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JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Effect of Health Expenditure on per capita GDP Growth in Developing Countries

Author(s): Elizabeth N. Appiah

Citation: Elizabeth N. Appiah, (2017) "Effect of Health Expenditure on per capita GDP Growth in Developing Countries ," Journal of Applied Business and Economics, Vol. 19, Iss.10,  pp. 93-104

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper examines the relationship between health expenditure and per capita Gross Domestic Product

(GDP) growth in developing countries. The paper further explores whether the impact of health

expenditure is different for developing countries as a whole compared with countries in Sub-Saharan

Africa. Using the Solow growth model, panel data, and the ‘system’ GMM estimator, I find that economic

growth in developing countries, after controlling for other factors is influenced by health expenditure, but

the magnitude is slightly higher for SSA. The paper contributes to the literature by addressing the

importance of health policies on economic growth in developing countries.