<p>This study analyzed the effect of economic complexity on health outcomes in Africa, using the dynamic system GMM estimation framework and a panel of 36 African economies from 2010 to 2022. To avoid misleading estimates, the study accounted for year-fixed effects, serial correlation, heteroskedasticity, and cross-sectional dependence. To provide adequate robustness checks, the study utilized three key measures of health outcome, namely maternal mortality, under-5 mortality, and life expectancy. We find that advancing economic complexity translates to improved health outcomes through reductions in maternal and under-5 mortality rates as well as increase in life expectancy. We also find that government health expenditure, human capital development, and infrastructural development are potent channels for enhancing health outcomes in contemporary Africa. Additionally, we find that income per capita impedes health outcomes in the region, while the effects of foreign direct investment inflow and governance institutions are mainly muted. We discussed the policy implications of these findings, which mainly underlined the need for increased investment in healthcare and diversification of African economies to improve their economic complexity ranking in order to achieve better health outcomes in the region.</p>

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Economic Complexity and Health Outcomes in Africa: Empirical Insights from Panel Data Analysis

  • Umoh Boniface Denis,
  • Ekene ThankGod Emeka,
  • Jonathan E. Ogbuabor,
  • Chukwunweike A. Ogbuabor,
  • Ngozi H. Chinweuba

摘要

This study analyzed the effect of economic complexity on health outcomes in Africa, using the dynamic system GMM estimation framework and a panel of 36 African economies from 2010 to 2022. To avoid misleading estimates, the study accounted for year-fixed effects, serial correlation, heteroskedasticity, and cross-sectional dependence. To provide adequate robustness checks, the study utilized three key measures of health outcome, namely maternal mortality, under-5 mortality, and life expectancy. We find that advancing economic complexity translates to improved health outcomes through reductions in maternal and under-5 mortality rates as well as increase in life expectancy. We also find that government health expenditure, human capital development, and infrastructural development are potent channels for enhancing health outcomes in contemporary Africa. Additionally, we find that income per capita impedes health outcomes in the region, while the effects of foreign direct investment inflow and governance institutions are mainly muted. We discussed the policy implications of these findings, which mainly underlined the need for increased investment in healthcare and diversification of African economies to improve their economic complexity ranking in order to achieve better health outcomes in the region.