Health Care Expenditure-Gdp Nexus In Sub-Saharan Africa

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Bernhard O. ISHIORO, PhD , Owen Affor MAKU, PhD


This study provides a generalized review and survey of the progress and advances in the literature on health spending-Gross Domestic Product (GDP) long-term  nexus. Several attempts have been made since Alma-Ata Declaration in 1978 and recently, the Maputo Plan of Action 2016-2030; but in 2022, what is the long-term impact of  spending on health on the GDP of sub-Saharan Africa? SSA aggregate data were sourced  and extracted from  the World Bank Database(World Development Indicators) and ,innovative long-term analysis was applied. The study observed that there is a long-term association between the components of health spending and GDP, implying the confirmation of the long-run role of health spending in stimulating  the growth of GDP or GDP facilitating the performance of health spending in SSA. The major conclusion drawn from  the review of related studies is that there are conflicting findings/results, and there is neither a  consensus nor common stance on the link between health spending  and GDP in SSA. The implications of these conclusions and empirical observations are: Authors studying health  spending- GDP nexus should apply suitable econometric techniques with special consideration of the peculiar features of the data generated  from the economies studied. Furthermore, new variables should be accommodated in the models and modelling process as a deviation from previous econometric traditions  to avoid twisted empirical outcomes and conclusions.

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