Economic Development and Policy Analysis
Permanent URI for this collectionhttps://repository.jhu.edu.ng/handle/123456789/14
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Item Health expenditure and growth dynamics in the SADC region: evidence from non-stationary panel data with cross section dependence and unobserved heterogeneity(Int J Health Econ Manag, 2018) Eugene Kouassi; Oluyele Akinkugbe; Noni Oratile Kutlo; J. M. Bosson BrouThis paper investigates the long run relationship between health care expenditure and economic growth, using panel data for 14 Southern African Development Community (SADC) member countries over the period 1995–2012. The non-stationarity and cointegration properties between health expenditure per capita and GDP per capita were examined, controlling for cross section dependence and heterogeneity between countries. Our results suggest that health expenditure and GDP per capita are non-stationary and cointegrated. These findings seem to confirm the notion that health expenditure is non-discretionary— health is a necessary good—in the SADC region. The estimated income elasticity is below unity but higher than what was obtained for the OECD regional grouping. The policy implication of our result is that adequate health care service provision should be a key objective of governmental intervention in the SADC region.Item Flow of Foreign Direct Investment to Hitherto Neglected Developing Countries(United Nations University, 2003) Akinkugbe OluyeleThe last decade or so has witnessed rather dramatic increases in the flow of foreign direct investment (FDI) to the developing countries of the world. However, the balance of evidence seems to point in one direction, the inflow has been uneven. Middle-income developing countries have benefited from this upsurge at the expense of the lower-income countries. In an attempt to explore the two complimentary issues involved in FDI flows, we adopted the two-part econometric approach in which a Probit model was first estimated in order to examine the binary issue of whether or not to locate FDI in hitherto neglected developing countries. In the second step, a panel regression model was employed to examine the factors that may explain the volume of FDI to further allocate to existing FDI-receiving countries. Our findings reveal that a combination of high per capita income, outward-orientation to international trade, a high level of infrastructure development and a high rate of return on investment are the significant decision parameters in the two-part aggregate investors’ behaviour analyses.