Health care expenditure and economic growth in Uganda: an empirical study

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The university of Dar es Salaam
This dissertation focuses on empirical analysis of the relationship between Health Care Expenditure and Economic Growth in Uganda. It sets out to investigate whether or not increase in health resources contributes to the country’s overall economic growth. It does so by analyzing the impact of health care expenditure on Uganda’s GDP. The empirical strategy of the dissertation relies on the neo-classical Solow’s growth model but with a little modification to include the human capital component (Augmented Solow growth model). Due to the unit root problem in the data, co-integration and Vector Error Correction Model (ECM) are estimated. Furthermore, granger causality tests are conducted. Empirical results indicate the existence of a positive and significant long run impact of health care expenditure on GDP. The study also finds co-integration between per capita health expenditure and GDP in Uganda. Granger causality tests indicate the existence of a unidirectional causality running from per capita GDP to per capita health expenditure. Based on the findings, it is concluded that Uganda’s economy can achieve overall growth if health resources are increased. This dissertation therefore recommends increase in health resources allocated to the health sector, given the importance of healthy people to economic growth. Emphasis should also be put towards developing the National Health Insurance Policy to supplement health funding from the central government and finally, ensuring that health resources are put to proper use.
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Health care, Financing, Expenditures, Public, Economic growth, Economic development, Uganda
Nerima, E.(2012). Health care expenditure and economic growth in Uganda: an empirical study. Masters dissertation, university of Dar es Salaam. Available at (