An econometric analysis of public sector expenditure and health outcomes in Tanzania

Although expenditure on health is accorded a central place in Government policies, there are few or no studies that have been done in Tanzania to determine the effects of public expenditure on health and health status. This study aims to bridge that gap. The study set out to investigate the impact of public expenditure on health outcomes (status) using both aggregate and disaggregates data. In addition, the study includes other significant explanatory variables such as immunization rate, HIV prevalence rate, health care, access to water and female literacy rate. The study estimates empirically a cross-section model by using aggregate and disaggregated data from all regions in Tanzania to determine the impact of those variables mentioned above life expenditure. The study finds, similar to other studies that in addition to per capita GDP, health expenditure and education expenditure interventions, immunization rate, female literacy rate, health care, access to safe water, can effect mortalities and life expectancy. The study concludes that in order to reduce infant mortality rate, under-five mortality rate and improve life expectancy in the country, the government should focus on increasing public spending to improve the capacity of the regions health and education sectors. Further, efforts should be exerted to increase the spread of immunization coverage and improve the quality of health care service delivering.