Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness
The study investigated the moderating role of public indebtedness on the relationship between per capita income and government healthcare financing in Sub-Saharan Africa (SSA). Based on panel data for 35 SSA countries over the period 2010 – 2020, the panel quantile Autoregressive Distributed Lag (AR...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2024-12-01
|
| Series: | Scientific African |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2468227624003302 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846113717711798272 |
|---|---|
| author | Tamisai Chipunza Lungile Ntsalaze |
| author_facet | Tamisai Chipunza Lungile Ntsalaze |
| author_sort | Tamisai Chipunza |
| collection | DOAJ |
| description | The study investigated the moderating role of public indebtedness on the relationship between per capita income and government healthcare financing in Sub-Saharan Africa (SSA). Based on panel data for 35 SSA countries over the period 2010 – 2020, the panel quantile Autoregressive Distributed Lag (ARDL) model with dynamic fixed effects was applied. Robustness analysis was performed using the panel Fully Modified Ordinary Least Squares (FMOLS) approach. It was established that income per capita positively influenced per capita government health spending while the debt burden had a negative effect. The coefficient for the interaction term was negative and significant, affirming the hypothesis that indebtedness distorts the positive impact of per capita income on government healthcare financing. To mitigate the adverse effects of indebtedness on healthcare financing, there is a need for SSA countries to maintain public debt at appropriate levels and allocate borrowed funds to projects that stimulate economic growth. |
| format | Article |
| id | doaj-art-61fcd49643c943f4b86b4ddb36a59d9c |
| institution | Kabale University |
| issn | 2468-2276 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Scientific African |
| spelling | doaj-art-61fcd49643c943f4b86b4ddb36a59d9c2024-12-21T04:29:02ZengElsevierScientific African2468-22762024-12-0126e02388Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtednessTamisai Chipunza0Lungile Ntsalaze1Corresponding author.; College of Business and Economics, University of Johannesburg, Johannesburg, South AfricaCollege of Business and Economics, University of Johannesburg, Johannesburg, South AfricaThe study investigated the moderating role of public indebtedness on the relationship between per capita income and government healthcare financing in Sub-Saharan Africa (SSA). Based on panel data for 35 SSA countries over the period 2010 – 2020, the panel quantile Autoregressive Distributed Lag (ARDL) model with dynamic fixed effects was applied. Robustness analysis was performed using the panel Fully Modified Ordinary Least Squares (FMOLS) approach. It was established that income per capita positively influenced per capita government health spending while the debt burden had a negative effect. The coefficient for the interaction term was negative and significant, affirming the hypothesis that indebtedness distorts the positive impact of per capita income on government healthcare financing. To mitigate the adverse effects of indebtedness on healthcare financing, there is a need for SSA countries to maintain public debt at appropriate levels and allocate borrowed funds to projects that stimulate economic growth.http://www.sciencedirect.com/science/article/pii/S2468227624003302Debt burdenHealth expenditurePer capita GDPPopulation structurePublic debt |
| spellingShingle | Tamisai Chipunza Lungile Ntsalaze Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness Scientific African Debt burden Health expenditure Per capita GDP Population structure Public debt |
| title | Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness |
| title_full | Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness |
| title_fullStr | Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness |
| title_full_unstemmed | Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness |
| title_short | Income per capita and government healthcare financing in Sub-Saharan Africa: The moderating effect of indebtedness |
| title_sort | income per capita and government healthcare financing in sub saharan africa the moderating effect of indebtedness |
| topic | Debt burden Health expenditure Per capita GDP Population structure Public debt |
| url | http://www.sciencedirect.com/science/article/pii/S2468227624003302 |
| work_keys_str_mv | AT tamisaichipunza incomepercapitaandgovernmenthealthcarefinancinginsubsaharanafricathemoderatingeffectofindebtedness AT lungilentsalaze incomepercapitaandgovernmenthealthcarefinancinginsubsaharanafricathemoderatingeffectofindebtedness |