article · International Journal of Research in Economics and Finance
An empirical investigation across 44 economic sectors in Morocco between 2014 and 2020 evaluated how different types of health expenditure influence sectoral total factor productivity. Using dynamic panel models to account for endogeneity and selection bias, the analysis reveals that sectoral productivity is strongly persistent and path-dependent. Notably, household health expenditure demonstrates a positive and statistically significant relationship with productivity gains across sectors. In contrast, public health expenditure is negatively associated with productivity, highlighting potential inefficiencies in resource allocation. Other health-related spending categories, including investments and intermediate expenditures, show no robust productivity effects. Consequently, the evidence indicates that household-driven health investments play a primary role in enhancing sectoral productivity, suggesting that decentralized, household-level interventions are more effective than broad public spending programmes.
Understanding how healthcare funding influences economic performance helps governments and planners allocate limited resources effectively. By showing that direct household health spending drives productivity more reliably than centralised public expenditure, this work underscores the need for reformed public expenditure management and targeted support mechanisms that reach families directly to foster wider economic growth.
The abstract does not indicate an application pathway.
AI-generated from the published abstract. Always read the original work before citing.
This paper analyzes the relationship between health expenditure and sectoral total factor productivity (TFP) in Morocco over the period 2014–2020. The analysis uses panel data covering 44 economic sectors. TFP is estimated from a Cobb–Douglas production function using the Olley and Pakes (1996) methodology to correct for simultaneity and selection bias. A dynamic panel model is then estimated using the System Generalized Method of Moments (GMM) to address endogeneity and unobserved heterogeneity. The results indicate strong persistence in sectoral TFP, consistent with path-dependent productivity dynamics. Household health expenditure has a positive and statistically significant effect on productivity. Public health expenditure is negatively associated with TFP, raising concerns over efficiency and resource allocation. Health-related investment and intermediate expenditures do not exhibit robust productivity effects across sectors. The findings reveal heterogeneous productivity returns across health spending components. The results point to the predominance of household-driven health investments in supporting sectoral productivity gains. Policy implications point to prioritizing household-level health support and reforming public expenditure management to reduce inefficiencies. Targeted, decentralized interventions yield higher productivity gains than broad public programs. The study provides sector-level evidence from a developing economy, informing health and industrial policy design.
This page summarises published work. The authoritative version sits with the publisher.
DOI: 10.71420/ijref.v3i8-1.349
Is something wrong with this record? Report it or request removal.
Discussion
Have you built on this work, tried to replicate it, or seen it applied in practice? Share what you know. Verified researchers and MARATTO™ domain experts can open a discussion, and any member can reply. Contributions are reviewed before they appear.
No discussion yet. Open the first thread.
New to MARATTO™? Create a free account.
