HEALTH EXPENDITURE, LIFE EXPECTANCY, FERTILITY RATE, CO2 EMISSIONS AND ECONOMIC GROWTH DO PUBLIC, PRIVATE AND EXTERNAL HEALTH EXPENDITURE MATTER

Abstract

This article aims to empirically detect the dynamic nexus relationships between total and disaggregated health expenditure, economic growth, fertility rate, life expectancy, and CO₂ emissions in six middle-income MENA countries, namely Algeria, Egypt, Jordan, Lebanon, Morocco, and Tunisia, during the period 2000–2019. We employ an advanced econometric technique, dynamic panel data system analysis, which allows for the estimation of time-invariant variables. The results show a significant and robust positive association between health expenditure and economic growth on the one hand, and negative associations between economic growth and fertility rate, life expectancy, and CO₂ emissions on the other hand. Moreover, a negative nexus between fertility rate and life expectancy has been detected. Public, private, and external health expenditures affect economic growth positively and significantly, while they affect fertility rate negatively, except for public health expenditure, which appears to encourage fertility. This indicates that disaggregated health expenditure matters for analysis. Furthermore, the negative impact of CO₂ emissions on growth and life expectancy can offset the positive effects of health expenditure on both growth and life expectancy. A series of recommendations are introduced, such as increasing the share of health in public spending, improving the effectiveness of government health expenditure, and controlling pollution and CO₂ emissions. Furthermore, health spending, policies, and systems must function effectively to mitigate the impacts of high fertility in marginalized, rural, and vulnerable populations and areas. This article highlights notable issues in the field, such as high fertility rates, limited government health expenditure, high employment, and low awareness of pollution and environmental degradation.

Data:
Received: 21 Aug 2022
Revised: 16 Oct 2022
Accepted: 10 Nov 2022
Published: 24 Nov 2022