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Dependence of health outcome on health 
expenditure in Africa
1 in 8 child dies before 51 in 8 child dies before 5
in Africa 
1
Soheila Abachi
November 27, 2014 
Facts 
Life expectancy linked to economic growth (WHO) 
10% increase in life expectancy  0.35% increase in economic 
hgrowth 
Poor and rich countries economic growth difference due to 
health status of members (commission on microeconomics & health)health status of members (commission on microeconomics & health)
10 million <5 death in 2006, 5 million from Africa 
each min te 21 children < 5 die (UNICEF)each minute 21 children < 5 die (UNICEF)
~ 70% caused by diarrhea, malaria, neonatal 
infection pneumonia preterm delivery lack of oxygen at birthinfection, pneumonia, preterm delivery, lack of oxygen at birth 
(UNICEF)
2
Facts 
~ 50% of global <5 death in five countries: 
India, Nigeria, Democratic Republic of the Congo, Pakistan, China
H l h $/ / 2001Health care $/person/year 2001 (Commission for Africa, 2004)
High‐income countries > US$ 2,000 
Africa US$13‐$21 in 2001 
To deliver basic treatment & care for major communicable 
diseases & earl childhood and maternal illnesses in s b Saharandiseases & early childhood and maternal illnesses in sub‐ Saharan 
Africa expenditure should rise to US$ 38 by 2015
3
Data 
Health expenditure measured in PPP int. $ 
1995 Per capita total expenditure on health 
2005 Per capita total expenditure on health
Independent variablesp p
1995 Per capita government expenditure on health 
2005 Per capita government expenditure on health 
Child mortality rates in thousandsChild mortality rates in thousands 
2000 Number of under‐five deaths 
2010 Number of under‐five deaths 
2000 Number of infant deaths 
2010 Number of infant deaths
2000 Number of neonatal deaths
Dependant variables
2010 Number of neonatal deaths
4
Data 
Country 
Total $
1995
Government 
$ 1995
< 5 
D2000
Infant 
D2000
Neonatal
D2000
Algeria 164.7 119 24 20 12
Angola 84.2 59.5 143 86 36
Benin 43.1 19.4 41 26 11
Botswana 249.4 130.6 4 3 1
B ki F 29 4 11 4 94 49 20Burkina Faso 29.4 11.4 94 49 20
Burundi 24.3 7.8 40 25 11
Cabo Verde 69.4 55.8 1 1 1
Cameroon 52 12 1 95 58 23Cameroon 52 12.1 95 58 23
Central African Republic 25.2 10.7 24 16 7
Chad 36.6 12.7 76 43 18
Comoros 43 6 27 6 2 1 1Comoros 43.6 27.6 2 1 1
WHO databases, African countries, 45 observations, 10 variables 
5
Biological questions 
1. Impact of per capita government or total 
expenditure on health on neonatal death 
rates
2. Impact of per capita government & total2. Impact of per capita government & total 
expenditure on health on infant death rates
3 Impact of per capita government or total3. Impact of per capita government or total 
expenditure on health on < 5 children death 
ratesrates
6
900
1000 Nigeria
500
600
700
800
Per capita total &  government health expenditure 1995 and child mortality rate 2000
PC95TEXH PC95GEXH UFD00 ID00 ND00
Seychelles
200
300
400
500
0
100
Algeria
Angola
Benin
Botswana
rkina Faso
Burundi
abo Verde
Cameroon
ral African …
Chad
Comoros
Congo
te d'Ivoire
emocratic …
ial Guinea
Eritrea
Ethiopia
Gabon
Gambia
Ghana
Guinea
nea‐Bissau
Kenya
Lesotho
Liberia
adagascar
Malawi
Mali
Mauritania
Mauritius
zambique
Namibia
Niger
Nigeria
Rwanda
Tome and …
Senegal
Seychelles
erra Leone
uth Africa
Swaziland
Togo
Uganda
d Republic …
Zambia
Total health  <Five  Infant  Neonatal 
Bur
Ca
C
Centr
Côt
De
Equatori
Guin
Ma
M
Mo
Sao T
S
Sie
So
S
United
expenditure 1995 D2000 D2000 D2000
Min  $6 1  1  1 
M $94 86 53 23
7
Mean  $94  86  53  23 
Max  $629  934  567  245 
Scatter plots of original data
250
300
nds) 2000
500
600
) 2000
100
150
200
tal deaths (thousan
Neonatal death 2000
200
300
400
500
deaths (thousands)
Infant death 2000
0
50
0 100 200 300 400 500 600 700
Number of neonat
Per capita total expenditure on health (PPP int. $) 1995
0
100
200
0 100 200 300 400 500 600 700
Number of infant d
Per capita total expenditure on health (PPP int. $) 1995
Per capita total expenditure on health (PPP int. $) 1995 
600
700
800
900
1000
ousands) 2000
Nigeria
200
300
400
500
600
der‐five deaths (tho
< 5 death 2000
Seychelles
8
0
100
0 100 200 300 400 500 600 700
Number of und
Per capita total expenditure on health (PPP int. $) 1995
Seychelles
Correlation of per capita expenditure on health 
& child mortality rate& child mortality rate 
Negative, Low  PC95  PC05  PC95  PC05 g ,
TEXH TEXH GEXH GEXH
UFD00 ‐0.21  ‐0.19 ‐0.20 ‐0.21
UFD10 0 18 0 16 0 18 0 19UFD10 ‐0.18  ‐0.16 ‐0.18 ‐0.19
ID00 ‐0.20 ‐0.19 ‐0.20 ‐0.21
ID10 ‐0 18 ‐0 16 ‐0 17 ‐0 19ID10 0.18  0.16 0.17 0.19
ND00 ‐0.21  ‐0.20 ‐0.20 ‐0.21
ND10 ‐0.18 ‐0.17 ‐0.18 ‐0.19
9
Transformation 
Square root 
Did not help with the normalityDid not help with the normality 
Log 10 
Induced the normality considerably 
10
Q1: Impact of per capita government or total expenditure on health on 
neonatal death ratesneonatal death rates
Adjusted R‐squared p‐value AIC
ND10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH
0 2808 0 0016 51 530.2808 0.0016 ‐51.53
ND10 ~ PC05TEXH + PC95TEXH
0 2226 0 0019 ‐49 830.2226 0.0019 49.83
ND10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH +  
ID10 + UFD10
0.9183 0.0000 ‐147.74
ND10 ~ ID10
0 9192 0 0000 152 640.9192 0.0000 ‐152.64
11
Q2: Impact of per capita government & total expenditure on health on 
infant death ratesinfant death rates
Adjusted R‐squared p‐value  AIC
ID10  ~  PC05GEXH + PC05TEXH
0.2438 0.0010 ‐41.53
ID10  ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH
0.3177  0.0006 ‐44.35
ID10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH + ND10 +  
UFD10
0.9866  0.0000 ‐219.53
12
Q3: Impact of per capita government or total expenditure on health on 
< 5 children death rates< 5 children death rates
Adjusted R squared p value AICAdjusted R‐squared p‐value AIC
UFD10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH
0.3379 0.0003 ‐41.69
UFD10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH + 
ID10 + ND10
0.2226 0.0019 ‐49.83
UFD10 ~ PC05GEXH + PC05TEXH + PC95GEXH + PC95TEXH + 
ID10 + ND10ID10 + ND10
0.9809 0.0000 ‐199.65
UFD10 ~ PC05GEXH + ID10
0.981 0.0000 ‐203.24
13
Quality of fit of the models 
Assumptions 
Normality of error termsy
Constant variance of residuals vs. fitted values
Independence of error termsIndependence of error terms
Influential observations
14
Significance of the factors in full models
p‐values of factors
Impact of health expenditure on health 
outcomes of 2010
ND10 ID10 UFD10
Shapiro‐Wilk normality 0.014 0.019 0.069
PC05GEXH 0 806 0 758 0 669PC05GEXH   0.806 0.758 0.669
PC05TEXH   0.394 0.513 0.425
PC95GEXH 0.097 0.088 0.089PC95GEXH 0.097 0.088 0.089
PC95TEXH   0.696 0.860 0.779
15
Principal component analysis  
Correlation matrix
Eigenvalues >= to 1 
1 2 97pc1: 2.97
pc2: 1.57
Cumulatively account for
68
Cumulatively account for 
94.4% of variance 402
16
Comp.1 Comp.4 Comp.7 Comp.10
Scores plot 
h ld d h l l d d tChild death rates are positively loaded on 1st comp.
Per capita health expenditures are negatively loaded on 
2nd comp.
Comoros Eritrea
Liberia
p
02
component
Benin
Burundi
Cabo Verde Central African Republic
Chad
Congo
Democratic Republic of the Congo
Gambia
Guinea
Guinea-Bissau
Lesotho
MadagascarMauritania
Niger
Rw anda
Sao Tome and Principe
Togo
-20
dprincipalc
Botsw ana
Burkina Faso
Cameroon
Chad
Côte d'Ivoire
Equatorial Guinea EthiopiaGabon
Ghana Kenya
Malaw i
MaliMauritius
Mozambique
Namibia
g
Rw anda
Senegal
Seychelles
Sierra Leone
Sw aziland
UgandaUnited Republic of TanzaniaZambia
-4
2n
Algeria
Angola
Nigeria
South Africa
17
-5 0 5
1st principal component
Summary 
Health expenditures have statistically relatively low but 
significant effect on infant, neonatal and under‐five mortality in 
AfricaAfrica
Health expenditure only one of the many factors important in 
improving the health status of a member
per capita health spending & health outcomes negatively 
correlated
18
Future studies
Female & parent’s educationFemale & parent s education
Income & income equity  
Access to vaccines & HIVAccess to vaccines & HIV 
prevalence
Access to safe drinking waterg
Hunger, sanitation 
19
Thank youThank you. 
20

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