World Bank Development Indicators Research Articles

Monetary policy regimes and price stability in the West African monetary zone

The study examined monetary policy regimes and price stability in the West African Monetary zone. This was undertaken given that countries in the zone are implementing different monetary policy regimes to achieve price stability for macroeconomic stability and economic growth, yet these have been elusive. So, the objective of the study was to examine the effect of monetary policy regimes on price stability in the West African monetary zone. The study adopted an ex-post facto research design and obtained secondary data from documents of the Central Banks of the WAMZ countries, the World Bank Development Indicator (WDI), the International Monetary Fund (IMF), and the International Financial Statistics (IFS) database for the period from 2001 to 2021. The method of data analysis involved the use of descriptive and analytical statistical tools. The estimation technique employed was the Panel Autoregressive Distribution Lag model, complemented by the Juodis, Karavias, and Sarafidis (2021) granger-causality test. The findings of the study indicate that the various monetary policy regimes being implemented in the West African Monetary Zone yielded conflicting effects on price stability. On the whole, the results show that the monetary policy rate against the money supply is more effective to achieve price stability in the West African monetary zone. Hence, the study makes the following recommendations; policymakers must ensure that an effective monetary policy is put in place to curb the persistent inflation in the zone that undermines socioeconomic development. Countries should review monetary policy rates appropriately to stimulate output growth, and, there should be cooperation between the monetary and fiscal authorities in the West African Monetary Zone to ensure smooth coordination and consistency in monetary and fiscal pursuits.

DOES TRADE OPENNESS EXACERBATE CARBON DIOXIDE EMISSION? : EVIDENCE FROM NIGERIA

High emissions of greenhouse gases components have today become a world phenomenon. In Africa, Nigeria is the second-highest emitter of greenhouse gases (GHGs), after South Africa. Carbon dioxide (CO2) emissions constitute the largest source of GHGs; hence it has become a widely discussed and researched subject. This, however, is a negative unintended consequence that has emanated from the growing interdependence of the world economies. One of the major instruments of achieving a global world which also stood as a major determinant of economic growth is trade openness. This paper, therefore, examines the impact and the relationship between trade openness on CO2 emissions in Nigeria. The method employed to achieve the stated objectives is the Autoregressive Distributed Lag (ARDL) cointegration technique, using the annual time series data sourced from the World Bank Development Indicator, 2020, for periods 1980 to 2019. The major findings from the study show that there is an insignificant positive relationship between trade openness on CO2 emissions. Also, there exists an increasing trend of CO2 emissions in Nigeria, while that of trade openness shows fluctuation for the periodic review and this depicts a high vulnerability to external shocks. With these findings, the study recommends that the Nigerian government should be more proactive and tenacious in implementing environmental and trade policies in favour of a cleaner economy. Also, the Nigerian government must become keener toward attracting only investors that will produce clean goods and not compromise on the necessity to improve environmental quality

Effect of Public Debt on Poverty and Economic Growth of Nigeria (1981-2019)

The research in focus aimed to investigate the interplay between public debt, poverty, and economic growth in Nigeria during the period spanning from 1981 to 2019. The specific objective was to assess the relationship between these variables within the Nigerian context during this timeframe. To conduct this analysis, time series data were employed, sourced from the Central Bank of Nigeria’s annual statistical bulletin and World Bank development indicators. Initially, unit root tests, such as the Augmented Dickey-Fuller (ADF) and Philip Perron (PP) tests, were executed to establish the stationarity of the variables. These tests indicated that, in model one, all variables exhibited stationarity at order one (1) and order zero (0), whereas in model two, all variables were stationary at order one (1). Subsequently, the Auto Regressive Distributive Lag Model (ARDL) was employed to conduct short-run analysis and reveal the long-run coefficients in model one. In model two, the Error Correction Model (ECM) was utilized to investigate the data and assess the speed of adjustment from the short run to the long-run equilibrium state. The Granger causality test was also applied to determine causality relationships among the variables and to discern the direction of causality. The findings of this study indicate that external debt exhibited a negative impact in the short run but a positive impact in the long run on the Nigerian economy during the study period. Additionally, there was evidence of unidirectional causality between external debt and economic growth. Conversely, domestic debt exerted a negative influence on both short and long-term economic performance in Nigeria, with unidirectional causality established between domestic debt and economic growth. In light of these conclusions, the study recommends the implementation of effective debt management strategies by the government, especially concerning loan repayment. It is also suggested that loans acquired should be promptly channeled into viable investments aimed at enhancing the welfare of the populace and overall economic improvement.

EFFECT OF TRADE OPENNESS ON POVERTY REDUCTION IN NIGERIA

This study looked at how trade openness affected the lowering of poverty in Nigeria from 1986 to 2020. The Central Bank of Nigeria Statistical Bulletin and the World Bank's Development Indicators were used to get data for the study. For the basic test, the study uses the Augmented Dickey Fuller unit root test. For the analysis, the study uses the Johansen Cointegration test and the Ordinary Least Square (OLS) method. The facts show that trade openness has had a big effect on the reduction of poverty in Nigeria and that this effect is currently bad. This study comes to the conclusion that making trade more open over time has not made people more productive. The study suggests, among other things, that the government should start important trade reforms which can boost domestic production, especially in agriculture, where we have a comparative advantage. This can be done by giving subsidies and tax breaks to industries and farmers who make goods that are being imported, so they can increase their production capacity to meet rising demand in the economy and export surplus.

Re-examining the relationship between Foreign Direct Investment and Economic Growth in Nigeria

This study examined the impact of foreign direct investment on Nigeria economic growth at large using time series data from World Bank Development Indicators. The research employed Auto Distributed Lag Model (ARDL) to investigate the impact of FDI on Nigeria economic growth both in the short-run and long-run. It was revealed that foreign direct investment has positive significant impact on Nigeria economic growth within the period under review. The research therefore concludes, that foreign direct investment has significant impact on Nigeria economic growth collaborating the earlier findings in theoretical and empirical literatures. The research therefore, recommends among others that Nigeria government and other West-African countries should invest more in infrastructural development and on R&D to increase the country domestic firm absorptive capacity and inflow of FDI in the country.

Energy Resources, Investment Channels and Economic Growth

The research investigated whether energy resources increase the possibility for investment promotion and how they affect economic growth. In other words, the article explored whether energy could be used to support economic growth in Nigeria through investment. The analysis utilized secondary source of data from the World Bank's Development Indicators. The variables employed in the study included; Gross Domestic Product (GDP) being the dependent variable, Gross Fixed Capital Formation (GFCF), Foreign Direct Investment (FDI), Electricity and Natural Gas Rent (ENGR) and Openness (OPEN) spanning through 1980-2021. The methodology used in this study was dependent on the type of data collected and whose analysis was econometric in nature. The study performed a pre-estimation test via Ordinary Least Squares, and it was found that the result cannot be used for policy purposes due to some of the inherent problems associated with the estimation. This problem includes auto-correlation issues, multi-collinearity and others. This further propelled the study to conduct a post estimation test using the ADF statistics and the ARDL techniques of estimation and afterwards, the results showed a short run and long run impact of explanatory variables on economic growth. The study therefore recommended that the government should provide an enabling environment that will attract foreign direct investment, stimulate trade openness and also boost economic growth in Nigeria.

Cross examinations of maritime trade disruptions in Africa during COVID-19 pandemic

This study examined the influence of the disruption of COVID-19 on maritime shipping activities in Africa. Particular attention was paid to the variations in the performance of selected African countries in container ship calls, container throughput, and liner shipping connectivity between 2019 and 2020. Eighteen (18) African countries were selected from all the geographical regions of the continent based on data availability. Secondary data was drawn from records of maritime trade in the publications of the United Nations Conference on Trade and Development (UNCTAD) (2019, 2020, and 2021) as well as World Bank Development Indicators for the selected countries. Explorative data analysis was used to organize and present the data. Results showed that the North African region alone recorded an improved percentage of container ship calls in 2020 than in 2019. Results by individual countries showed that Ghana recorded the highest positive increase in ship calls in 2020 from her record in 2019. In addition, Morocco, recorded the highest container throughput in 2020 than the record in 2019 while all the countries exhibited a winding record of liner connectivity between the last quarter of 2019 through the last quarter of 2020. The study concluded that the disruption of maritime activity by the COVID-19 pandemic had a mixed impact on African countries’ performance. However, Africa has the potential to be more resilient to unforeseen shocks and become competitive if it is more integrated into the global supply chain and deploys modern and efficient technology and innovation to the shipping business more than it ever did.

Human Capital Development, Poverty and Income Inequality in Nigeria (1985-2020)

Test and Error Correction Model were the tools that were used to estimate the relationship between the variables. Data is from the World Bank Development Indicators (WDI) online database, 2021, Official Gazettes of the Federal Republic of Nigeria, Federal Ministry of Education and Macrotrend, 2021. Empirical results showed that the ratio of human capital to government spending was positive at 5 per cent in the short term, in line with a previous expectation. The long-term relationship between human capital development, poverty and income inequality in Nigeria has been negative. The ECM has a weak rate of adjustment of 1.2 per cent and a 1 per cent significance of this imbalance is corrected annually. Therefore, among other things, it was recommended that the federal government should increase budget allocations for the education and health sectors, and improves living standards through empowerment and the acquisition of self-employment skills.

Mathematical Modelling of Public Health Expenditure and Carbon Footprint in Nigeria

Most major rising economies are seeing a rise in health problems as a result of airborne smog caused by carbon dioxide discharges. The situation in Nigeria is getting too concerning, as the expense of healthcare services continues to rise as a result of environmental problems. The purpose of this research is to determine the extent to which investments in healthcare and social welfare have altered Nigeria's carbon footprint. Dependent variable in this study is CO2 emissions captured by the World Bank Development Indicators in metric tonnes, whereas the independent variables are public healthcare spending and social welfare cost. The data for these variables are kept in the Central Bank of Nigeria Statistical Bulletin from 2006 to 2020. Several statistical tests are being used in the study to confirm model stability, appropriateness, and normalcy. As a consequence, the unit root is validated at the level, and additional diagnostic tests show that the multiple regression model used in this work is free of distortion, serial correlation, and hetroskedacity. As a result, the data reveal that the predictor factors have a substantial and positive correlation with Nigeria's carbon footprint. Further data show that healthcare costs have a considerable and beneficial influence on carbon footprint, but social welfare spending is insignificant in this regard. The report recommends the use of green technologies to minimize carbon emissions and enhance the overall health of the population. As a solution, both people and the government's health-care costs will be significantly reduced in the absence of air pollution.

Econometric Relationship between the Agriculture Sector Performance and Economic Growth in Nigeria

The impact of the agricultural sector in maintaining sustainable economic growth has been a continuous major subject of controversy among scholars. Although some scholars claimed that agriculture is the bedrock for any growing economy and thus a precondition for industrialization, others failed to subscribe to this. This study examines the interaction between the agricultural sector and economic growth in Nigeria from 1981 to 2019 using data obtained from the World Bank development indicators. The unit root test indicates that the variables are all integrated after the first difference which informed the decision to adopt the Vector Error Correction Model (VECM) technique. The result of the estimation shows that Agricultural output has a significantly positive relationship with GDP in the long run. Granger causality shows a uni-directional causal relationship running from agricultural output to GDP. This study recommended that since the agriculture sector is a machine for economic growth in Nigeria, efforts to add value to the sector should be made through increased investment by both government and private sectors. Secondly, the linkages between the agriculture sector and other sectors be strengthened to increase the effect of agriculture sector growth on growth across the sectors. This can be achieved through increased productivity and the development of the agriculture value chain.

Do chemical fertilizers, area under greenhouses, and renewable energies drive agricultural economic growth owing the targets of carbon neutrality in China?

Striking an equilibrium between economic and ecological well-being has become a top priority for governments throughout the world. In the modern period, global economies, particularly those of developing nations, highlight the need for attaining eco-friendly growth, in which environmental impact statistics are targeted to be minimized while economic growth is increased. However, in the vast majority of situations, emerging countries like China are prospering economically because they are striving to reduce their environmental imprint. Therefore, this study aims to scrutinize the associations of renewable energy consumption, chemical fertilizer consumption, carbon emissions, and area under greenhouses with agricultural economic growth in China for the attainment of carbon neutrality goals. Secondary annual time series data was gathered from the World Bank's development indicators, British Petroleum's energy statistics, and China's agriculture department from 1980 to 2020. The Autoregressive Distributed Lag (ARDL) bounds testing, along with the novel Kripfganz P-value and the novel Dynamic Autoregressive Distributed Lag (DYARDL) simulations model, were employed in the study. The outcomes of the unit root test confirm the stationary properties of all the study variables. The ARDL bounds testing confirms the cointegration among variables. In both the long and short run, the DYARDL simulations model reveals that increasing renewable energy consumption and greenhouse area enhances agricultural economic growth. Carbon emission intensification cuts agricultural economic growth in the long and short-run. While chemical fertilizer consumption doesn't show a significant long-term or short-term association, with a negative coefficient. Furthermore, the 10% positive and negative shocks of novel DYARDL simulations confirm the results of long-run and short-run analysis. The study's results suggest that the government should impose a ban on fossil fuel use and start using renewable sources of energy instead. This will help the country meet its carbon neutrality goals in the long run, along with sustainable agricultural economic development.

G20 Ülkeleri İçin Feldstein-Horioka Bulmacasının Geçerliliğinin Panel Veri Yöntemi ile Sınanması

Yurt içi ve yurt dışı tasarruflar, gelişmiş veya gelişmekte olan ülkelerde, ekonomik büyümenin ve kalkınmanın temeli olarak görülmektedir. Özellikle 1980’lerden bu yana artan sermaye hareketliliği ile birlikte bu alanda birçok çalışma yapılmıştır. Son dönemlerde sermaye hareketliliği, yurt içi tasarruf ve yatırım arasında güçlü bir ilişkinin varlığını varsayan Feldstein-Horioka (FH) bulmacası temelinde sıkça tartışılmaktadır. Bu çalışmanın amacı 1995-2020 döneminde G20 ülkeleri için, Feldstein-Horioka bulmacasının geçerliliğini incelemektir. Çalışmada kullanılan yurt içi tasarrufların ve yurt içi yatırımların gayri safi yurt içi hasılaya oranı değişkenleri, Dünya Bankasının Gelişmişlik Göstergeleri veri tabanından elde edilmiştir. Bu çalışmada, mevcut literatürün metodolojik sorunları da göz önüne alınarak yenilikçi veri analitik prosedürleri kullanılmıştır. Bu bağlamda, mevcut çalışma, panel verilerin yatay kesit bağımlılığını ve heterojen yapısını dikkate almaktadır. Genişletilmiş Ortalama Grup (AMG) tahmincisi ve Ortak Korelasyonlu Etkiler Ortalama Grubu (CCEMG) tahmin edicilerinden elde edilen FH panel katsayıları sırasıyla 0,261 ve 0,301'dir. Genel sonuçlar, FH bulmacasının G20 ülkeleri için geçerli olmadığını göstermektedir. Bu çalışma, tasarruf ve yatırım ilişkisi temelinde gelecekteki çalışmalara yönelik önemli politika ve uygulama çıkarımları sunmaktadır.

Inflation Rate and Poverty Incidence Nexus in Nigeria: Does Lending Rate Moderates The Effect

Poverty incidence is quite high in developing countries, according to the latest data. However, the element that contributes to and mitigates remains a mystery and a source of disagreement in the literature. As a result, the study re-examined the relationship between Nigeria's inflation rate and poverty incidence. It also established the role of borrowing costs in the relationship between inflation and poverty incidence in Nigeria. The analysis spans 40 years, from 1981 to 2020, and secondary data on poverty, inflation, lending, money supply growth, and taxation were culled from World Bank Development Indicators and the Central Bank of Nigeria (CBN) statistical bulletin, 2020 edition. The study used multiple linear regression and an interactive model to achieve the stated objectives. It was revealed that the inflation rate positively correlates with Nigeria's poverty incidence. Also, it was further revealed that the lending rate substantially moderates the inflation rate's positive effect on Nigeria's poverty rate. Therefore, it was concluded that the lending rate is sufficient to change the adverse impact of inflation on the poverty rate within the study under review. The study recommends that government ensure that inflation is kept at bearable digits while monetary authorities should review upward lending rates to discourage excessive borrowing without productivity.

Do Budgeting Practices Affect Saving Behaviour among Small Scale Entreneurs in Kenya? Evidence from Kisumu Central Constituency

World Bank Development Indicators' most recent data reveals that the nation's Gross Domestic Savings as a proportion of gross domestic product(GDP) was 11.09 percent in 2017, 11.64 percent in 2018, 11.25 percent in 2019 and 12.83 percent in 2020. This shows that the country’s domestic savings is increasing but relatively low. As a result of this the country presents a significant development challenge. Individuals need to learn the basic knowledge of financial areas so that people may make knowledgeable financial decisions about how to earn, spend, save, manage, and invest their money. The purpose of this study was to answer if budgeting practices has an effect on saving behavior among small scale entrepreneurs in Kenya. The study's particular objectives were to; establish the influence of monitoring spending, financial planning and tracking spending pattern on saving behavior among small entrepreneurs. The study was guided by Life Cycle Theory and Financial Literacy Theory. Correlational research design was employed in the study. The target population comprised of 914 registered small entrepreneurs in Kisumu town central constituency who have been in business for at least 2 years. The study adopted Yamane sampling technique and obtained 278 respondents. Open-ended and closed-ended structured questionnaires were employed to gather primary data. To test reliability of the questionnaire, the study piloted 28 respondents who were excluded in the final study. The study then used Cronbach’s Alpha to test reliability. The results showed that budgeting practices (α=0.828) and budgeting practices (α=0.870) all had a strong alpha value of above 0.7 which indicates that the instrument is reliable. The study findings revealed that; monitoring spending was significant (β= .376; p=.000˂ 0.05) that is an increase of 1 unit in monitoring spending causes an increase of .376 units in saving behavior, financial planning was significant (β= .333, p=.000˂0.05) that is an increase of 1 unit in financial planning causes an increase of .333 units in saving behavior and tracking spending pattern was also significant (β= .179, p= .000˂0.05) that is an increase of 1 unit in monitoring spending terms causes an increase of .179 units in saving behavior. There was a strong positive and significant association between budgeting and saving behavior thus rejecting the null hypothesis. The study concludes that budgeting practices enhances saving behaviour of small entrepreneurs in Kenya and recommends that small scale entrepreneurs should practice all aspects of budgeting which includes monitoring spending, financial planning and tracking spending pattern should be among small scale entrepreneurs in Kenya. This will enable them to compare what they have spent with regard to what they had planned thereby helping them improve their saving behavior.

Financial Deepening and Small and Medium Scale Enterprises (SMEs) Output in Nigeria

The study examined the relationship between financial deepening (FD) and entrepreneurial growth (EG) in Nigeria for the period of 1986-2021 (36years). This was done in respect to the measures of FD, namely; Ratio of Broad Money Supply to Gross Domestic Product (M2/GDP), Ratio of Private Sector Credit to Gross Domestic Product (PSC/GDP), Ratio of Market Capitalization to Gross Domestic Product (MCAP/GDP) and Ratio of Loans to Small and Medium Scale Enterprises to Gross Domestic Product (LSMSE/GDP) in relation to EG was proxied by Small and Medium Scale Enterprises Output (SMSEO) in Nigeria. The data for the study was sourced from Central Bank of Nigeria (CBN) Statistical Bulletin and World Bank Development Indicators. Then, the stationary and normality tests was carried out, followed by the descriptive statistics, correlation and multiple regression tool of analysis with the aid of E-VIEW 9.0 statistical package. The results showed that M2/GDP, PSC/GDP, MCAP/GDP and LSMSE/GDP have positive and negative significant effect on SMSEO in Nigeria. Hence, the study indicated that FD had a considerable impact on EG in Nigeria. The report proposed that the CBN compel deposit money Banks (DMBs) to extend greater loan facilities to entrepreneurs (private sector), including young graduates and new entrepreneurs, without collateral to enable them to participate in successful businesses. In addition, venture capital firms should be developed to aid in EG, resulting in the production of value and wealth.

Green Fiscal Policy Mechanisms for a Low–Carbon Ecosystem: A Developing Country Assessment

Due to the obvious intensity of carbon footprint in developing nations' vicinity, the United Nations has developed a guidebook that focuses on carbon taxes as one of the solutions to industrial contamination in emerging regions. Green fiscal policy is a major topic of discussion in the public debate over climate change around the universe. This study investigates the influence of fiscal policy measures in reducing carbon emissions in the ecosystem. The analysis spans the years 2000 to 2020 and makes use of World Bank Development Indicators data on CO₂ emissions in million metric tons. The data on tax income are taken from the Federal Inland Revenue Service in billions of Naira, while the data on government investment and debt are derived from the Central Bank of Nigeria Statistical Bulletin. After establishing the adequacy and appropriateness of the datasets and model, the study employs econometric tool of multiple regression approach to examine the effect of fiscal tools on climate change improvement. The results suggest that government funding has a negative intangible impact on climate change mitigation. Further findings reveal that tax income collection is positively irrelevant, however debt has a positive influence on CO₂ emissions reduction. The study strongly suggests government drive for green fiscal policy which should incorporate efficient and cost-effective green-financing options, carbon taxation, environmentally friendly government budgets and investments.

Assessment of Green Total Factor Productivity on the Environmental Sustainability of Pakistan: Insights through Growth Accounting Framework

The research investigates the concept of green total factor productivity (TFP), with economic growth leadings towards the sustainable production. The paper investigates the CO2 interventions for total factor productivity for government, and policy makers to reduce carbon dioxide emissions and enhance productivity. The paper analysis is preceded using annual year’s data for gross domestic product (GDP), capital growth, labor growth, and carbon dioxide emanations. The data is grabbed from World Bank development Indicators (WDI) online database for year 1975 to 2019. The analysis is done by Growth Accounting Framework and MALMQUIST Luneberger Index. Total Factor Productivity is analyzed in two perspectives i.e. with carbon dioxide and without carbon dioxide emissions. The findings indicated that there is little contribution of TFP without carbon dioxide emissions which is -0.23. The value of TFP with carbon dioxide emissions gives an average per year value of -20.41 which is -0.41. The average growth in carbon dioxide is 2.94 averages per year. The highest carbon dioxide growth is 0.9. The highest value for growth development is -26.86. MALMQUIST Index concludes that Pakistan needs to work for the technological developments. The paper examined that green total factor productivity improves economic growth and reduces the carbon emission in the country. The policymakers and top management must employ the sustainable activities to retain the better growth with economic development in the near future.
 

Analyzing the Impact of Inward FDI and Economic Growth on CO2 Emissions of Ukraine

The study investigated the impact of foreign direct investment and economic growth, upon carbon emissions of Ukraine. The annual data for the study has been extracted from the World Bank Development Indicators for the period 1990 to 2019. The study variables are foreign direct investment, economic growth, and carbon emissions. We started our analysis based on the autoregressive distributed lag (ARDL) model as being use quite extensively in the existing literature. However, we faced the issue of multicollinearity, then we applied the Ordinary Least Square technique and system generalized method of moments as alternative estimation techniques. The main analysis is based on the Ordinary Least Square technique, whereas robustness has been carried out under the system’s generalized method of moments. Both estimation techniques confirmed the significant and positive relationship between our study’s variables. The results indicate that in Ukraine the inflows of foreign direct investment and economic growth have led to higher carbon emissions.

Private Saving in Ghana: The Combined Efforts of Financial Development, Interest Rates, and Inflation

Understanding private saving behaviour of the citizenry is crucial for informed policy decisions in an economy. The reason is not far-fetched; economies gain sustained growth from investment through saving. However, it does appear much of the available literature is on aggregate private savings rather than on private saving behaviour. This study updates the literature by looking at the combined effects of financial development, interest rate and inflation on private saving behaviour among Ghanaians. Data for the study were obtained from the World Bank Development Indicators between 1980 and 2019. We employed Johansen Cointegration Test; attempts are made to ascertain the existence of a long-run relationship among variables using the Vector Autoregressive (VAR) Model. The study confirms a significant positive relationship between private saving behaviour and financial sector development. This partly explains the relevance of deepening the financial sector through reductions in costs of performing transactions and initiating contracts to encourage private saving through improved propensity to save by the old and to rake in new entrants. A reliance on macroeconomic variables to forecast the behaviour of private saving enjoins policy decision makers to consider the implications of their decisions for private saving. Among the recommendations are, lower borrowing costs across the economy, resulting in increased investment and consumption spending, and hence economic recovery only in times of stagnation.

Effects of public and external health spending on out-of-pocket payments for healthcare in sub-Saharan Africa.

Financing healthcare in sub-Saharan Africa (SSA) is characterized by high levels of out-of-pocket (OOP) payments for healthcare. This renders many individuals vulnerable to poverty and deviates from the Universal Health Coverage (UHC) goal of providing financial protection for healthcare. We examined the relative effects of public and external health spending on OOP healthcare payments in SSA. We used the system generalized method of moments (GMM) estimator and data from the World Bank's World Development Indicators for 43 SSA countries from 2000 to 2017. The results show that reductions in OOP payments are higher with increases in public spending than external spending. This means increases in public health spending, compared with external health spending, will increase the pace towards achieving the financial protection goal of UHC in SSA. But since government spending is limited by fiscal space and parliamentary approval, public health spending through social health insurance might provide a regular means of financing healthcare to speed up achieving the financial protection goal in SSA countries.