The Effect of Government Health Expenditure on Infant Mortality Rates in the SADC Region: A Case of Four Countries

Abstract

This study aimed to examine the effect of Government Health Expenditure (GHE) on Infant Mortality Rates (IMR) in the Southern African Development Community (SADC) region, focusing on four countries, namely:
Botswana, Eswatini, Namibia, and South Africa. Rooted in the Grossman Theory of Health Demand and the Wagstaff Model, the research employed a quantitative, longitudinal research design using panel data from
2010 - 2022. Data was sourced from the World Bank’s development indicators and an Ordinary Least Squares (OLS) regression model was utilised to analyse this data using STATA statistical software.
The findings of this study indicate that increased GHE significantly reduces IMR in the SADC region, with the results showing that a 1% increase in GHE (as % of GDP) reduces IMR by approximately 4.83 deaths per 1,000 live births. The mediating variables, namely: Maternal Education (ME) and Access to Clean Water (CW), have also shown a statistical significance in amplifying the effect of GHE on IMR in this region. Results indicate that a 1% increase in spending on each of the two mediating variables, ME and CW, resulted in reductions in IMR of 0.492 and 0.518 deaths per 1000 live births respectively.
These finding support the hypotheses that GHE has a significant negative effect on IMR in the SADC region; and that both ME and CW have a significant negative effect on IMR and thus act to complement the effect of GHE on reducing IMR in the SADC region. In light of this study’s findings, the researchers therefore urge the policymakers and their respective governments in the SADC member states to ensure increased and sustained GHE; increased and sustained investment in female education; increased funding of clean water and sanitation infrastructure expansions; as well as an adoption of integrated, multi-sectoral approaches to help achieve sustainable improvements in infant health outcomes in the Southern African region.