An Assessment of the Marginalizing Impact of Poor Governance on the Efficacy of Public Health Expenditure in LMICS

World Review of Business Research, Vol. 8, No. 1, pp. 147-160, March 2018

14 Pages Posted: 22 Nov 2017 Last revised: 28 Apr 2018

See all articles by Muntasir Murshed

Muntasir Murshed

Bangladesh Institute of Development Studies (BIDS); Centre for Policy Dialogue; North South University - Department of Economics, Students

Ashraf Ahmed

BRAC University - Department of Economics

Date Written: 2018

Abstract

The multidimensional role of good governance is believed to be central in achieving the development agendas all over the globe. Good governance laid the foundation moving from the Millennium Development Goals (MDGs) to the Sustainable Development Goals (SDGs) agenda which acknowledged the key role of governance in achieving the SDGs by 2030. Moreover, the role of good governance is of even more significance when it comes to health care development merely due to the fact that it ensures effective and efficient utilization of public resources allocated for the health sector in particular. The aim of this paper is to bridge the gap in the empirical literature by analyzing, both theoretically and empirically, the effects of multiple governance indicators on the health attributes across selected lower-middle-income countries across South and Southeast Asia. The paper incorporated relevant annual data from 2000 to 2016 and considered a system of simultaneous equations in which key health indicators were expressed as functions of five crucial indicators of governance. Three-Stage Least Squares (3SLS) panel data estimation tools were used to check the robustness of the findings. The results confirm that most of the governance indicators are effective in influencing the health status in the panel and estimated relationships, more or less, corroborate to the a priori hypotheses which were built in light of economic theories. In addition, the authors also find that poor governance reduces the efficacy of health expenditure in terms of achieving the desired health outcomes. These imply that good governance is a key issue when it comes to public service deliveries, especially in relevance to the health sector. In accordance with the results, it can be expected that promoting good governance within the economy can lead to the attainment of global good health and well-being.

Keywords: governance, health, sustainable development, lower middle income countries, South Asia, Southeast Asia

JEL Classification: Q001, D73, I15, I11

Suggested Citation

Murshed, Muntasir and Ahmed, Ashraf, An Assessment of the Marginalizing Impact of Poor Governance on the Efficacy of Public Health Expenditure in LMICS (2018). World Review of Business Research, Vol. 8, No. 1, pp. 147-160, March 2018, Available at SSRN: https://ssrn.com/abstract=3073784

Muntasir Murshed (Contact Author)

Bangladesh Institute of Development Studies (BIDS) ( email )

E-17, Agargao, Shere Bangla Nagar
Dhaka, 1207
Bangladesh

Centre for Policy Dialogue ( email )

Dhaka
Bangladesh
+8801674873708 (Phone)

North South University - Department of Economics, Students ( email )

Dhaka 1213, Dhaka 1209
Bangladesh
+8801674873708 (Phone)

HOME PAGE: http://https://www.linkedin.com/in/muntasir-murshed-4b6b46151/

Ashraf Ahmed

BRAC University - Department of Economics ( email )

Dhaka,
Bangladesh

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
42
Abstract Views
288
PlumX Metrics