The Effects of Different Types of Health Expenditure on Mortality and Life Expectancy in Organization for Islamic Cooperation (OIC) Countries

Abstract

The aim of the study is to elaborate on the differential effects of public, private, external and out-of-pocket health expenditures on under-five, infant and neonatal mortality rates and life expectancy at birth. The study used cross-country data for the member countries of Organization of Islamic Cooperation (OIC) covering a period of 2000-2019. In the study, a log-likelihood fixed-effect panel data model was used to explain the determinants of mortality rates and life expectancy, which are the global use of health status or health output. Based on the findings, the study supports the view that the drop in mortality rates has mainly resulted from a surge in health expenditure-related variables, urbanization rate, medical care supply and gross domestic product (GDP) per capita. More originally, public health expenditures are more effective in reducing neonatal, infant and under-five, mortality rates than out-of-pocket health expenditures whereas it does not have such an effect on increasing life expectancy. This is so crucial for solving socio-economic inequalities, the poverty and health status of the households in OIC countries. Having an efficient and manageable urbanization in countries, is the most effective way to reduce mortality rates in all age groups. From the point of view of policy makers, it is important to make effective and targeted health expenditures in reducing child and infant mortality rates, by considering the role of the effectiveness of health expenditure types.

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