Health expenditure and economic development in low-and middle-income countries

The purpose of this study is to examine whether health expenditure has any significant impact on economic development in low- and middle-income countries (LAMICs). We employed static panel data analysis involving 67 countries which were split into two groups: low-income countries and middle-income countries, and the time frame is spanning from 2010 to 2014. Both groups were analysed separately to measure the different impacts of health expenditure on the countries’ economic development. The results indicate a significant relationship between health expenditure and economic development for both groups of countries, whereby the impact was found to be slightly greater in middleincome countries compared to low-income countries. This finding denotes that the barrier for economic development in LAMICs is due to the considerably low allocation invested into health sectors, accompanied by the burden of many health-related problems. Therefore, strengthening the health sector by boosting health expenditure should be another priority in LAMICs to become developed countries

The impact of human development on cigarettes consumption in Malaysia

This paper estimates the impact of human development indicators on cigarette consumption in Malaysia from 1980 to 2012. To determine the long run relationship among the variables, ARDL bound testing approach is applied since the tested variables are a mixed of I(0) and I(1). Results show that life expectancy, -16.3828 is negatively related and highly significant in determining the cigarette consumption in Malaysia. Even though the other human development indicators are insignificant in this study, an increase in the level of life expectancy is indirectly due to better living standard and improved education. This study has an interesting implication for Malaysia’s policy in controlling cigarettes consumption. Higher taxation on cigarettes may not the only effective policy, but greater emphasis on factors that lead to improvement in life expectancy will likely reduce cigarette consumption in Malaysia

Cigarettes demand and tax strategy in Malaysia

Taxation is one of the effective tools to discourage smoking. Increase of cigarette tax has a significant effect in generating additional revenue to the government due to the inelastic nature of the cigarette. In this study, the estimated price elasticity of demand for cigarettes in Malaysia is -0.28 and -0.49 in short run and long run; respectively. Hence, demand for cigarettes is inelastic or less responsive to the changes in price. Therefore, estimating the optimal cigarette tax rate is one of the strategies to ensure that the price of cigarette, after tax, is high enough to reduce consumption of cigarette. At the same time, it generates maximum tax revenue for the government. Using yearly time series data from 1980 until 2009, a Fully Modified Ordinary Least Square (FMOLS) method is applied to estimate the demand elasticity of cigarettes and the optimal cigarettes excise tax. In this study, the estimated optimal real excise tax rate is 0.186 sen per stick which is 27.4% higher than the real excise tax in 2009. The increase in real revenue earned after imposing an optimal excise tax is 24.25% in the short run and 21.89% in the long run. Consequently, the expected reduction in consumption per capita of cigarette is 10.41% in the short run and 12.88% in the long run. Maximum revenues from the optimal cigarettes tax can be earmarked to fund a specific tobacco control policy in Malaysia

Cigarettes demand and tax strategy in Malaysia

Taxation is one of the effective tools to discourage smoking. Increase of cigarette tax has a significant effect in generating additional revenue to the government due to the inelastic nature of the cigarette. In this study, the estimated price elasticity of demand for cigarettes in Malaysia is -0.28 and -0.49 in short run and long run; respectively. Hence, demand for cigarettes is inelastic or less responsive to the changes in price. Therefore, estimating the optimal cigarette tax rate is one of the strategies to ensure that the price of cigarette, after tax, is high enough to reduce consumption of cigarette. At the same time, it generates maximum tax revenue for the government. Using yearly time series data from 1980 until 2009, a Fully Modified Ordinary Least Square (FMOLS) method is applied to estimate the demand elasticity of cigarettes and the optimal cigarettes excise tax. In this study, the estimated optimal real excise tax rate is 0.186 sen per stick which is 27.4% higher than the real excise tax in 2009. The increase in real revenue earned after imposing an optimal excise tax is 24.25% in the short run and 21.89% in the long run. Consequently, the expected reduction in consumption per capita of cigarette is 10.41% in the short run and 12.88% in the long run. Maximum revenues from the optimal cigarettes tax can be earmarked to fund a specific tobacco control policy in Malaysia

The impact of health care expenditure and infectious diseases on labour productivity performance in Africa: do institutions matter?

This study was rooted from the findings that for many years infectious diseases remain the major cause of death around the globe especially in Africa. Economic theory also predicts among others that HIV/AIDS reduces labour supply and productivity, and the GDP of Africa declines by 2-4% annually. In addition, institution is one of the reasons for slower growth in Africa. The study, therefore, examined the impact of health care expenditure per capita and infectious diseases such as HIV/AIDS and tuberculosis (TB) on labour productivity performance in Africa using System GMM Estimation methods for 50 panels of African countries from 2002-2011. The results show that health-care expenditure per capita is positive but insignificant to labour productivity performance in the region. The results also confirm the negative impact of infectious diseases on labour productivity performance in the region. Government effectiveness and control of corruption are positive and significant to the improvement of health care expenditure in Africa. In addition, the study also revealed that political instability and conflict also contribute positively to the spread of infectious diseases in the region. Thus, it is recommended that African governments and health-related development partners increase the financial amount allocated to the health sector. At the same time, more efforts are needed to curb and control the spread of infectious diseases through strengthened institutions to improve health-care expenditure in the region

The relationship between output And unemployment in Malaysia: does Okun’s Law exist?

Unemployment is an important issue in developing economies. High unemployment means that labour resources are not being used efficiently. In the macroeconomic framework there is a well known relationship called Okun’s Law, which states that the negative relationship between movements of unemployment rate and real GDP can be determined. This paper examines whether there exist an Okun-type relationship between output and unemployment in the Malaysian economy. The empirical results show that the negative relationship between output and unemployment is present. Some policy implications are discussed at the end of the paper

Export of Agricultural Raw Materials, Exchange Rate and Economic Growth in Nigeria: An ARDL Approach to Cointegration

This paper investigated the long run cointegration between export of agricultural raw materials, exchange rate and economic growth in Nigeria. An annual time series data was used for the period of 32 years from 1981 to 2013, and Auto Regressive Distributed Lags (ARDL) cointegration approach was employed in achieving the objective of the study. The result revealed that, both short run and long run models were cointegrated. Agricultural raw material export and exchange rate are instatistically and negatively related to GDP with the exception of exchange rate. Therefore, this paper suggested as part of its policy recommendation that, the Federal Republic of Nigeria in line with  its transformation agenda should focus more on human capital, infrastructural and agricultural sector development, and not only increase export of agricultural raw materials, but also encourage exportation of processed agricultural products for achieving inclusive economic growth and development. Keywords: Agricultural raw materials export, Exchange rates, GDP, ARDL cointegration, Nigeria.

Technical efficiency of secondary health care service delivery in the Gambia

This study is conducted with specific objectives: a) To measure the technical and scale efficiency of the health centers in the Gambia; b) To estimate the amounts of output increases and/or input reductions that would be required to make inefficient health centers more efficient. The study uses output-oriented variable return to scale Data Envelopment Analysis (DEA) method. The findings show that 9 (22%) health centers are efficient, 32 (78%) health centers are technically inefficient with an average technical efficiency score of 65% and standard deviation (STD) of 26%. Furthermore, 4 (10%) health centers are scale efficient, 37 (90%) health centers scale inefficient with an average scale efficiency score of 87% and standard deviation (STD) of 12%.The widespread inefficiency across the entire secondary health care service delivery system in the Gambia is alarming and the results suggest that health centers are using resources more than they actually need

An optimal cigarette tax in Malaysia

Determination an optimal cigarette excise tax is essential for the government to ensure that price of cigarette after tax is high enough to reduce consumption of cigarette and generate maximum tax revenue to the government. It is timely that government should consider having a specific tobacco control policy funded from earmarking of revenues from cigarette tax increases or “sin tax”. The estimated regression of optimal cigarette tax is based on Laffer curve equation. In this study, the estimated optimal real excise tax rate is 0.216 sen or 0.262 nominal excise tax rate per stick, which is 16.5% higher than the excise tax rate in 2009. The increase in real revenue that can be earned after imposing an optimal excise tax is 18% and 23.6% in the short run and long run respectively. The expected reduction in consumption per capita for cigarette is 6.4% in the short run and 11.6% in the long run

A systematic review of micro correlates of maternal mortality

In the year 2000, the World Health Organization launched the Millennium Development Goals (MDGs) which were to be achieved in 2015. Though most of the goals were not achieved, a follow-up post 2015 development agenda, the Sustainable Development Goals (SDGs) was launched in 2015, which are to be achieved by 2030. Maternal mortality reduction is a focal goal in both the MDGs and SDGs. Achieving the maternal mortality target in the SDGs requires multiple approaches, particularly in developing countries with high maternal mortality. Low-income developing countries rely to a great extent on macro determinants such as public health expenditure, which are spent mostly on curative health and health facilities, to improve population health. To complement the macro determinants, this study employs the systematic review technique to reveal significant micro correlates of maternal mortality. The study searched MEDLINE, PubMed, Cumulative Index to Nursing and Allied Health Literature (CINAHL), Science Direct, and Global Index Medicus of the World Health Organization. Our search was time framed from the 1st January, 2000 to the 30th September, 2016. In the overall search result, 6758 articles were identified, out of which 33 were found to be eligible for the review. The outcome of the systematic search for relevant literature revealed a concentration of literature on the micro factors and maternal mortality in developing countries. This shows that maternal mortality and micro factors are a major issue in developing countries. The studies reviewed support the significant relationship between the micro factors and maternal mortality. This study therefore suggests that more effort should be channelled to improving the micro factors in developing countries to pave the way for the timely achievement of the SDGs' maternal mortality ratio (MMR) target