Journal of Economics and Financial Analysis, 8 (2), pp. 47-67, [2024]
URI: https://ojs.tripaledu.com/jefa/article/view/95/105

Health Expenditure and Infant Mortality in Sub Saharan Africa: Evidence from Threshold Regression


Olabisi Onabanjo University, Nigeria


Olabisi Onabanjo University, Nigeria


Olabisi Onabanjo University, Nigeria



Abstract

This study aims to determine the impact of healthcare spending on infant mortality rates in 45 sub-Saharan African nations from 2000 to 2020. Utilizing threshold regression, it reveals that lower regime dependents exhibit a decrease in public health spending below a certain threshold, leading to a positive correlation between total public health expenditure and infant mortality rates. Conversely, external medical funding significantly reduces infant mortality in higher threshold regimes but not in lower threshold regimes.
Private health expenditure negatively and significantly impacts both lower and higher income groups, placing undue pressure on residents. However, the study does not fully account for sociocultural factors influencing infant mortality in the region. The research highlights that direct healthcare costs in the region meet the minimum threshold for health expenditure and are inversely related to infant mortality rates.

Keywords

Threshold Regression; Health Expenditure; Infant Mortality; Healthcare; Sub Saharan Africa.

JEL Classification

A13, I15, I18, O55.

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