Government Health Expenditure Research Articles

Environmental sustainability and government health expenditure in Africa: is there a nexus?

PurposeThis study aims to explore the impact of environmental sustainability on government health expenditure in Africa for the period 2000–2021.Design/methodology/approachThe study employs the generalized method of moments (GMM) technique and utilizes a sample of 43 African countries.FindingsThe study reveals that carbon dioxide (CO2) emissions and renewable energy consumption have a positive relationship with health expenditure. For the control factors, we demonstrate that economic growth, urbanization and industrialization have a significant negative influence on health expenditure, while the impact of education on health expenditure is positive.Practical implicationsThe study proposes several policy recommendations, including prioritizing investment in renewable energy sources and promoting the use of cleaner energy sources such as wind, solar and hydroelectric power. These measures would help improve environmental quality and reduce government health expenditure.Originality/valueThe study contributes to the limited research on the relationship between environmental quality and health expenditure in Africa. Moreover, it goes beyond previous studies that only considered CO2 emissions and explores the impact of adopting cleaner energy sources on health expenditure.

Persistent inequities in maternal mortality in Latin America and the Caribbean, 1990–2019

BackgroundDespite the resources and personnel mobilized in Latin America and the Caribbean to reduce the maternal mortality ratio (MMR, maternal deaths per 100 000 live births) in women aged 10–54 years by 75% between 2000 and 2015, the region failed to meet the Millenium Development Goals (MDGs) due to persistent barriers to access quality reproductive, maternal, and neonatal health services.MethodsUsing 1990–2019 data from the Global Burden of Disease project, we carried out a two-stepwise analysis to (a) identify the differences in the MMR temporal patterns and (b) assess its relationship with selected indicators: government health expenditure (GHE), the GHE as percentage of gross domestic product (GDP), the availability of human resources for health (HRH), the coverage of effective interventions to reduce maternal mortality, and the level of economic development of each country.FindingsIn the descriptive analysis, we observed a heterogeneous overall reduction of MMR in the region between 1990 and 2019 and heterogeneous overall increases in the GHE, GHE/GDP, and HRH availability. The correlation analysis showed a close, negative, and dependent association of the economic development level between the MMR and GHE per capita, the percentage of GHE to GDP, the availability of HRH, and the coverage of SBA. We observed the lowest MMRs when GHE as a percentage of GDP was close to 3% or about US$400 GHE per capita, HRH availability of 6 doctors, nurses, and midwives per 1,000 inhabitants, and skilled birth attendance levels above 90%.ConclusionsWithin the framework of the Sustainable Development Goals (SDGs) agenda, health policies aimed at the effective reduction of maternal mortality should consider allocating more resources as a necessary but not sufficient condition to achieve the goals and should prioritize the implementation of new forms of care with a gender and rights approach, as well as strengthening actions focused on vulnerable groups.

Carbon Dioxide Emissions and Its Socio-Economic Drivers Nexus: Empirical Evidence from MENA Countries

Carbon dioxide emissions is one of the main climate change causes. Nowadays is considered as one of the most important environmental degradation and air pollution in the world. The relationship between CO<sub>2</sub> emissions and their socio-economic determinants is investigated in this study. It uses empirical analysis of significant impact of the economic growth, the tourism development, the globalization, the population health, the population growth and the energy consumption on our interest variable. Thus, we're going to select an econometric model, an Autoregressive Distributed Lag model (ARDL) applied to a sample of 10 MENA countries. Our aim is to measure, long-run and short-run impact of the number of arrivals, the Foreign Direct Investment, government health expenditures, the energy consumption and the population growth rate on the CO<sub>2</sub> emissions. All variables are observed from 1995 to 2020. The methodology adopted in this work is as followed: First, the statistical indicators for the sample are calculated. Secondly, the temporal series stationarity is checked by realizing tests of first and second generation. The Pedroni ARDL and Pesaran cointegration tests are then applied. Finally, Granger causality for panel data is used. The causality analysis between variables is carried out using the Dumitrescu and Hurlin's test. Findings reveal that, in the long term, tourism sector and energy consumption have significant and positive impact on CO<sub>2</sub>. But the economic growth and population growth influenced it negatively and they are statistically significant. In the short term, the dependent variable is statistically impacted by economic growth. The degrees and magnitude of the individual effects of the various variables on the Carbone dioxide emissions vary from country to an other. There are bidirectional and unidirectional relationships causality between different variables. Our findings can be helpful for policy makers seeking to achieve the sustainable development goals in MENA region.

Research on health expenditure in Kazakhstan

Objective To understand and study Kazakhstan's resource planning and budget allocation in the field of health care through data related to Kazakhstan's health expenditure, to ensure the sustainable development of the health field between China and Kazakhstan, and to promote the medical and health undertakings among countries along the Belt and Road Initiative. Learn from each other's strengths and complement each other's weaknesses to promote cooperation. Methods Using the literature review method and comparative method, the per capita health expenditure in Kazakhstan and the other five Central Asian countries and China from 2001 to 2021 was compared with the proportion of GDP per capita, the proportion of self-pay expenditure in per capita health expenditure, and the total government health expenditure in the country. The proportion of GDP, per capita health expenditure and its proportion to per capita GDP, and the average actual growth average of per capita government health transfer expenditure and self-pay expenditure are compared with each other's medical and health security systems, health expenditures, national health levels and health resources. Results From 2001 to 2021, Kazakhstan's per capita health expenditure accounted for per capita GDP fluctuated between 2% and 4%, while other countries had growth trends of varying degrees. China's growth trend was relatively stable; Kazakhstan's per capita out- of -pocket health expenditure grew on average. The value is the lowest, only 1.05%, and the growth of government health transfer expenditures is at a medium level; the proportion of Kazakhstan's self-pay expenditures in per capita health expenditures and the proportion of total government health expenditures in GDP are also at a medium level. Conclusion (a) Kazakhstan's medical and health security system has certain effectiveness, and China's medical and health security system also has its advantages. There is a need for in-depth cooperation and development between China and Kazakhstan. (b)Kazakhstan needs to maintain a low proportion of per capita health expenditure in per capita GDP. The low growth rate of self-pay health expenditure and the low proportion of self-pay expenditure in per capita health expenditure are conducive to maintaining social equity and social welfare levels. (c)It is necessary for Kazakhstan to increase investment in the health field, promote medical research and innovation, and deepen cooperation in the medical and health field with countries along the "Belt and Road".

Effectiveness of public health spending in Sub-Saharan Africa: The moderating role of health system efficiency

ABSTRACT Public health spending (PHS) has been extensively investigated concerning population health outcomes (PHO), but its effectiveness has been less analysed. To this end, this study examines the association between domestic general government health expenditure (DGGHE) and PHO in terms of disability-adjusted life year (DALY) while testing the role of health system efficiency (HSE) in its effects. The under-five mortality(U5MR) is also used in the analysis to assess the effectiveness of services. The study uses publicly available data from 2008 to 2018 across forty-three countries in SSA and applies the GMM estimator based on linear and nonlinear moment conditions. The findings indicate that an increase in DGGHE was significantly associated with a decrease in DALY and U5MR, with the lowest decrease in countries with the lowest HSE scores. Therefore, the study urges governments in SSA countries to consider mechanisms that enhance health system efficiency while planning interventions based on increased spending on health.

Economic Impact of Health Expenditures: Panel Data Analysis for Selected Economies

It is estimated that healthcare services will increasingly strain public healthcare expenditures in the near future. Public health expenditures yield more effective outputs than household expenditures do. Due to its direct impact on human capital, public health displays a positive correlation with labor productivity, personal expenditures, and GDP indicators. In welfare economics theory, the examination of economic and social welfare focuses on the analysis of the distribution of economic resources among social actors. During the 2003-2016 timeframe in Turkey, Ukraine, Moldova, Poland, and South Korea, this research examined several health care expenditures. These included the proportion of the population spending more than 10 pct of their household consumption or income on out-of-pocket health care expenses, current health expenditure per capita, domestic general government health expenditure per capita, and domestic private health expenditure per capita. To conduct the panel data analysis, the "domestic private health expenditure per capita" data was utilized. Based on the research findings, an increase in domestic government health expenditures in certain countries results in an escalation of household health expenditures, while an increase in private sector health spending leads to a reduction in household health expenditures.

Economic impact of government health expenditure: An application of the computable general equilibrium model to the Iran

BACKGROUND: Considering the increase in health expenses and the government’s role in health financing, this study investigated the economic impact of increases in the share of the health sector in the government budget while taxes remain unchanged and government spending is fixed. MATERIAL AND METHODS: The economic model used in this study was a macroeconomic Computable General Equilibrium (CGE) model. This model was calibrated using a 2011 Social Accounting Matrix (SAM) Of Iran. The CGE model was solved with non-linear programming using the General Algebraic Modeling System package, version 2.50. The effect of this simulation on the government budget deficit, the production of different sectors of the economy, and the employment rate was investigated. RESULTS: Based on our fundings the elasticity of substitution in the agricultural and industrial sectors is higher than in the health and service sector. Also, the biggest decrease in production occurred in the industry, agriculture, and service sectors, respectively. With the doubling of the share of government spending in the health sector, the employment rate of this sector has increased by 40.9%, but the highest decrease in the ignition rate is related to the service sectors (−2.7%), agriculture (−0.23%), and industry (−0.14%). CONCLUSION: Increasing the share of government spending in the health sector in comparison with other sectors of the economy, provided that government spending is maintained in general, leads to a decrease in production and economic welfare. It seems that the Iranian government should seek to increase the sources of health financing and the share of government expenditures in the health sector with other ways in order to improve the health level of the society and have a positive effect on other economic sectors.

The Relationship Between Health aid and Health Outcomes and the Role of Domestic Healthcare Expenditure in Developing Countries

Foreign aid is a controversial tool for helping developing countries achieve economic growth and welfare. Nevertheless, the early 2000s saw a rise in development assistance dedicated to the health sector. The concept of sustainable development highlights the importance of a healthy population to achieve overall development. Using a dataset containing Official Development Assistance channelled towards 100 countries between 2002 and 2020, this paper studies the effect of health aid on health outcomes. To test aid effectiveness, regression models are estimated using infant mortality and life expectancy as proxies for health outcomes. The analyses show that health aid has a positive effect on population health. Moreover, this study tests whether domestic government health expenditure can give further insights into the complex relationship between aid and health improvements. Results yield no significant effect of health aid on public health expenditure; hence no mediation effect can be found. Findings are robust to varying controls and an instrumental variable approach, where two-year lagged health aid is used as instrument. Results also suggest that socioeconomic factors like urbanisation have a positive effect on health outcomes, which implies that population health depends on many factors besides monetary resources.

Population mobility : spatial spillover effect of government health expenditure in China

ABSTRACT Background Since the 20th century, pursuing Universal Health Coverage (UHC) has emerged as an important developmental objective in numerous countries and across the global health community. With the intricate ramifications of population mobility (PM), the government faces a mounting imperative to judiciously deploy health expenditure to realise UHC effectively. Objective This study aimed to construct a comprehensive UHC index for China, assess the spatial effects of Government Health Expenditure (GHE) on UHC, and explore the moderating effects of PM on this association. Method A Dynamic Spatial Durbin Model (DSDM) was employed to investigate the influence of the GHE on UHC. Therefore, we tested the moderating effect of PM. Results In the short-term, the GHE negatively impacted local UHC. However, it enhanced the UHC in neighbouring regions. Over the long term, GHE improved local UHC but decreased UHC in neighbouring regions. In the short-term, when the PM exceeded 1.42, the GHE increased the local UHC. Over the long term, when the PM exceeded 1.107, the GHE impeded local UHC. If the PM exceeded 0.91 in the long term, the GHE promoted UHC in neighbouring regions. The results of this study offer a partial explanation of GHE decisions and behaviours. Conclusions To enhance UHC, a viable strategy involves augmenting vertical transfer payments from the central government to local governments. Local governments should institute healthcare systems tailored to the urban scale and developmental stages, with due consideration for PM. Optimising the information disclosure mechanism is also a worthwhile endeavour.

Factors influencing inequality in government health expenditures within African regional economic communities

BackgroundThe unequal distribution of government health spending within African regional economic groupings is a significant barrier to achieving Universal Health Coverage and reaching health-related Sustainable Development targets. It also hampers the progress toward achieving the African Union’s vision of an integrated and prosperous Africa, free of its heavy disease burden. Based on panel data from 36 countries nested into eight Regional Economic Communities (RECs), this study probes the effects of countries' macro-level factors on government health expenditure disparities within eight regional economic communities from 2000 to 2019.MethodWe use the multilevel linear mixed-effect method to show whether countries' trade gains, life expectancy at birth, poverty, urbanization, information and communication technology, and population aging worsen or reduce the differences for two government health expenditure indicators.ResultsThe insignificant effect of GDP per capita suggests that in most regional economic groupings, the health sector is still not considered a high-priority sector regarding overall government expenditures. Countries' poverty levels and urbanization increase the domestic general government health expenditure disparities as a percentage of general government expenditure within the regional groupings. However, trade gains and ICT diffusion reduce these disparities. Furthermore, the results reveal that external health expenditure per capita and life expectancy at birth positively impact within-regional inequalities in the domestic general government health expenditure per capita. In contrast, GDP per capita and trade gains tend to reduce them.ConclusionsThis study enriches the research on the determinants of government health expenditure inequality in Africa. Policies that can spur growth in trade and ICT access should be encouraged. Countries should also make more efforts to reduce poverty. Governments should also develop policies promoting economic growth and planned urbanization.

Development effects of industrialization, labor force participation and electrification on productive capacity in Africa: A panel data investigation

In our study spanning 2010–2022 across 50 African economies, we investigated the effects of industrialization, labor force participation, and electrification on Africa’s productive capacity. We also examined how electrification moderates the effect of industrialization and labor force participation on productive capacity. We adopted the pooled OLS, the fixed effect estimator, and the dynamic system GMM estimation technique for our analysis. Our findings indicate industrialization, labor force participation, and electrification as potent channels for enhancing Africa's productive capacity. In tandem with Africa’s reality, we find that electrification isn’t moderating the positive impact of industrialization and labor force participation on productivity. Our findings also revealed human capital development, government health expenditure, and institutional quality as pivotal drivers of productive capacity in Africa, while factors like global economic policy uncertainty and natural resource endowment exhibit predominantly negative roles. These results underscore the need for African policymakers and leaders to foster an enabling environment that facilitates industrialization, increased labor force participation, and improved electricity access to promote economic performance and productivity.

Asymmetric Effect of Income on the Healthcare Expenditure in Türkiye

This paper examines the dynamics between income and health spending in Türkiye from 1988 to 2020, employing autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) methodologies. One of the key findings of this study is the presence of an asymmetric relationship between variations in income and overall healthcare expenditure. This means that changes in income levels do not have uniform effects on health expenditure, and the direction of these effects depends on whether income is rising or falling. Interestingly, the research reveals that both increases and decreases in income lead to a rise in total health expenditure. However, the impact of income declines on health expenditure is more pronounced. In other words, when people experience a decrease in income, they tend to allocate a larger portion of their reduced resources to health-related expenses. This highlights the significant financial strain that income reductions can place on individuals and households when it comes to healthcare costs. This pattern of asymmetric effects also extends to government or compulsory health expenditures. When income falls, the government's role in funding health expenses becomes more prominent, as individuals rely more on public healthcare services during economic downturns. Furthermore, the study sheds light on the intriguing relationship between income shifts and voluntary or out-of-pocket health expenses. Positive income shifts are found to be associated with a reduction in voluntary health expenditure. This suggests that as people experience an improvement in their financial situation, they may opt for less costly or more efficient healthcare services, leading to a decrease in out-of-pocket expenses. Conversely, when income levels decrease, individuals may find themselves with limited options, potentially resorting to more expensive private healthcare services or bearing a greater burden of out-of-pocket expenses. This finding underscores the financial vulnerability that can accompany negative income shifts.

Public health spending in Sub-Saharan Africa: exploring transmission mechanisms using the latent growth curve mediation model

In response to the imperatives of universal health coverage, structural factors that may hinder the effectiveness of increased spending in sub-Saharan Africa (SSA) need attention. This study assessed the mediating role of these factors in domestic general government health expenditure (DGGHE) effects to propose solutions for improving population health outcomes (PHO). The analysis used the Latent Growth Curve Mediation Model (LGCMM) approach within the structural equation model (SEM) framework for panel data from 42 SSA countries from 2015 to 2018. The findings were that malaria and female education formed a channel through which DGGHE imparted its effects on DALY in SSA, and these effects were achieved via the specific path from the DGGHE slope to the DALY slope, via malaria and female education slopes. However, the paper found no evidence of immunization coverage mediating the relationship between DGGHE and DALY in SSA. The paper concludes that structural factors affect the effectiveness of DGGHE on PHO, implying that governments should emphasize existing programs to fight against malaria and increase immunization coverage.

Does Government Spending Affect the Degree of Embeddedness in the Global Value Chain? - A Case Study of the Pharmaceutical Manufacturing Industry

Abstract The pharmaceutical industry, as a high-input, high-risk, and high-return sector, is closely related to human life and health. With the continuous refinement of the global division of labor, the global value chain system of the pharmaceutical manufacturing industry is constantly being perfected, and the government's investment in health is also increasing. This paper uses databases such as UIBE and GHED from 2000 to 2018 to calculate the degree of embeddedness in the global value chain of the pharmaceutical manufacturing industry in 64 countries and empirically tests the internal mechanism by which government health expenditure affects this embeddedness. The study finds that government health expenditure has a "U"-shaped non-linear relationship with the embeddedness of the pharmaceutical manufacturing industry in the global value chain of the home country. The mediating effect shows that government health expenditure can influence the intensity of intellectual property protection, which in turn affects the embeddedness of the pharmaceutical manufacturing industry in the global value chain. Furthermore, the study finds that government health expenditure also has a "U"-shaped non-linear relationship with the strength of intellectual property protection in the pharmaceutical manufacturing industry, and that the intensity of intellectual property protection has a positive impact on its embeddedness in the global value chain. Keywords: Pharmaceutical Manufacturing, Global Value Chain, Intellectual Property Protection, Government Expenditure.

Aligning Development Aid toward Sustainable Development Goals: When and Where is Aid Effective on the Health Workforce?

Ensuring universal health coverage is one of the top priorities under the United Nations’ Sustainable Development Goals (SDGs). The World Health Organization recognizes the critical role of the health workforce in promoting this mission. However, developing countries throughout the world often experience shortages in the health workforce, especially during pandemic outbreaks such as coronavirus disease 2019. Governments and humanitarian organizations worldwide have supported health workforce development through development aid, but many questions remain about its effectiveness. Therefore, this study investigates whether development aid is effective toward health workforce growth, in general, and when and where the aid is effective within various segments of the health workforce, in particular. Furthermore, the study explores the role of government behavior in recipient countries and the introduction of SDG-3 on aid effectiveness for the health workforce. Analyzing data pertaining to 134 developing countries using fixed-, moderating-, threshold-effects regression models and event study methods, we derive the following results: First, all forms of development aid contribute positively to the health workforce from a “universal” perspective. Second, we establish that aid can be an effective catalyst for “physicians and clinical officials” and the “total health workforce” only when the current workforce density of the corresponding workforce segment exceeds a certain threshold. Thus, countries with severe shortages in the total health workforce as well as physicians and clinical officials, have difficulty reaping the dividends of health personnel development aid. Fortunately, we find a breakthrough from the perspective of “nurses and midwives” wherein the development aid is shown to be always effective for this leading segment of the health workforce. Finally, it is shown that increased government health expenditure, government effectiveness of recipient countries, and the introduction of SDG-3.c significantly enhance aid effectiveness. Our study directly benefits funding managers with development aid allocation and implicitly enhances donor recognition and confidence in health personnel development aid, thereby supporting the universal health coverage goals of the United Nations and the World Health Organization.

Trade Openness and Life Expectancy: Evidence from Nigeria

The health sector in Nigeria is at risk following barriers to international trade, as trade across Nigeria and the rest of the world may not be sufficiently promoting health indicators in particular life expectancy. This paper examined the impact of trade openness on life expectancy in Nigeria from 1986 to 2023. This paper utilized the autoregressive distributed lag model (ARDL) on trade openness, foreign direct investment, hospital infrastructure, electricity consumption and government health expenditure. From the result, it was showed that trade openness had a negative impact on life expectancy, while the three lagged value of foreign direct investment had a positive impact on infant mortality. As a way of policy implementation, the Government should create mechanisms to control the extent to which the economy is opened to the external world. This is because illicit and substandard health goods could be brough tinto the country which could have adverse and negative effect on the health come in the long run in Nigeria.

Government Expenditure and Economic Growth in Tanzania

This study examines the impact of government expenditure on economic growth, focusing on health, infrastructure, education, and agriculture in Tanzania. The data from 1970–2020 were analysed using the STATA software. Government expenditure on education, health, agriculture, and infrastructure sectors were the independent variables, while GDP was the dependent variable. Wagner’s law of increasing state activity and Keynesian economic theory were used to guide the study. Unit root test and Johansen co-integration test were conducted. The Johansen co-integration test results indicated the absence of a long-run relationship between all explanatory variables and economic growth. However, the ARDL model revealed that government health expenditure had a low effect on economic growth compared to infrastructure, education, and agriculture expenditures; all of which had higher effects. The study recommends that more government resources be spent on substantial infrastructure.

OECD Ülkelerinin Sürdürülebilir Kalkınma Değişkenlerine Göre Kendi Kendine Öğrenen Haritalar Yaklaşımı ile Kümelenmesi

Sustainable Development concept (SD) aims to better life for future generations. However, the COVID-19 pandemic has caused tremendous effects on people’s life in several areas. Therefore, the study aimed to investigate the impact of COVID-19 on the selected part of SD indicators in the OECD countries using Self-Organizing Map (SOM). SOM is a kind of artificial neural network (ANN) method, which is an effective clustering method to find hinder non-linear relationships between indicators. The data contained 38 OECD member countries for 11 variables for each country, covering three years (2019-2021). Firstly, descriptive statistics and Spearman rank correlation analysis were used for bivariate analysis. The coefficient of variation was also used to measure the convergence of indicators. Then, it was a two-stage clustering method using SOM and hierarchical clustering methods—the optimal cluster found according to the Silhouette Index and Davies–Bouldin Index, and as three. The convergence of gross domestic product increased gradually to 40.33% in 2019, 42.01% in 2020, and 43.69% in 2021, meaning increasing relative variability of OECD countries. While the mean of the life span was decreased, the share of health expenditure, health expenditure per capita, out-of-pocket health expenditure, and government health expenditure were increased in the study period. According to clustering analysis, the countries had similar characteristics within three years, except Colombia. Also, the USA distinguished very different characteristics from other OECD countries. Although the mean of study indicators varies due to the effect of the pandemic, the change within each OECD country showed mostly similar characteristics within three years.

The Impact of Fiscal Policy on Income Inequality and Health Outcomes in Sub-Saharan Africa Countries

This study estimates the relative effect of fiscal policy on income inequality and health outcomes in Sub-Saharan Africa (SSA) countries. The study covers the period 2010–2022 using panel data on 12 countries. Estimation is done using the System GMM estimation technique. It is shown that income tax (ICT) exerts a positive and significant effect on MORT. Government health expenditure (GXH) and population growth (POP) negatively but insignificantly influence MORT, while the effect of carbon emission (CO2) is positive, but not statistically significant. The effect of health-oriented development assistance (HODA) on MORT is negative and statistically significant. Additionally, government health expenditure (GXH) exerts a positive but insignificant effect on LFX. The effect of health-oriented development assistance (HODA) on LFX is also positive and statistically significant. Both income tax (ICT); the effect of POP is negative and significant. Finally, the study reveals that a one-period lag in income inequality (INQ) has a negative and significant effect on current INQ. In addition, government health expenditure (GXH), income tax (ICT), and population growth all exert a negative effect on INQ, with ICT being the most significant of all of them. The effect of health-oriented development assistance (HODA) and carbon emission (CO2) is found to be positive, but not statistically significant. Amongst others, the study recommends that countries across SSA formulate policies that will help in slowing down population growth to levels that are manageable and will not pose adverse health challenges in the region.

Using Linear Regressions Analyzing the Impact of Medical Technology Inputs on Economic Output in China and Brazil

In the current era of globalization, the relationship between healthcare investments and economic outcomes has emerged as a pivotal research focus. Researchers have made significant strides in understanding this relationship; however, certain knowledge gaps and disparities in explanations persist. This underscores the importance of investigating the impact of healthcare investments on economic outcomes, particularly in the contexts of two distinct yet influential developing countries, China and Brazil. This study delves into the intricate interplay between healthcare investments and economic outcomes in China and Brazil. Using a comprehensive dataset from the World Health Organization (WHO), including capital health expenditures, domestic government health expenditures, and more. Then we employ the linear regression analysis in tandem with these indicators to investigate the relationship between them and economic output. This research also considers non-data-based variables, such as policies and national economic conditions, to ensure the accuracy of our findings. Our findings reveal that healthcare expenditures, particularly Government General Healthcare Expenditure (GGHE-D) and External Health Expenditure (EXT), significantly impact China's GDP growth. In contrast, Brazil exhibits a distinct pattern, with GGHE-D negatively impacting its economic output while Transfers from Government Domestic Revenue (TransGDR) that allocated to health contribute positively. These distinctions highlight the diverse effects of healthcare spending on the economies of the two nations. In conclusion, this research underscores the need for tailored healthcare policies in the context of economic structures and the significance of evidence-based decision-making. It also highlights the potential of international cooperation in healthcare to drive GDP growth and healthcare innovation.