DISAGGREGATED HEALTH FINANCING, GOVERNANCE AND INFANT MORTALITY IN SUB-SAHARAN AFRICA

Pius Gamette

Working Papers from African Economic Research Consortium

Abstract: Despite evidence on the importance of disaggregated components of health financing (public, private and external health aid), little is known about the role governance performs in the relationship between disaggregated health financing components and infant mortality. Using panel data of 42 sub-Sahara African countries (SSA) for the period 2000-2016, this study analyses the differential effect of disaggregated components of health financing on infant mortality in SSA as well as across its sub-regional groups. The study also examines the confounding effect of governance in the relationship between disaggregated components of health financing and infant mortality. The study uses the Generalised Method of Moment (System-GMM) technique along with the Principal Component Analysis (CPA) to construct a governance index from three governance indicators (government effectiveness, control of corruption and regulatory quality). The study finds that each disaggregated component of health financing has a significant negative effect on infant mortality in SSA, albeit there exists regional disparities across SSA. The study also finds that governance has negative and significant confounding effects on the relationship between each disaggregated health-financing component and infant mortality in SSA. In terms of policy recommendations, Ministries of Health in respective SSA countries should strengthen partnership with foreign donors in the fight against infant mortality. Moreover|| audit departments of Ministries of Health in respective SSA countries should strengthen regulations that guide health expenditure to have higher reduction in infant mortality level.

Date: 2021-05-06
Note: African Economic Research Consortium
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