The main objective of this paper is to test the impact of public health spending on infant health taking into account the role that institutional quality can play. We use a two-step system dynamic GMM method for 93 developed and developing countries over the1995–2015 period. Our main findings show that there is a clear positive and significant effect of health expenditure on infant mortality only for high-income countries, whereas for lower, lower-middle, and upper-middle-income ones, health spending does not have a significant impact on infant health status. Our findings show also that there is a certain threshold level that these groups must achieve to make government health spending (% GDP) positively affect infant mortality rates. This level is estimated at about 7%. Finally, estimations demonstrate also that institutional quality plays an important and significant role in mediating the relationship between health spending and IMR’s.
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Dhrifi, A. Public Health Expenditure and Child Mortality: Does Institutional Quality Matter?. J Knowl Econ 11, 692–706 (2020). https://doi.org/10.1007/s13132-018-0567-4
- Health expenditure
- Infant mortality
- Institutional quality