Health care expenditure and health outcome nexus: new evidence from the SAARC-ASEAN region.
BACKGROUND
The total health expenditure (as a percentage of GDP) and health outcomes in the region of South Asian Association for Regional Cooperation (SAARC) and Association for South East Asian Nations (ASEAN) are lower than that of the OECD region and the world. This study investigated the relationship between different types of healthcare expenditures (public, private and total) and three main health status outcomes - life expectancy at birth, crude death rate and infant mortality rate - in the region.


METHODOLOGY
Using the World Bank data set for 15 countries over a 20-year period (1995-2014), a panel data analysis was conducted where relevant fixed and random effect models were estimated to determine the effects of healthcare expenditure on health outcomes. The main variables studied were total health expenditure, public health expenditure, private health expenditure, GDP per capita, improved sanitation, life expectancy at birth, crude death rate and infant mortality rate.


RESULTS
Total health expenditure, public health expenditure and private health expenditure significantly reduced infant mortality rates, and, the extent of effect of private health expenditure was greater than that of public health expenditure. Private health expenditure also had a significant role in reducing the crude death rate. Per capita income growth and improved sanitation facilities also had significant positive roles in improving population health in the region.


CONCLUSIONS
Health expenditure in the SAARC-ASEAN region should be increased as our results indicated that it improved the health status of the population in the region. Public sector health funds must be appropriately and efficiently used, and accountability and transparency regarding spending of public health funds should be ensured. Finally, government and private institutes should implement appropriate strategies to improve sanitation facilities.
['Rahman|Mohammad Mafizur|MM|http://orcid.org/0000-0002-7950-1961', 'Khanam|Rasheda|R|', 'Rahman|Maisha|M|']
D001208:Asia D001210:Asia, Southeastern D005102:Health Expenditures D006801:Humans D007223:Infant D007226:Infant Mortality D008017:Life Expectancy D009026:Mortality D017149:Private Sector D017150:Public Sector
SAARC ASEAN Healthcare expenditure Health status outcomes Panel data