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n Journal of Public Administration and Development Alternatives (JPADA) - Government health expenditure and health outcomes in Malawi : does governance matter?

Volume 3 Number 1-1
  • ISSN : 2415-5446

Abstract

The need for good governance is an issue that has taken center stage globally. More pertinent is the role of governance in affecting the efficiency of public health spending on health outcomes, in an economy. Understanding how governance affects the efficacy of public health expenditure is important for health development. However, Malawi, as a country, lacks specific studies that should inform policies on these aspects, and which uses country level data. The main objective of this article is to assess the links between public health spending, governance and health outcomes (infant mortality). The role of governance is measured using the Corruption Perception Index. In this article, we assess how it affects the efficacy of public spending in improving health development outcomes. Our analysis shows, empirically, that the differences in the efficacy of public health spending can be largely explained by the quality of governance. Firstly, corruption worsens health outcomes (hence poor health development); secondly, increased health expenditure lowers child mortality rates. However, public health spending worsens health outcomes when there is poor governance. In other words, corruption indeed reduces the effectiveness of public health spending on infant mortality. The implication of these findings is that in order to improve health development, there is indeed a need for improvement in the state of governance.

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/content/journal/10520/EJC-11d9b5049b
2018-09-01
2019-10-14

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