The Correlation of government health expenditure and Infant Mortality Rate (IMR)

Abstract

This study investigated the correlation between domestic government health expenditure (DGHE) and the rate of infant deaths among ten ASEAN member countries within 6 years period (2010-2016). The required data was collected from World Development Indicators (WDI) and random effects and fixed effects model were used to run regression analysis. Infant mortality rate was considered as outcome variable and domestic government health expenditure as predictor variable. In fact, private health expenditure, external health expenditure, urban population, immunization, GDP per capita and access to basic sanitation facilities were assumed as control variables in the model. The regression results revealed that domestic government health expenditure was negatively correlated with infant mortality rate at 5% significance level. Although private health expenditure and external health expenditure were negatively correlated with the rate of infant mortality, their relationship was not significant. Moreover, other control variables were also negatively associated with infant mortality rate in ASEAN countries. The findings suggest that, in the developing countries like Myanmar, the government should increase government health expenditure to promote better health outcomes such as reducing infant mortality rate through performing the correct allocation and good management of public health funds and it is worthy to consider on investing and providing more for the improvement of immunization programme and sanitation facilities to reduce infant mortality rates.