Convergence in government health expenditure among SAARC nations

This study examines convergence patterns in Government Health Expenditure (GHE) as a percentage of GDP among the South Asian Association for Regional Cooperation (SAARC) countries from 2011 to 2022 to assess whether public health financing efforts are moving toward uniformity. Using secondary data from the World Bank and the World Health Organization, sigma (σ) and beta (β) convergence analyses were employed. Sigma convergence was evaluated using cross-sectional dispersion measures, while beta convergence examined the relationship between average annual growth in GHE and initial expenditure levels. The findings reveal a positive and statistically significant sigma trend (β = +0.0723, p = 0.035), indicating increasing dispersion and thus no σ-convergence. Similarly, the beta regression yielded a positive but statistically insignificant coefficient (β = +0.0033, p = 0.75), suggesting the absence of a catch-up effect among lower-spending countries. Together, these results indicate divergence rather than convergence in government health expenditure across SAARC nations. The study concludes that persistent structural inequalities in fiscal capacity and health governance continue to impede equitable progress toward Universal Health Coverage (UHC) and Sustainable Development Goal (SDG) 3.8, highlighting the need for stronger regional fiscal coordination, harmonized National Health Accounts (NHA), and enhanced institutional collaboration to promote equitable and sustainable health financing in South Asia.