As is known to all,
a healthy society and active workforce are the key factors of sustainable
productivity and economic growth. And in nowadays’ world, people are still the
main workforce in all kinds of industries. So the health of people is always
the focus of different countries and areas. And with the development of
society, more and more governments, organizations and individuals have paid
more attention to health problems. So the annual health expenditure of each
country also attracts a lot of attention.
Health expenditure,
an important part of the financial budget and expenditure of each country and
area, mainly includes two parts: private health expenditure and public health
expenditure. The private health expenditure usually consists of direct
household (out-of-pocket) spending, private insurance, charitable donations,
and direct service payments by private corporations; while public health
expenditure contains recurrent and capital spending from government (central
and local) budgets, external borrowings and grants (including donations from
international agencies and nongovernmental organizations), and social (or
compulsory) health insurance funds.
And according to
some surveys, it can be found that the health expenditure has been increased
year after year in many countries. Then what’s the effect of this change? Does
it have an influence on the economic growth of their countries?
Actually, the
developing countries and areas where resources are very scarce paid less
attention to the study of health expenditure, so studies from these areas would
be of great importance. Recently, an example is provided to confirm the
relationship between these two variables. The researchers used the system General Method of Moments (GMM) technique to analyze the relationship
base on the related data of Sub-Saharan Africa over the period 1995-2014. And
the final result shows that there is a positive significant relationship between
health expenditure and economic growth.
In summary, the increase of health expenditure and the implementation
of more health care problems would improve the health of people and living
environment, make effective use of workforce, and attract more foreign
investment, which are beneficial for the growth of economy.
Article by Badamassi Aboubacar and Deyi
Xu, from China University of Geosciences, Wuhan, China.
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