank. Hausman test was in favor of fixed effect panel data regression model to determine the effects of public health expenditure on health outcomes. Result: The results indicate per capita GDP, death rate, life expectancy at birth, and infant mortality rate under five were significantly contributing to the increase in the per capita public health expenditure. Variables such as infant mortality rate and percent of population above 65 years show negative correlation with that of per capita public health expenditure. Conclusion: The findings imply that public health expenditure plays a crucial role in providing better health care to people in BRICS countries. The policy implication is that government of respective BRICS countries has to increase its budgetary allocation to the health sector to catch up with the standard of human capital achieved by developed countries.