MPDD Working Paper (WP/11/19) Impact of Health Expenditure on Achieving the Health-related MDGs

MPDD Working Paper (WP/11/19) Impact of Health Expenditure on Achieving the Health-related MDGs

Date: 
Wednesday, August 31, 2011
Type: 
Working paper series
Abstract

This paper analyses the effect of public and private health expenditures on the achievement of
health-related MDGs. It finds that three quarters of the variation of health-related MDG
indicators can be explained by public and private health expenditure per capita when controlling
for levels of income and demographic factors such as age dependency ratio, urbanization and
population density. In addition, the analysis finds that marginal gain in health performance is
higher for countries with low per capita public health expenditures. The paper also estimates
country’s potential for increasing health expenditure and suggests that some of the countries
that are behind in their progress towards the achievement of the MDGs have the potential to
complement the shortfall through increasing their public health expenditure to levels that are
compatible with their per capita income and demographic structure.

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