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Summary: Public Health Spending Efficiency

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where: Efficiency is the public health spending efficiency; YoungerPop is the share of population ages 0-14 to the total population; OlderPop is the share of population ages 65 and above to the total population; Population Density is the number of people per square kilometer of land area; GDPG refers to GDP growth; Inflation is the country's inflation rate; FDI is the inflows of foreign direct investment (FDI) as share of GDP; ODA is the net official development assistance (ODA) received per capita; the variable Exports refers to the share of exports of goods and services to GDP; VA, PV, RL, and CC refer to the governance indicators: voice and accountability, political stability and absence of violence or terrorism, rule of law, and control …show more content…

Three other equations (Equations 5-7) will be estimated to observe the behaviour of the demographic indicators' coefficients when control variables are present. Aside from the three main regressors, economic indicators are added as controls in Equation 5, while only governance indicators are included in Equation 6. In Equation 7, all economic and governance indicators are present in the regression analysis.
The rationale for the study's choice of independent and control variables, as well as their specifications, will be discussed as a basis for the empirical analysis. For a more organized discussion of the determinants, the regressors are grouped into three categories: demographic, economic, and governance indicators. The summary of independent and control variables used in this paper and their predicted signs are presented in Table …show more content…

Governance scores range from -2.5 (weak) to 2.5 (strong). Higher score values on these variables mean that the corresponding country is showing a better performance in governance. All four variables are expected to positively affect health spending efficiency. A higher voice and accountability score indicates that politicians are bound to provide better services since they know that their actions are being monitored by their constituents. Higher scores for rule of law and political stability and absence of violence or terrorism would mean that there are less risks involved in terms of the country's political and economic stability. A higher control of corruption score means that corruption in a particular country is lower, and is capable of providing public goods and services with less wastage of

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