The Effect of Health Expenditure on Health Outcomes at the Macro Level: The Indian Experience
: Health challenges such as maternal mortality, under-five mortality and infant mortality continue to confront most countries in the world with India not being an exception. Given this, one major tools that governments and stakeholders have employed in tackling these health challenges is health expenditure. However, empirically at the macro level especially in India, little is known about the impact of health expenditure on health outcomes-proxied by maternal mortality, under-five mortality, infant mortality and life expectancy in this study. Therefore this study used times series data from 1995-2014 whiles employing the Ordinary Least Square (OLS) regression and the Breusch-Pagan / Cook-Weisberg test for heteroskedasticity to investigate the effect of health expenditure on health outcomes in India. The study found that, total, public and private health expenditures did not have any statistically significant effects on health outcomes in India. Hence, policy makers and other players in the health sector should make sure that health expenditure is actually focused on influencing positive health outcomes.
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