Public Health Expenditure and Health Outcomes in Africa: The Moderating Effect of ICT Development

This study investigates whether ICT development modulates the effect of public health expenditure on health outcomes in a sample of forty-eight (48) African countries over the period 2000–2018. We approach health outcomes through under-five mortality, infant mortality, and life expectancy at birth. As measures of ICT indicators, we use mobile cellular subscriptions, the number of Internet users and an ICT development index constructed through principal component analysis (PCA) on the two previous ICT indicators. In addition, the relationship between public health expenditure, ICT development and health outcomes is examined in a dynamic framework using the system generalized method of moments (System-GMM). The results show that ICT development is important in the relationship between public health expenditure and health outcomes in Africa. Indeed, the net effect obtained when ICT is associated with public health expenditure is negative for mortality variables and positive for life expectancy at birth. These results suggest that the penetration of ICT in the African health system improves the population health. The policy implication is that African policymakers should promote the ICT diffusion in the health sector so that the goal of significantly improving health outcomes through committed investments in this sector is achieved in a sustainable manner in Africa.