ANALYSIS OF HEALTH PRODUCTION FUNCTION FOR WEST AFRICA: IMPLICATION FOR ACHIEVING SUSTAINABLE DEVELOPMENT GOAL 3

Abstract

The contributions of health to economic prosperity of nations have been acknowledged in the literature. This informed why the sustainable development goal 3 focuses on good health and well-being. To achieve this goal, countries across the globe have been investing in health and health related activities. However, it is important to hinge health development policies on sound empirical findings. The performance of health indicators in West Africa has not been inspiring. Thus, this study analysed the health production function for West Africa over the period 2000-2021. The paper adopted Grossman health production function as theoretical foundation. It employed panel data modeling approach, using Fixed Effects (FE) and Random Effects (RE) estimating techniques for analysis. However, Hausman test confirmed the appropriateness of FE estimator. Findings of the study revealed that per capita income, human capital (education) and health expenditure per capita significantly improved life expectancy and reduced infant and under-five mortality rates in West Africa. However, malaria incidence reduced life expectancy and raised infant and under-five mortality rates in the sub-region. Population growth did not show any significant impact on the three health variables. Therefore, policies to improve health outcomes in West African countries should focus on boosting per capita income and raising health expenditure per capita. Moreover, it is imperative for West African nations to invest substantially in human capital, particularly education while concerted efforts should be made to reduce malaria incidence. Without these polices, the attainment of the SDG 3 in the sub-region by 2030 would be an illusion.