PVAR Analysis of Environmental Pollution, Health Expenditure and Economic Growth: Evidence from Sub –Saharan Africa

This study broadly examined the relationship among the environmental pollution, health expenditure and economic growth in SSA using data spanning from 1986 to 2020. The data for this study was secondary in nature and they were sourced from World Bank Development Indicator. The study employed Panel Vector Autoregressive model to capture the stated objective. The impulse response function results showed that GDP exerts significant positive impact on C02, N20 and CH4 in SSA but the response of the GDP to the standard deviation of C02 is more pronounced. In a similar manner, GDP also responds positively and significantly to the movement of health care expenditure but the response of GDP to the movement of TB is predominantly negative. The study, therefore, concluded based on findings that environmental pollution is still highly pronounced in SSA and its attendant effect on health has increased health expenditure in SSA as well as the numbers of doctors available in SSA are not enough despite huge expenditure on health sector. Based on the findings and conclusions of this study, it was recommended that governments of SSA should increase the budgetary allocation and financial resources of the health sector so as to sustain the flow of resources to improve the health outcomes. Moreover, government should ensure probity and accountability through closed monitoring and proper attention to health spending.