Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014, 2(2), 35-40
DOI: 10.12691/jbe-2-2-1
Open AccessArticle

Determinants of Public Health Expenditure in Ghana: A Cointegration Analysis

Micheal Kofi Boachie1, , Isaac Osei Mensah1, Pauline Sobiesuo1, Mustapha Immurana2, Abdul-Aziz Iddrisu3 and Ishaq Kyei-Brobbey3

1Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana

2Department of Accounting Studies Education, University of Education, Kumasi, Ghana

3Department of Accountancy and Accounting Information Systems, Kumasi Polytechnic, Kumasi-Ghana

Pub. Date: May 03, 2014

Cite this paper:
Micheal Kofi Boachie, Isaac Osei Mensah, Pauline Sobiesuo, Mustapha Immurana, Abdul-Aziz Iddrisu and Ishaq Kyei-Brobbey. Determinants of Public Health Expenditure in Ghana: A Cointegration Analysis. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2014; 2(2):35-40. doi: 10.12691/jbe-2-2-1

Abstract

This paper examines the determinants of public healthcare expenditure in Ghana using annual time series data from 1970 to 2008. The paper explored the stationarity and cointegration properties between public healthcare expenditure, and environmental and socio-economic indicators using ERS optimal point unit root test, and Engle-Granger cointegration tests. By this, we examined the long-run impacts of real GDP, CO2 emissions, crude birth rate, life expectancy, inflation, and urbanization on public healthcare expenditure in Ghana. FMOLS technique was applied to estimate the long run multipliers of public health expenditure model. The results of the paper show that public health expenditure in Ghana is positively affected by real GDP, policies that aim to improve healthiness of the population as measured by life expectancy and crude birth rates. We find strong evidence that healthcare is a necessity in Ghana. These variables need more and critical attention to achieve improved healthcare.

Keywords:
ghana public health expenditure cointegration life expectancy crude birth rate

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