Determinants of health expenditure from global perspective: A panel data analysis
Keywords:health expenditure, economic performance, global economy, panel data analysis, random effect model, fixed effect model, personal remittances, socio-economic factors
A prominent enhancement in health expenditure is a severe apprehension for the whole world because of the increasing cost of health. Consideration of various aspects that are playing role in the increase of health expenditure need to be considered. Health is one of the significant parts of the world, therefore, improvement in health status has become the main objective of the nations and a top leading goal of the Sustainable Development Goals (SDGs) and Millennium Development Goals (MDGs). The main goal of the present study is to investigate the worldwide, and income-based categorized countries (developed, developing, and transitional countries) macroeconomic determinants of health expenditure. The aim is to estimate the health expenditures, and its impact on demographic, economic, and environmental determinants. For the empirical analysis, the data was retrieved from the World Bank, covering the time span 2000-2016 for developed, developing, and transitional countries. The results of the study concluded that macroeconomic variables significantly affect health expenditures. Moreover, personal remittances have a dual effect on health expenditure, i.e. a positive impact on transitional economies, while a negative impact on developing economies. In the same way, CO2 emission has a negative impact on worldwide, developed countries.
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