Advertisement

Health Expenditures Across Major States of India: Issues of Convergence and Equality

  • Ramesh Chandra DasEmail author
  • Kamal Ray
  • Utpal Das
Chapter
  • 437 Downloads
Part of the India Studies in Business and Economics book series (ISBE)

Abstract

Health expenditure in India has become an important policy variable so far as the concept of social sector development is concerned. The distributional aspect of such expenditure is again another important side of the overall development of a country or state. The present paper tries to examine whether the major states of India are converging in terms of per capita health expenditure out of the state-wise capital expenditure provided by the central government in the head of medical and public health for the period 1990–1991 to 2009–2010. If they are found to be converging, then the study further explores on whether there is falling tendency of the dispersion and inequality of health expenditure across the states. Using the data of Reserve Bank of India on Capital Expenditure of different states and Barro and Sala-i-Martin (1992) method of convergence, the study reveals that there is absolute β convergence and σ results show the tendency of divergence among the states. The health expenditure concentration and inequality has been quantified by Gini coefficient and Theil index which show that there is rising inequality up to 2003–2004 and then the phase towards equality starts.

Keywords

Health expenditure β-Convergence σ-Convergence Inequality Gini coefficient Theil index 

References

  1. Barro, R. J., & Sala-i-Martin, X. (1992). Convergence. Journal of Political Economy, 110(2), 223–252.CrossRefGoogle Scholar
  2. Barro, R. J, & Sala-i-Martin, X. (2004). Economic growth, published by Prentice-Hall of India Private Limited, New Delhi.Google Scholar
  3. Bhalotra, S. (2007). Spending to save? State health expenditure and infant mortality in India. Health Economics, 16, 911–928.CrossRefGoogle Scholar
  4. Bhat, R., & Jain, N. (2004). Analysis of public expenditure on health using state level data. Indian Institute of Management, Ahmedabad, Working Paper, June.Google Scholar
  5. Cherodian, R., & Thirlwall, A. P. (2013). Regional disparities in per capita income in India: Convergence or divergence? University of Kent, School of Economics Discussion Papers, 1313, August 5.Google Scholar
  6. Choudhury, M., Amar Nath, H. K. & Datta, P. (2011). Health expenditure by the central government in India: State level distribution. National Institute of Public Finance and Policy, New Delhi, Working Paper, September.Google Scholar
  7. Das, R. C., & Dinda, S. (2014). Convergence in bank credit: A study of the major Indian states over the period 1972–2010. In Dincer & Hacioglu (Eds.), Global strategies in banking and finance (Chapter. 7), Pennsylvania, USA: IGI Global.Google Scholar
  8. Domazet, A., Sendic, R., & Alic, A. (2012). Convergence analysis of household expenditures using the absolute β-convergence method. Business Systems Research, 3(1), 23–29.Google Scholar
  9. Friedman, M. J. (1992). Do old fallacies ever die? Journal of Economic Literature, 30, 2129–2132.Google Scholar
  10. Gaspar, A. (2010). Economic growth and convergence in the world economies: An econometric analysis. In Proceedings of the Challenges for Analysis of the Economy, the Businesses, and Social Progress, International Scientific Conference (pp. 97–110).Google Scholar
  11. Kadekodi, G., & Kulkarni, K. (2006). Status of health and medical care in India: A macro perspective. India: United Nations Development Programme.Google Scholar
  12. Kaitila, V. (2004). Convergence of real GDP per capita in the EU15-How do the accession countries fit in? ENEPRI Working Paper No. 25, January.Google Scholar
  13. Kerem, K., Puss, T., Viies, M., & Maldare, R. (2008). Health and convergence of health care expenditure in EU. International Business & Economics Research Journal, 7(3), 29–43.Google Scholar
  14. Mankiw, G., Romer, P., & Weil, D. N. (1992). A contribution to the empirics of growth. Quarterly Journal of Economics, 107, 407–437.CrossRefGoogle Scholar
  15. Nayyar, G. (2008). Economic growth and regional inequality in India, Economic and Political Weekly, Feb 9–15, 43(6), 58–67.Google Scholar
  16. Nixon, J. (2000). Convergence of health care spending and health outcomes in the European Union, 1960–95 (p. 183). Centre for Health Economics, Discussion Paper, No: The University of York.Google Scholar
  17. Odhiambo, S. A., Wambugu, A., & Kiriti-Nganga, T. (2015). Convergence of health expenditure in Sub-Saharan Africa: Evidence from a dynamic panel. Journal of Economics and Sustainable Development, 6(6), 185–205.Google Scholar
  18. Oyedele, O., & Adebayo, A. (2015). Convergence of health expenditure and health outcomes. International Journal of Economics, Finance and Management, 4(2), 46–53.Google Scholar
  19. Panopoulou, E., & Pantelidis, T. (2011). Convergence in per capita health expenditures and health outcomes in OECD countries. Applied Economics, 44(30), 3909–3920.CrossRefGoogle Scholar
  20. Prachitha J., & Shanmugam, K. R. (2012). Efficiency of raising health outcomes in the Indian States, Madras School of Economics, Working Paper No. 70, May.Google Scholar
  21. Purohit, B. C. (2012). Health policy, inequity and convergence in India, Madras School of Economics, Working Paper No. 74, September.Google Scholar
  22. Quah, D. T. (1993). Galton’s fallacy and tests of the convergence hypothesis. The Scandinavian Journal of Economics, 95, 427–443.CrossRefGoogle Scholar
  23. Theil, H. (1967). Economics and information theory. Amsterdam: North Holland.Google Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Katwa CollegePurba BardhamanIndia

Personalised recommendations