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Does Quality of Government Matter in Public Health? The Case of Sri Lanka

Kajenthini Ganeshamoorthy
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Kajenthini Ganeshamoorthy: North Island College, Canada

International Journal of Research and Innovation in Social Science, 2023, vol. 7, issue 6, 127-137

Abstract: Good governance can improve government expenditure efficiency and lead to better human development outcomes in education and health. The paper aims to shed light the influence of governance in determining public spending’s efficacy in improving health outcomes in Sri Lanka. To find the study objectives, Augmented Dickey-Fuller unit root test, Johansen’s co-integration tests, and the Vector Error Correction Model were employed using time series data. The results confirmed that government expenditure on health without its interaction of governance indicators positively influences health status in the long term. Likewise, government expenditure on health and its interaction with governance indicators, namely corruption and government effectiveness, negatively influences health status in the long term in Sri Lanka. In contrast, government expenditure on health and its interaction with the rule of law positively impact health status. Besides, in the short run, government health expenditure positively impacts health status while governance indices with government expenditure were not influenced the health status. In Sri Lanka, where the effectiveness of public spending on health with the interaction of governance is comparatively low. Therefore, the current study stresses that the governance of Sri Lanka should be improved to enhance the effectiveness of public spending with good governance in order to improve the health outcomes.

Date: 2023
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