Healthcare Expenditure, Health Outcomes and Economic Growth: A Study of BRICS Countries

This study examines the relation of health spending, health indicators and macroeconomic variables of the BRICS economies with economic growth by using panel data that span the years 2000–2019. According to the panel data analysis, the amount of government spending on healthcare has a positive effect on the gross domestic product (GDP) and gross national income per capita of the BRICS countries. Indicators of healthcare are positively related to GDP and GDP/capita. The exceptions are neonatal mortality and life expectancy at birth, both of which do not exhibit a statistically significant positive relation. The two dependent variables, GDP and GDP/capita, have a positive relation with the rate of population growth; however, GDP has a negative relation with inflation. When GDP and GDP/capita are used as dependent variables, the Hausman test indicates that the cross-section random-effect model is more significant than other models. Due to the positive relationship between GHE, GDP and GDP/capita, the government should play a major role in ensuring high-quality healthcare. Out-of-pocket expense increases in BRICS indicate a reduction in healthcare funds, limiting medical services for all citizens. There is a need to focus on healthcare infrastructure.