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
Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport.
2014,
Vol. 2 No. 2, 35-40
DOI: 10.12691/jbe-2-2-1
Copyright © 2014 Science and Education PublishingCite this paper: Micheal Kofi Boachie, Isaac Osei Mensah, Pauline Sobiesuo, Mustapha Immurana, Abdul-Aziz Iddrisu, 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.
Correspondence to: Micheal Kofi Boachie, Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana. Email:
mkboachie@gmail.comAbstract
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.
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